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Statute Of Limitations On Credit Card Debt

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Statute Of Limitations On Credit Card Debt

Postby Brocly » Sat Feb 21, 2015 6:23 am


I get collections letters from LTD Financial about settling an outstanding debt.  This seems to stem from a MBNA credit card account I had.  I was looking into settling the debt(and having it verified)...  but then I read on this website about investigating statue of limitations laws in my state(NJ).

The last payment I made to MBNA was BEFORE November 2001.  LTD seemed to take over the account BEFORE 2003, and I never paid them any money.  I read that the statute of limitations should relate to my home state, but could relate to the state of that the credit card company is in.  Since this debt is over 10 years old, it shouldn't matter what state its in, right?... it is past the statute of limitations for them to sue me to collect it?

So, even if that was true I was considering pursuing the matter because I didn't want it to affect my credit score.  But, I also read that negative credit feedback of this type can only be on my report for 7 years.  I am waiting to receive my credit report from Equifax, but the other two agencies make no mention of MBNA or LTD in terms of open accounts(but it does show that LTD makes account review inquiries monthly.)

If I choose not to settle, is there any way for this to affect me in a negative fashion now or in the future?  Do the inquiries negatively affect my credit?

Thank you very much.

ANSWER: Hello:

The statute of limitations in NJ on a credit card debt is 6 years.  After 7 years this account is noncollectable by legal means and can not be reported on your credit history.  They are not breaking the law by trying to collect it but they can not threaten legal action on it.  I would send them a letter asking that they stop all collection activity on this account including telephone calls.  Good luck with this.  

---------- FOLLOW-UP ----------

By talking with them, sending a letter, or making inquiries... I wouldn't be "resetting the clock" right?  I was worried about doing that, but it seemed like, from what I read, that only some form of PAYMENT does that(where that 6 year clock in nj would begin again.)

Also- they can't sell this debt to somebody else now, can they?  I didn't know if that was another way to start the timeline over again.

thank you very much!
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Joined: Sat Feb 01, 2014 4:34 pm

Statute Of Limitations On Credit Card Debt

Postby Placido » Thu Mar 05, 2015 3:27 pm

The only way to restart the clock is to make a payment.  They can sell the account again and again but it will not reset the statute clock.  As far as the laws are concerned, this account is dead to any legal forms of collections.  Thanks for the follow up.
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Joined: Sun Feb 02, 2014 4:43 am

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