The statute of limitations regarding the collection of credit card debt in Arizona has been somewhat of a gray area over the past several years, as there has been a great deal of ambiguity regarding when the statute of limitations should apply. However, state lawmakers are now advancing legislation to clarify the statute of limitations for collection agencies.
The Arizona Republic reports that House Bill 2412 specifies that all credit-card debts remain collectible for six years. When debts become more than six-years-old, collectors can no longer pursue people who do not pay off the debt. The law can be seen as both beneficial to consumers and debt collectors because there is now better clarification of what the rights and responsibilities are for each side.
Governor Jan Brewer officially signed House Bill 2412 into a law on April 12, according to ACA International. Before the passage of the law, debt collectors would sometimes have just three years to pursue credit card debts from consumers. This change lead some lawmakers like Senate Minority Leader David Schapira to argue that giving banks more time in certain situations is not beneficial to the debtor.
It's important for debtors to be aware of their rights when it comes to debt collection under both state laws and federal laws. The Fair Debt Collection Practices Act (FDCPA) at the federal level prohibits certain methods of debt collection that include unfair practices and making false statements to the debtor.
More information on debt collection laws can be found through our Related Resource pages.