What is the statute of limitations on personal loans?

In Kansas, the statute of limitations on personal loans is five years. This means that a creditor or debt collector must bring a lawsuit against a debtor within five years of the default date, or else the debt will expire and cannot be collected. The statute of limitations on personal loans is established by the Kansas Consumer Credit Code. The statute of limitations period begins on the date of default, which is usually the date of the last payment. After the five-year period has passed, the lender must release any claim to the debt and the debt collector must stop trying to collect the debt from the debtor. If a creditor or debt collector attempts to collect the debt after the five-year period has passed, the debtor can file a complaint with the Kansas Division of Financial Institutions. If the complaint is found to be valid, the debtor may be entitled to damages and attorney’s fees. It is important to remember that the statute of limitations on personal loans is not a “free pass” and does not forgive the debt. The debt remains valid, and the debtor is still obligated to pay back the loan. If the debtor does not pay back the loan, the creditor can still report the debt to the credit bureaus. The debt will remain on the debtor’s credit report for up to seven years from the date of the last payment.

Related FAQs

Can a debt collector threaten to report me to the credit bureaus?
What happens if I default on a debt repayment plan?
Does filing for bankruptcy affect my credit score?
Can a debt collector charge interest or late fees on my debt?
How do I get a judgment removed from my credit report?
Can a creditor garnish my wages?
What is a charge-off?
What is consumer debt defense law?
How can I challenge an inaccurate credit report?
Can a debt collector threaten to garnish my wages?

What is the statute of limitations on personal loans?

Related FAQs

Related Blog Posts