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Tag Archives: Credit Card Debt

Illinois Credit Card Claims subject to 5 year Statute of Limitation – not 10 years for written contract

Posted by David Leibowitz on June 3rd, 2009 in Uncategorized, , ,

Is the statute of limitation for credit card debt 10 years or 5 years in Illinois?  For years, credit card companies and debt buyers from credit card companies have tried to collect debts up to 10 years old in Illinois.  This is because the statute of limitation for a debt arising from a written contract is 10 years in Illinois.

However, the statute of limitation for a general account stated is only 5 years in Illinois.

Which one applies?

In a very important recent decision of the Illinois Appellate Court, Portfolio Acquisitions v. Feltman, No. 1-07-3004 (May 20, 2009) 3rd div. the court held that the five year statute of limitations for accounts stated, rather than 10 year limitations period for written agreements, applies in a complaint by debt collector against defendant for collection of credit card account balance.

Debt collectors frequently try to collect debts beyond the statute of limitation.  They try to trick, lure or otherwise persuade people to pay even a little bit of the debt to revive the statute of limitation.  They act friendly.  They call you a client.  This is a scam.  It is a violation of the Fair Debt Collection Practices Act.  Click here to learn more about the FDCPA.  We often refer to this sort of debt as “zombie debt” becauise it seems to arise from the dead to haunt you.

Lakelaw can help defend you against credit card debt.  If you get sued for “Zombie Debt”, we’ll sue the debt collector back and seek damages and attorneys’ fees.


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