Legal Question in Credit and Debt Law in New Jersey
statute of limitations
what is the statute regarding collection of credit card debt purchased by an agency 4-5 years after the credit card co. wrote it off?
1 Answer from Attorneys
Re: statute of limitations
The usual rule for commercial debts in New Jersey is six years from the time that the statute begins to run. Debts to be collected under the law of other States may have a different time (frequently four years). The problem is determining when the period starts to run and preventing its re-start. The general rule is that the statute begins to run when the debt is dishonored. That would usually be when payment first became overdue. However, the running of the statute might be tolled (delayed) for certain things such as negotiations or when the debtor could not be served with a summons because they were out of the country, etc. Additionally (and very important to note), in most instances the statute will be reset to zero if payments, even partial payments, are resumed. So, if you intend not to pay, it is important that you don't make any payment at all to the creditor or, if you do, that it is made under a written settlement agreement where you agree with all the terms. Savy collection agents will try to fool you on that point.
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