If a collector is chasing you over an old credit card, store card or personal loan, the first question is whether the debt is too old to sue on. In New York, the answer for most consumer credit debts is three years, and once that time is up, paying a little doesn’t reset it.
At a glance
- Deadline to sue
- 3 years for consumer credit debts [1]
- In effect since
- April 7, 2022 (it was 6 years before) [3]
- Does a payment restart it?
- No, not after the 3 years have run [1]
- Interest on a court judgment
- 2% a year on consumer debt, not 9% [4]
- Credit report
- About 7 years from first delinquency, separately [5]
The Consumer Credit Fairness Act
New York changed the rules for debt lawsuits with the Consumer Credit Fairness Act, signed in November 2021 (Chapter 593 of the Laws of 2021) [2]. The biggest change: a lawsuit over a consumer credit transaction against the borrower must be started within three years, down from six [1][2]. The New York Attorney General confirmed the three-year limit took effect April 7, 2022 [3].
The law also says that once the three years run out, a later payment, a written or spoken acknowledgment of the debt, or any other activity on the account does not revive or extend the deadline [1].
| Rule | Before the change | Now |
|---|---|---|
| Time to sue on consumer credit debt | 6 years | 3 years (since April 7, 2022) |
| Interest on a consumer debt judgment | 9% a year | 2% a year |
What changed for debt lawsuits
The same law made collection lawsuits harder to win by default. Lawsuits filed after the law took effect must include more about the debt [2][3]:
- The original creditor’s name, the last four digits of the account, and the date and amount of the last payment.
- An itemized breakdown of what’s being claimed, and the chain of ownership if the debt was sold.
- A copy of the contract (or, for a credit card, the charge-off statement).
The court also mails you a separate notice about the case, and a default judgment can’t be entered until at least 20 days after that notice is mailed. A collector asking for a default judgment must state it has reason to believe the deadline to sue hasn’t passed [2].
The credit report clock is different
How long a collector can sue and how long a debt stays on your credit report are two separate rules. Under the federal Fair Credit Reporting Act, most accounts placed for collection or charged off can’t be reported more than seven years after the delinquency, with the clock starting 180 days after the account first went delinquent [5]. A New York lawsuit, a payment or a settlement doesn’t restart that date.
If an old account still shows up after that, you can dispute it with the credit bureaus directly, for free.
If a collector contacts you about an old debt
- Find the dates. When was your last payment, and when did the account go into default? Your old statements or a free credit report can help.
- Ask for proof in writing. Federal rules require collectors to send you details about the debt, and a notice must say clearly if the debt is too old to sue on [3].
- Don’t pay just to make calls stop until you know the facts. In New York a payment won’t revive a time-barred consumer debt, but money paid is money gone.
- Get help if you’re sued. Free legal help is available through legal aid organizations across the state, and the New York Attorney General and the CFPB take complaints about collectors.
Sources
- N.Y. CPLR § 214-i (three years for consumer credit transactions; payments don't revive)
- NY Senate: S153 of 2021, Consumer Credit Fairness Act (Chapter 593)
- NY Attorney General: Letter to debt collectors on the CCFA and Regulation F (March 23, 2022)
- N.Y. CPLR § 5004 (2% interest on consumer debt judgments)
- 15 U.S.C. § 1681c (Fair Credit Reporting Act, how long items stay)
Common questions
How long does a creditor have to sue on a credit card debt in New York?
Generally three years for consumer credit debts, under CPLR 214-i, which took effect April 7, 2022. Before that the limit was six years.
Does making a payment restart the statute of limitations in New York?
Not once the three years have run out. For consumer credit debt, a later payment, a written or spoken acknowledgment, or other activity on the account doesn't revive or extend the deadline.
Does the 3-year limit take a debt off my credit report?
No. Credit reporting is a separate federal rule: most collection and charged-off accounts come off about seven years after the original delinquency (seven years plus 180 days), whether or not you're sued.