What is the statute of limitations on credit card debt?
Question Details:
I received a notice of wage garnishment today at my employer. This debt is at least 6 years old. I have gotten no correspondence from this company in at least that long. In IA.
Under the law of all states in this country, the statute of limitations is premised upon a cause of action such as fraud or breach pf contract and not on the specific type of debt that someone allegedly owes.
In any event, typically, the statute of limitations for breach of contract or common counts (money had and received) is four years from the due date or breach. Fraud is three years from the wrongful act.
Most credit card claims are based upon breach of contract or common counts. From what you have written, six years of passage on a debt may very well bar the debt from a lawsuit under your state's statute of limitations.
