Debt collectors cannot sue, or threaten to sue, over a debt that is past the state time limit for lawsuits, the Consumer Financial Protection Bureau says. In some states, though, a partial payment or even a promise to pay can bring an old debt back to life and restart that clock. For anyone getting calls about an account that went bad years ago, the order of events matters a great deal.
That time limit is called the statute of limitations, and the CFPB says most states set it between three and six years for most debts. The debt itself does not disappear when the period ends. What disappears is the collector’s right to take the matter to court, which is the threat that frightens most people into paying.
What collectors cannot do once the time limit passes
The rule comes from the Fair Debt Collection Practices Act and its companion, Regulation F. In an advisory opinion published in the Federal Register on May 1, 2023 (88 FR 26475), the CFPB affirmed that a debt collector may not sue or threaten to sue to collect a time-barred debt. The ban covers the threat as well as the filing.
People being chased for a credit card balance, a medical bill or a personal loan from several years back need two dates before anything else: the day of the last payment and the day the first required payment was missed. In some states the clock starts at the missed payment, and in others it runs from the most recent payment, even one made while a collector was already calling. A move to a state with different laws can also change the picture.
Retirement deadlines, in your inbox: Miss an enrollment or claim deadline and the money can be gone. The Retirement Money Brief keeps you ahead of the ones that matter, every weekday.
Get the Retirement Money Brief →
We may earn a commission from links on this page.
Collectors are still allowed to ask for payment. The CFPB says that in most states they can keep trying to collect after the period expires, by letter or by phone, as long as they follow the rest of the law. Federal student loans sit outside the whole idea, because the agency says they have no statute of limitations.
The CFPB’s guide to rights when a collector calls tells people to find out what the statute of limitations is for filing a lawsuit on an old debt. It also warns that a written request to stop contact does not stop lawsuits or negative credit reporting.
How a small payment can start the clock over
This is the part that catches people. The Federal Trade Commission says that in some states, if a person pays any amount on a time-barred debt, or even promises to pay, the debt is “revived.” That resets the clock and starts a new limitation period, so the collector may be able to sue for the full amount.
The CFPB gives the same warning in plainer terms. Making a partial payment or acknowledging that an old debt is owed may restart the time period, even after it has expired. Because the rule depends on the state, even a small payment offered to make a collector go away is risky until the state’s rule is known.
The same caution applies to words. Agreeing on a call that a debt is owed, or promising to send money next month, is the kind of promise to pay the FTC describes. The FTC suggests starting by asking the collection company what its records show about the date of the last payment, then confirming the state’s time limit with the state attorney general’s office or a local legal aid office.
What happens when a lawsuit arrives anyway
A lawsuit filed after the period expires is a violation of the federal debt collection law, according to the CFPB. A court may still award a judgment, though, if the person sued does not show up and raise the statute of limitations as a defense. The agency says it is the responsibility of the person being sued to point out that the time has run out.
The FTC’s advice matches. Respond by the date in the court papers, do not ignore the lawsuit, and tell the court the debt is time-barred. The CFPB adds that someone sued over an old debt may have a claim against the collector under the federal law and may want a lawyer to work out the limitation period.
The CFPB also says a lawsuit over a collection violation must be filed within one year of the offense. Its advice for the meantime is to keep good records of every communication with a collector, saving letters and noting dates, times and what was discussed, since collectors keep records of their own and admissions can be used later.
What a collector has to send after the first call
Collectors owe written information about the debt as well. The FTC says a collector must give “validation information” when it first communicates with someone or within five days afterward, including the collector’s name and address, the creditor’s name and the amount owed. A dispute made within 30 days of getting that notice makes the collector stop collecting until it sends written verification.
People who want the calls to stop can mail a letter asking the collection company to stop contacting them, keep a copy and use certified mail with a return receipt. Complaints about a collector can go to the state attorney general, the FTC or the CFPB. None of that settles the harder question for an old account, which is whether the clock has run out in the state involved or was just restarted.
Could one payment on an old debt restart the clock?
In some states, a well-meant payment on a time-barred debt can turn a debt that collectors cannot sue over into one they can. A lawsuit left unanswered can end in a judgment even when the time limit has passed. Both mistakes come from acting before the dates are lined up.
The Bank Account & Debt Protection Kit lays out the debt-validation steps and includes a debt inventory, call log and deadline tracker, so the date of the last payment, each call and each deadline sit in one place. Its Part 5, Old Debt and the Clock, is written for exactly this situation.
More Financial Reading
- 21 Ways to Stretch a $2,087 Social Security Check
- 15 Places to Find Your Share of the $4.25 Billion States Give Back
- 15 Steps to Stop the Scams That Took $7.7 Billion From Seniors
This article was produced with AI assistance and edited for accuracy against the sources linked above.
