Can they still sue on this old debt? Maybe not, because of the Statute of Limitations

What does statute of limitations mean?

Statute of limitations are simply deadlines on when you are allowed to sue someone. Depending on what the case is about the deadline can be different. In consumer debt cases, there are two statute of limitations that are very important.

1. Suits on an account – 4 years

If you have been served with a Complaint or Statement of Claim, somewhere around paragraph 1 will be a statement that “This is a suit on an account” or “Complaint for Breach of Contract.”

A lawsuit based on an account is when a written or signed contract does not exist. For example, if a third party debt buyer does not have a copy of the binding cardmember agreement at the time you used a credit card, then the debt collector must sue under an account and not a contract.

So, if no writing exists, then the debt collector has four years to file a lawsuit and serve you. That four years starts running from (arguably) the last time you used the credit card or made a payment on the account.

2. Suits on a contract/Breach of Contract Lawsuits – 6 years

In order to be protected by the longer statute of limitations deadline, the company must be able to produce a copy of either the cardmember agreement that was in effect while you were using the credit card or the last statement showing use of the card.

The most recent card member agreement typically is no good. It must have been enforceable when you were using the credit card. So, if the company changed or updated its cardmember agreement, then make sure the company is giving you the right version.

The statute of limitations starts running on the date that the contract was breached (so usually the due date that a payment is missed.)

TIP: If you think that it has been more than four or six years since you either used the credit card or made a payment, then call a lawyer immediately. You may be able to get damages against the company.