Statute of Limitations on Credit Card Debt in Arizona
The “statute of limitations” is the time period that a creditor or debt buyer has to sue you on a credit card debt. If the statute of limitations has “run”, no litigation can be filed on a consumer credit card debt.
The statute of limitations is a very important credit card debt defense to be considered in deciding how to fight a credit card lawsuit, but must be pleaded early in the litigation process to be utilized.
There are two key dates in considering the statute of limitations on a credit card debt:
- When did the statute of limitation start?
- When does the statute of limitations expire?
When does the statute of limitations start to run ?
This law office defends consumer credit card litigation utilizing the legal interpretation that in Arizona, the statute of limitations available for credit card lawsuit defense starts to run at the earliest of three dates:
- The first payment due date when you failed to make the full “minimum payment” required on the credit card debt – in essence, the first date you were charged “late fees”, unless you acknowledged in writing that the debt was valid, [just making subsequent payments does NOT restart the statute without the written acknowledgement] or
- The last date that you made a payment, or
- The date that the creditor or debt buyer “charged off” the debt (this is sometimes called “writing off the debt”)
The statute does NOT start running the last date you used the card.
When does the statute of limitations expire?
Since July of 2010, Arizona law provides that the statute of limitations on a credit
card debt is six years. If the entity suing you filed their case after July of 2010 then you have to deal with a six year statute of limitations.
So, for all practical purposes, there is no longer a valid three year statute of limitations argument on a credit card debt.
The statute of limitations stays the same on your credit card debt regardless of how many collection agencies have been hired to try to collect from you.
The statute of limitations stays the same on your credit card debt regardless of how may debt buyers have bought and/or sold your credit card debt.