What is the statue of limitations for Arizona regarding bad credit against someone?  7 years?  We have a judgment against us that is 5 years old and is not paid.  Is it true that in 2 years they can no longer collect it and it must be removed from our credit report?

There are a number statutes of limitations in Arizona for various kinds of debt.  Here are a few:

• Contract in writing for debt.  Since creditors require a written agreement, this limitation would apply to most debt.  An action for debt evidenced by or founded upon a contract in writing must be commenced within 6 years from the time that the cause of action accrues.  [A.R.S. �12-548]  The 6 years does not start at the time that the loan is made.  It starts on the date that the payments are due--either the date that the final payment is due [Cheatham v. Sahuaro Collection Service, Inc., 118 Ariz. 452, 577 P.2d 738 (App. 1978)], or the date that each payment is due [Navy Federal Credit Union v. Jones, 187 Ariz. 493, 930 P.2d 1007 (App. 1996)].
  If this statute is applied in the case of credit card debt, this could be a very, very long time.  The minimum payment required for a credit card may not require that the final payment be made for 10, 15 or more years.  Following the second case, you could still be sued for 6 years after the final payment was due.
• Oral Debt.  Where there has been no written agreement or evidence of the debt, suit must be commenced within 3 years, usually measured from the date that the debt was incurred.  [A.R.S. �12-543(1)]
• Leases.  An action for default under a lease, including breach of warranty or indemnity, must commence within 4 years after the cause of action accrues.  [A.R.S. �47-2A506(A)]

Credit reporting agencies are governed by Federal Law.  Generally, credit information may be reported for 7 years.  The governing law, 15 U.S.C. � 1681c (renumbered as � 605), can be viewed at the Federal Trade Commission's site, Fair Credit Reporting Act.

[11-10-02]

This page was last revised: 10/11/16