what is the statue of limitation on defaulted credit cards?

Question

is there a limitation on defaulted credit cards

Answer 1

The usual minimum time for a past due or a charge off to remain on your credit report is 7 years. However, it is calculated from the last activity on the account. Activity means moved into collections, any payments made. Be very careful. Banks will sell bad debt to debt collectors and the new collector will pursue you to no end. They will also try to get you to make a payment, which then resets your last activity to that date and the delinquency begins anew for another 7 years. Also debt collectors will try to open a "new account" which then they say they have the right to pursue for 7 years. They are very tricky. Make sure you keep records and can prove it was the same original debt, and they will have to remove it. Check out the FCRA (fair credit reporting act) at http://www.ftc.gov/os/statutes/031224fcra.pdf.

Answer 2

The above comments are good, but I have to point out two things. 1. Your credit card agreement probably says which state's law will goven the contract, and if it does, the issue of the SOL may be governed by that State, not by Georgia. 2. Your settlement agreement might state the consequences of a missed payment--it might say that if a payment is overdue or if the entire agreed amount is not paid off on time, the entire orginal debt becomes due immediately. You need to read that agreement, and also your credit card contract.

Answer 3

10 years

Answer 4

Statutes of limitation on such debt vary from state to state.

Bear in mind that an expired SOL does NOT wipe out any debt. It merely precludes obtaining a judgment against you for said debt. The debt remains due and payable, and a collection agency can come after you to pay for a very long time.

Answer 5

When a statute of limitation expires, it does not mean that the debt goes away, it only means you can use it as a defense to stop collectors from collecting thru the court system. Collectors can still
try to collect thru other methods.

In other words, they can continue to try to collect forever.

Answer 6

It depends on the state and a variety of other issues (such as the last time they tried to contact you). Check-out this site...

http://www.creditmanagementworld.com/legal/statutelimitations2.html

Answer 7

I'm pretty sure it's 10 years. It used to be 7, but they increased it.

Answer 8

7 yrs but beware many sell them off to credit reporting agencies and re-report it as a "new" collections account

Answer 9

I think it's 7 years.

Answer 10

It depends on your state...here is a link to a website that give you the information:

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml