Credit Card Statute of Limitations in Pennsylvania

Credit Card collection lawsuits are on the rise across the country. We especially notice the increase in claims here in Pennsylvania based upon the volume of phone calls and emails that I receive on this topic.

One of the biggest questions that I receive is "What is the Statute of Limitations for Credit Card Debt"? The quick and easy answer is four (4) years. (Unless the contract is under Seal, which makes the SOL 20 years. Most Credit Card contracts are not under Seal).

The next question that must be answered on this topic is "When does the Statute of Limitations begin to run"? Generally, it starts on the date of the default, which is typically 30 days after you have made your final payment. However, the date of default is not always the same as the start of the Statute of Limitations. Let’s look at a fact scenario to explain this. Joe has a credit card account with Superbank. Joe makes payment for several years, then misses 3 payments. That will constitute a default. The Statute of Limitations begins to run with the default. Then, Joe makes 3 more payments and stops, creating a second default. The Statute will begin to run from the second default, not the first, so the Statute of Limitations will be 4 years from the date of the second default.

As a separate issue on this topic, we must discuss what the Statute of Limitations means to you. This law does not prevent a credit card company or collection agency from suing you. I tell my clients that anyone can sue you for anything at any time. What the Statute of Limitations does is give you a defense to the lawsuit, meaning that you have to affirmatively raise this defense, in writing, to the court. The court will then look at the facts involving your case, including the date of default, and then determine whether the claim against you has been timely instituted.