Statute of Limitations for Credit Card Debt
Credit card companies cannot come after you forever. The law favors financial freedom, which is why creditors only have a limited time to sue you for unpaid credit card debt under South Carolina law.
If you’re being sued or threatened with a lawsuit after the applicable statute of limitations (SOL) has expired, discuss your options for achieving financial freedom with the experienced Florence credit card debt discharge lawyers at Reed Law Firm, P.A. Call (803) 726-4888 or connect with our S.C. debtors’ rights team online today.
South Carolina Statute of Limitations for Credit Card Debt Collections
Because credit card debt obligations are contractual, South Carolina’s statute of limitations for suing on contracts applies to state debts. S.C. Code § 15-3-530 gives the original creditor or legal successor three years from the default date or date of last activity (payment) to file a lawsuit against the debtor. If the creditor fails to file litigation within that timeframe, the debt is ‘time-barred’. This means the creditor has no legal remedy for recovering on this ‘zombie debt’ or obtaining a judgment lien, but it does not mean the debt disappears.
Exceptions to the S.C. Debt Collection SOL
Before calculating the timeframe applicable to your credit card debts, consider the following exceptions that might extend the time creditors have to file litigation.
Account Activity
The statute of limitations generally starts ticking on the default date. However, it might reset if you make a payment. This includes making one payment on a settlement plan before defaulting once more.
Private Collection Efforts
Unlike bankruptcy proceedings, time-barred debts do not disappear. Collections agencies can still collect on the debt, provided they do not violate the Fair Debt Collection Practices Act (FDCPA). FDCPA violations include:
- Threatening time-barred litigation
- Harassment
- Abusive language
- Excessive calls
- Making misleading representations about legal rights
- Failing to respect ‘cease and desist’ letters
Discuss any unlawful collection efforts, especially after the SOL has expired, with an experienced debtor’s rights attorney in Florence, S.C.
Settling Time-Barred Credit Card Debts in South Carolina
Negotiation power is the primary benefit of working with time-barred debts. Although collections may continue and the debt stays on your credit report, creditors have no legal recourse for obtaining payment. This often allows experienced credit card debt relief lawyers to negotiate settlements for pennies on the dollar, ending all collection efforts and potentially improving your credit score.
Florence, S.C., Credit Card Debt Relief and Settlement Lawyers Ready to Help
If collections agencies are attempting to collect on old credit card debts, any legal action may be prohibited by the applicable statute of limitations. Discuss your rights to be free from time-barred debts with the experienced Florence debt relief lawyers at Reed Law Firm, P.A. Call (803) 726-4888 or confidentially connect with our legal team online today.
