Statute of Limitations on Credit Card Debt Lawsuits in Missouri

How Long Do They Have to Sue?

The Statute of Limitations plays a critical role in determining the timeframe within which creditors can legally pursue the collection of credit card debt. In Missouri, the statute on credit card debt collection is subject to specific variations and extensions. This article aims to provide an overview of the statute of limitations in Missouri, including its variations, ways in which the time period can be extended, potential defenses for defendants, and examples of cases where the statute of limitations was missed, resulting in the dismissal of the case. We will also reference the applicable Missouri statutes.

In Missouri, the statute of limitations for the collection of credit card debt is generally five years. Pursuant to Missouri Revised Statutes Section 516.120, creditors have five years from the date of the last activity or payment on the credit card account to file a lawsuit seeking repayment of the debt.

Variations and Extensions:

It’s important to note that certain circumstances can modify the limitations on credit card debt collection:

a. Partial Payment: If the debtor makes a partial payment toward the debt, the statute of limitations may restart. This payment is considered a new activity on the account, potentially extending the time period.

b. Written Acknowledgment: If the debtor provides a written acknowledgment of the debt, the statute of limitations may be extended. The acknowledgment serves as evidence of the debtor’s recognition of the debt, potentially resetting the time clock for the statute of limitations.

c. Promissory Note: If the credit card debt is supported by a written promissory note, the statute of limitations may be extended to ten years, according to Missouri Revised Statutes Section 516.110.

Defenses Against Credit Card Lawsuits:

When facing a credit card debt collection lawsuit, defendants may have various defenses based on the statute of limitations:

a. Expired Statute of Limitations: If the creditor files a lawsuit after the statute of limitations has expired, the defendant can raise the defense of an expired time limit, seeking dismissal of the case.

b. Lack of Written Acknowledgment: If the defendant disputes the debt and no written acknowledgment exists, they can argue that the statute has expired, providing a defense against the collection efforts.

c. Identity Theft: In cases where the debt arises from identity theft, the defendant can raise this defense to challenge the validity of the debt, potentially leading to dismissal.

Examples of Dismissed Cases:

Instances where the statute of limitations was missed and the case was dismissed highlight the importance of adhering to the time limits:

a. A credit card debt collection lawsuit was filed six years after the last activity on the account. The defendant raised the defense of an expired time, resulting in the dismissal of the case.

b. A creditor filed a lawsuit for a credit card debt ten years after the debtor made a partial payment. The defendant argued that the statute of limitations had expired due to the partial payment, leading to the dismissal of the case.

Conclusion: Understanding the statute of limitations on credit card debt collection in Missouri is crucial for both creditors and debtors. Debtors should be aware of their rights and the potential defenses they can raise if faced with a collection lawsuit. Creditors must adhere to the applicable time limits to maintain a valid claim. Consulting with a knowledgeable attorney is essential to navigate the complexities of debt collection cases and ensure compliance with the statute of limitations laws in Missouri.

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