State Votes to Lengthen Credit Card Collections Statute of Limitations

Arizona’s State Senate voted Wednesday to approve a bill that would explicitly spell out the statute of limitations on credit card debt. Credit grantors and collection agencies will now have six years to pursue Arizonans who default on the credit cards, according to the Yuma Sun.

Lawmakers said they felt compelled to step in because judges in different jurisdictions around the state were interpreting the statute of limitations for credit card debt differently. Some read credit card debt as a revolving line of credit, which currently carries a three year statute of limitations, while some interpreted it as a contract, which carries a six year SoL.

To remove any ambiguity, the bill declares the statute of limitations on both to be six years.

The bill has already passed the full House and both caucuses of the Senate. It now heads to a full Senate roll-call vote for final passage. While there is still opposition to the bill, it is expected to pass.