This is a federal or state law that sets the time limit on which a legal action can be brought in front of a court. These statutes are designed to prevent stale claims from arising after all evidence has been lost or witnesses have died. Abbreviated as S.O.L.
Every state has their own law regarding this time limit. It can be 3 years or 6 years. It may also depend on whether the agreement was oral or in writing. For example: in Missouri the statute of limitations on an oral agreement is 5 years where a written is 10.
Statute of Limitations
Credit card debt is always considered an “open-ended account” where the balance varies at any given time. States may have set a different time limit for these types of accounts. As an example, Missouri has it is set for 5 years.
When thinking about how the statute of limitations effects your case, it is wise to investigate your state’s laws on statute of limitations.
- Credit Infocenter
- The Free Dictionary by Farlex