Legal Question in Credit and Debt Law in Pennsylvania
Credit Card Debt
I have a credit card from 2002 that I disputed because of overlimit fees. The bill was under around $400 but now is almost $1800. It was sent to a collection agency to pursue and I protested with letters regarding the excessive fees. I recently was informed that the account has been recalled by the credit card company and that the collection agency is no longer handling it. However, I'm not sure why the credit card company recalled the account after all these years. My question is in the event they commence a law suit, what is the statute of limitations in Pennsylvania? Is it 4 years from the date of last payment? Also, I read somewhere that the statute of limitations can start up again once a debtor makes contact with the creditor. Is there a statute that references this?
2 Answers from Attorneys
Re: Credit Card Debt
Typically the statute of limitations in PA for this type of debt is 4 years from the date of the default. The statute does not start up again when a debtor makes contact with the creditor unless the debtor acknowledges the debt, typically by means of making a payment.
Re: Credit Card Debt
The statute of limitations begins to run when the plaintiff's cause of action accrues. There's a dispute between creditors attorneys and debtors attorneys as to when that occurs. Extreme creditors attorneys argue that it is as of the "charge off" date. Extreme debtors attorneys argue that it is as of the last use of the card. I think a reasonable position is that it starts with the first missed payment after the last use of the card.
Contacting the company does not re-start the running of the statute. A partial payment may or may not restart the statute. If there is a written settlement agreement, though, the creditor can sue upon that agreement.
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