Statute of Limitations on Debt in New York — Is It Too Late to Sue You?

What Is the Statute of Limitations on Debt in New York?

In 2021, New York enacted the Consumer Credit Fairness Act, which reduced the statute of limitations on consumer credit transactions — credit cards, medical debt, personal loans — from 6 years to 3 years. This means a creditor has only 3 years from the date of your last payment to file a lawsuit against you in New York.

When Does the Clock Start?

The 3-year clock typically starts from the date of your last payment on the account, or the date the account first became delinquent — whichever is later. If you made no payments, it may start from the date the account was charged off. Check your credit report and any statements you have to identify the exact date.

What Resets the Clock?

In New York, making a payment on a time-barred debt does not automatically restart the statute of limitations clock. However, a written acknowledgment of the debt may. Do not make any payment or send any written acknowledgment of an old debt without fully understanding the implications first.

How to Raise This Defense

If the statute of limitations has expired, you must raise it as an affirmative defense in your written answer. On the NY consumer credit answer form, check Defense Number 10: "Statute of limitations: the time has passed to sue on this debt." Simply having the statute expire does not automatically dismiss the case — you must assert the defense.

Suing on Time-Barred Debt May Violate the Law

Filing a lawsuit on a time-barred debt — or even threatening to sue — may violate the Fair Debt Collection Practices Act (FDCPA) and New York's General Business Law. If this happened to you, you may have a counterclaim worth $1,000 in statutory damages plus attorney's fees.

Debt and Your Credit Report

Even if a debt is time-barred from lawsuit, it may still appear on your credit report for up to 7 years from the date of first delinquency. The statute of limitations only affects the right to sue — not credit reporting.