Statute of Limitations on Credit Card Debts

If your credit card default is old, like at least 3 years since the last payment, then check to see if your debt is time barred before you pay

Credit card debts become time barred after a certain # of years have passed. and do not have to be paid back if you choose. This is called the statute of limitations. This time period varies for each state. You can find this for your state by going to this link and looking under “open” accounts.

If the # of years since your last payment is greater than the time period listed for your state, then the debt is time barred.
Mary lives in California and defaulted on an AMEX card and last made a payment in Jan. of 2006…..5 years ago. The Statute of Limitations in Calif is 4 years, so this debt is outside the Statute of Limitations and is time barred. If her creditors took her to court they would loose, assuming she showed up and used the Statute of Limitations as a defense. Once this time period is up, creditors become legally powerless over you. All they can do is call and annoy you into paying.
At this point you can send a Cease Communications letter and be done with them: