Statute of Limitations on Debt in Ohio: The 6-Year Rule and the Credit Card Twist

Ohio’s main deadline for suing over a written contract is six years. For many consumer debts, though, the real question is which deadline applies and when the clock started. Credit card debt adds a twist: because of Ohio’s borrowing statute , a shorter deadline from another state can control.

Written contracts: six years

Ohio law says an action on “an agreement, contract, or promise in writing” must be brought within six years after the claim accrued [1]. A loan with a signed promissory note is the typical example. The six-year rule took effect June 16, 2021; before then, the deadline was eight years [1].

For written-contract claims that accrued before June 16, 2021, the deadline is six years from that date or the end of the old eight-year period, whichever comes first [1]. So for an older debt, the right date depends on exactly when you defaulted.

When the clock starts on consumer accounts

For a claim arising out of a consumer transaction , Ohio law sets the start date: the claim accrues 30 calendar days after the date of the last charge or payment by or for the consumer, whichever is later [3]. That means a payment on an old account can move the start date forward.

Credit cards: the out-of-state twist

Many credit cards are issued by banks based in other states. Ohio’s borrowing statute, R.C. 2305.03(B), says a case can’t go forward in Ohio if the claim accrued in another state and that state’s deadline has run, or if Ohio’s has [2].

In Taylor v. First Resolution (2016), the Supreme Court of Ohio applied this to a credit card. It held that the claim accrued in Delaware, where the bank was and where payments were due, so Delaware’s three-year deadline applied instead of Ohio’s longer one, and the debt buyer’s lawsuit was too late [2]. Where your card’s claim accrued depends on your account’s details, so the deadline isn’t the same for every card.

The court also held that filing a lawsuit on a time-barred debt can violate both the federal Fair Debt Collection Practices Act and Ohio’s Consumer Sales Practices Act, and that debt buyers collecting card debt are covered by the Ohio act [2].

What “time-barred” means

A debt is time-barred once the deadline to sue has passed. You may still owe it, and a collector can still contact you, but under federal rules the collector can’t sue or threaten to sue you over it [5].

If you’re sued anyway, don’t ignore it. The deadline is a defense you generally have to raise yourself [5]. Read the summons, answer on time, and say the debt is too old. If you don’t respond, the court can enter a judgment against you.

The credit report clock is different

How long a debt can stay on your credit report is a separate federal rule. Under the Fair Credit Reporting Act, collection and charged-off accounts generally can’t be reported once they’re more than seven years old, with the seven years starting 180 days after the delinquency began [4]. Paying, settling or being sued doesn’t reset that date.

If an old account is still on your report after that, you can dispute it with the credit bureaus for free.

Where to get help

• Legal aid: Ohio’s legal aid programs can help eligible people answer a debt lawsuit.
• Consumer Financial Protection Bureau (consumerfinance.gov): takes complaints about debt collectors [5].
• A consumer attorney: worth a call if you’re sued on an old debt, especially a credit card from an out-of-state bank.