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Time-barred debt

Time-barred debt — A time-barred debt is a debt for which the applicable statute of limitations has expired, and Regulation F flatly prohibits a debt collector from bringing or threatening to bring legal action to collect it.

The definition and prohibition sit at 12 C.F.R. § 1006.26(a)(2) and (b), effective November 30, 2021; the ban carries no knowledge or intent element, so a good-faith miscalculation of the limitations period is still a violation. The rule excepts proofs of claim filed in bankruptcy. Earlier CFPB practice went further by contract: the September 9, 2015 Encore consent order required specific scripted disclosures on out-of-statute accounts, including "The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it." Which state's limitations period applies, and whether a partial payment revives it, remain matters of state law that Regulation F does not resolve.

Primary sources

  1. 12 C.F.R. § 1006.26; In re Encore Capital Grp., 2015-CFPB-0022 (Sept. 9, 2015)

See also

Where this appears

This is an informational reference, not legal advice, and using it creates no attorney-client relationship. Limitations periods turn on facts this page cannot know — which state's law governs, the contract type, when the claim accrued, and whether anything tolled or revived it. Confirm against the primary source and your own counsel before acting.