Definition
The statute of limitations is a time limit by which a debt collector’s right to pursue legal action expires.
Analysis
The statute of limitations protects consumers by imposing time limits on legal action related to debt collection. The statute of limitations is imposed by state legislatures, and therefore it varies from state to state. Additionally, there may be variations in the statute of limitations, depending on the type of contract that is being examined.
A consumer does not have to worry about facing a judgment on a debt they defaulted on in 1984 because the statute of limitations has already expired on the debt. However, a zombie debt collector may, and sometimes does continue to pursue collection of the debt, even though they have no reasonable legal right to force repayment.
The statute of limitations will be the state-imposed time limit that begins on the date of last activity. States impose a statute of limitations ranging from 3 to 15 years for most written contracts. Most states have a limit of 4 to 6 years.
In order to find out the statute of limitations on written debt contracts in your state, you may search online. Some online sources may not be completely accurate. In addition, some states may have additional requirements on the statute of limitations for revolving accounts. For this reason, it may be advisable to contact competent legal counsel if you are facing a judgment if you believe the statute of limitations may have expired in your state.
