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Payday Loan Statute Of Limitations In Florida

If you are living in the state of Florida and have some very old payday loan accounts still outstanding in your name, you must first get yourself educated on the legal provisions regarding payday loan statute of limitations in Florida. Every state in the United States of America has set a certain period of time (such as one year, two year, three year etc) for payday lenders and collection agents to collect their debts. If this time period expires, the debts will no longer remain valid. Florida also has set a specific period of time, after which, lenders will not be able to collect the debts. However, there are some basic factors associated with these provisions that you must be well aware of. Following is a brief rundown on it.

Payday Debts Older Than 5 Years Are Not Valid

As per the laws regarding the payday loan statute of limitations in Florida, you legally cannot be held liable for the payments of outstanding balance due on payday loan accounts that are older than five years. However, it is very important for you to understand that this five-year time period is not calculated from the date when the loan was initially issued in your name. The statute of limitations starts from the date when the last transaction has taken place on your payday loan account. For example, if you had borrowed a payday loan five years back, but you have made some payments four months back, it will take four years and eight months more for the statute of limitations to expire. Payday lenders and their collection agents have five years to collect the debts. In order to keep the debts valid, they often try to encourage you to make a small amount of payment. Therefore, if you know that the statute of limitations is going to expire within three months, you should avoid making any payment. Once this three-month period is over, your debts will be erased automatically.

Court Judgments

As per the laws about the payday loan statute of limitations in Florida, if your lender files a civil lawsuit against you and the court issues a judgment against you, the lender will have twenty more years from the date of the judgment to collect the debt. But again, lenders have the right to file a court case against you only within the five years of stature of limitations.

Criminal Charges Cannot Be Placed Against You

It is very important for you to keep in mind that lenders can only file a civil lawsuit against you. As per the payday loan laws in Florida, lenders are legally prohibited to press criminal charges against borrowers. They cannot even persecute you under bad check laws as long as the bounced check was issued for the purpose of repayment of payday debt. In fact, lenders cannot even threaten you false that they will get you arrested if you do not make payment. Such activities are legally prohibited and you have the right not to be harassed like this. You are advised not to accept such harassment. You must immediately file a complaint with either the FTC or with your state authority.

Resetting Of Statute Of Limitations

Last, but not the least, it is also very important for you to understand that there are certain circumstances when the payday loan statute of limitations in Florida is reset. For example, if you have defaulted on a payday loan and then have left the state for five years, you can still be sued for debts when you come back. Likewise, as said earlier, making payments also resets the statute of limitations. For example, if you $2000 and have not made any payment for four years and eleven months, but if now you make a payment of $20 (or no matter how small or big it is), it will reset the statute of limitations, which was otherwise going to expire in a month.

Overall, awareness of the laws and your legal rights regarding payday loan statute of limitations in Florida is very important, especially if you are struggling with very old payday debts.


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