Florida Payday Loan

Florida Payday Loan Statute of Limitations

Payday loans enable borrowers to borrow money against their upcoming salary in order to obtain cash for unexpected expenses. On the other hand, the majority of companies that provide payday loans have extremely high interest rates, and the borrower may find that he is unable to repay the loan when he next gets paid. When a borrower of a payday loan fails to repay the debt, the lender has the right to pursue collection actions against the borrower. In most circumstances, Florida only offers lending institutions a short period of time to complete this process.


The statue of limitations for unpaid debts in Florida is five years, according to the state’s legal code. If you do not repay your payday lender, the lender has the right to use the legal system to collect the debt from you after a period of five years from the day the loan was incurred. Even after the period covered by the statute of limitations has passed, the payday lender may still attempt to collect the debt through alternative means. These may include making telephone contact with you or employing the services of a collection agency.


If you are sued by a payday lender and the payday lender wins their case, the court will enter a judgement against you. A court’s order to pay a particular sum of money is referred to as a judgement. After a judgement has been entered against a debtor by a court in Florida, creditors have the opportunity to pursue collection of the judgement for a period of twenty years. Therefore, if your payday lender sues you within the period of five years following the default on your loan and gets a judgement against you, he can continue to attempt to collect the judgement amount for the next 20 years. This applies even if the lawsuit was filed more than five years after the default.

Conduct That Is Not Allowed

In the state of Florida, payday lenders are not permitted to file criminal charges against a debtor for non-payment of the debt. This includes bringing criminal charges against the debtor under bad check laws. In addition, creditors or collection agencies are not permitted to threaten the debtor with arrest under regulations governing returned checks if the debtor does not repay the amount. When trying to coerce a debtor into paying a debt, creditors and collection agencies are generally prohibited from making bogus threats.

The Cancellation of the Debt

In the event that the debtor leaves the state of Florida, the statute of limitations on the obligation is tolled, which means that it is put on hold until such time as the debtor returns. Therefore, if a debtor defaults on a payday loan and then leaves the state for five years, his creditor can still sue him when he returns to the state even if he has been gone. In addition, the clock on the statute of limitations starts over whenever the debtor makes any kind of payment toward the debt. For instance, if a debtor owes two hundred dollars and makes a payment of twenty dollars, the statute of limitations will be reset after four and a half years.

The Statute of Limitations on Debt Recovery in Missouri

As is the case in all states, Missouri places time constraints on the amount of time creditors and collection agencies have to pursue you for outstanding debts. The name for this window of opportunity is the statute of limitations, and its parameters vary from state to state. In the state of Missouri, it can range anywhere from two years all the way up to ten years depending on the type of debt. If a creditor waits too long before taking legal action against you, he will lose the right to do so.

Bad Checks

In the state of Missouri, it is considered a misdemeanour to write a check for less than $500 that is subsequently returned because it was drawn on insufficient funds. It is penalised by up to one year in jail time, a fine of up to one thousand dollars, or both of these penalties. It is a felony if the check that was returned was for more than $500 or if it was returned because the account was closed. Additionally, it is a felony if a person writes several bad checks over the course of ten days that total more than $500.

A conviction on a felony charge of passing a bad check carries a potential sentence of up to five years in prison, a fine of up to $5,000, or both. The statute of limitations for filing a criminal charge in the state of Missouri for passing a bad check is one year for a misdemeanor and three for a felony. According to Missouri’s statute of limitations for fraud, the person who is the recipient of the check has ten years to file a lawsuit against the person who wrote the check.

Debt That Is Not Secured

Credit that is extended to a debtor without the use of collateral constitutes an unsecured debt. Examples of unsecured debt include credit cards and personal loans. In the state of Missouri, creditors have a window of ten years to file a lawsuit against a debtor who has a written contract. It is possible that the written contract is a cardholder agreement for a credit card or a promissory note for a loan. If the agreement about the payment of money was made verbally, the statute of limitations term is reduced to five years. For instance, if Jane Doe approaches John at lunch and requests a loan of one hundred dollars, and John agrees, John has just five years to file a lawsuit against Jane if she does not repay the amount.

Guaranteed Obligation

The use of a home’s equity or a car’s value as collateral is typical of secured obligations like mortgages and auto loans. In the event that the debtor is unable to fulfil his duty, the creditor has the right to take ownership of the collateral. For instance, if a homeowner is unable to keep up with her mortgage payments, the lender has the legal right to foreclose on the property and seize ownership of it. If the value of the collateral is less than the total amount owed, the creditor may file a lawsuit against the debtor to collect the difference. In Missouri, creditors have the same 10-year window as for the filing of litigation related to other types of debts based on written contracts.

Taxes Levied by the States

If you have a tax debt to the state of Missouri, the state has five years from the date you filed your return to collect any unpaid earnings tax from you. Other state taxes each have a three-year time limit on the statute of limitations. For example, if you owe state income taxes, the state has three years from the date you filed your tax return or the date your return was due to pursue collection of the unpaid debt. This time period begins on whichever date is later. This time limit may be extended in some circumstances, such as when a state return is not submitted at all or when a return that is known to be fraudulent is submitted.

How Long Can Creditors Collect on a Payday Loan?

Instant cash is provided via payday loans in the time between paychecks; nevertheless, the loan must be repaid together with interest on the next pay period. Because of the exceptionally high interest rates that payday lenders demand, many states have made it illegal for residents to get these types of loans, while other governments have extensively regulated them. In the event that you do not repay a payday lender, the lender may file a lawsuit against you to collect the debt, so long as the statute of limitations for debt collection in your state has not passed.

Different jurisdictions have different legal requirements.

The legality of payday loans and the amount of time creditors have to collect on payday loans are both issues that are resolved by state laws. The ability of payday lenders to file criminal charges against borrowers who do not repay their loans in accordance with the terms of the agreement is also governed by state legislation. For instance, payday lenders in the state of California are only allowed to charge debtors a fee of $15 if their check is returned, whereas in the state of Florida, payday lenders are allowed to recover up to three times the amount that is owing, plus any attorney’s costs that may be incurred.

Conflicts in the Courts

In the majority of states, there is more than one type of statute of limitations for debts. Because borrowers are required to sign a loan agreement when they take out a payday loan, the debts associated with payday loans typically fall within the category of obligations that are consented to by written contract. Therefore, the payday lender has no choice but to initiate a lawsuit against you in order to recover any outstanding payday loans within the time limit established by the rules of your state for collecting debts of this nature. After the statute of limitations has passed, creditors are still allowed to make contact with you in order to work out alternative payment plans; but, they are unable to use the legal system in an effort to collect the debt.

Charges Against the Offender

When borrowers of payday loans fail to repay their loans, the lenders cannot pursue criminal charges against those borrowers in the majority of states. Payday lenders in some states are allowed to seek charges for passing a bad check if the check of the debtor is returned because it was written on insufficient cash. After a debtor is found guilty of passing a bad check, the court may decide that restitution would be appropriate in the form of the debtor repaying the payday loan. In these places, the statute of limitations for issuing bad checks would determine how long the lender has to bring such accusations before they become statutes of limitations.


Payday lenders have a poor reputation among the majority of judges in the United States because they charge extremely high interest rates and provide loans for relatively short periods of time. On the other hand, if you take out a loan with a payday lender, you will continue to be responsible for repaying the money, and you should do so as quickly as possible. Payday lenders can still report you to the credit bureaus and may sue you to recover any debt owed to them. Payday lenders can also take legal action against you. Never take out a payday loan unless you are quite certain that you will be able to repay the money on your next paycheck.

Can My Wages Be Garnished for My Husband’s Debt?

It can come as a surprise to many people, but the creditors of your spouse might be able to garnish your salary in certain circumstances. This is dependent on a number of circumstances, including the laws of the state in which you reside, the nature of the debt at hand, and the amount of money you bring in each month. In the majority of financial obligations, the creditor must first appear in court to get a judgement against your spouse and then make an official request for a court order. There are some creditors, such as the Internal Revenue Service, that do not require a judgement.

If You Live in a Community Property State

Community property laws can be found in the states of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In these states, spouses share equal responsibility for their debts and the debts of their partner. If you happen to be a resident of any of these areas, then there is a possibility that your husband’s creditors will attempt to garnish your salary in order to pay off his obligations. However, the law allows for certain exclusions. Your creditors will not be able to take legal action against you for debts that predate your marriage. In most cases, they will not be able to take legal action against you for unpaid child support. You also have the option of signing a prenuptial agreement, which should be legally binding in the majority of instances, that states you are not responsible for your husband’s debts.

If You Live in a Common Law State

The common law system is utilized by every other state. In these states, the responsibility for paying off your spouse’s debts falls solely on your spouse and not on you. This indicates that creditors will not be able to take your wages to pay for expenses incurred by your spouse. Once more, there are some notable exceptions. It is possible for creditors to come after you if, for instance, you co-sign a loan or your spouse puts the debt on a credit card that the two of you share. Creditors may also be entitled to recover from you for debts made to pay for essentials such as food and shelter, especially if you have defaulted on such payments.

If You Have a Joint Account

Paychecks and bank accounts are both subject to garnishment by creditors. When you put your paycheck into an account that is held jointly with your spouse, the money in that account may be subject to his debtors. It is possible, according to the rules of Washington and California, for your spouse’s child support requirement to be paid from a joint bank account; however, if you can demonstrate which portion of the money belongs to you, then that cash is off-limits. The risk associated with joint accounts is highly variable from one state to the next.

Restriction on the Use of Garnishment

There are safeguards in place to protect you in the event that the creditor is successful in garnishing your salary. Your paycheck cannot be garnished in most cases if the amount of your after-tax wages is lower than thirty times the amount of the federal minimum wage. According to the legislation enacted by the federal government, a creditor has the legal right to seize anything that is greater than that amount or 25 percent of your earnings after taxes, whichever is lower. In some states, a larger portion of a worker’s wages is shielded from being garnished. In most cases, the total amount that can be garnished from your paycheck must fall below these limits, and this is true even if you have more than one creditor trying to collect from you.

What is the Statute of Limitations on Debt In Florida?

The majority of delinquent loans will not follow you around forever. The Statute of Limitations in Florida specifies the amount of time a creditor has to file a lawsuit against you in Florida courts. If a debt is older than five years, creditors typically have little chance of recovering their money.

Verbal or in Writing

It really doesn’t make a difference what form of debt you’re dealing with, whether it’s a credit card bill, a payday loan, or an overdue medical bill most of the time. Not the nature of the debt itself but the sort of contract is what really matters here. If the debt is the consequence of a written contract or agreement, the creditor has five years to collect, unless the contract stipulates a shorter time-frame, in which case the creditor has less time. If the only record of the agreement is an oral one, then the debt cannot be collected after only four years have passed.

If you make an effort to avoid paying your debts, the clock on the statute of limitations will be stopped because of this tolling provision. For instance, if you relocate out of the state for six months, which prevents a debt collector from serving you with a court summons, this may add another six months to the total amount of time until the obligation is considered discharged.

Special Cases

Some debts are handled in a manner that is distinct from others:

•You have a four-year window in which to settle any debts that were incurred as a result of injuries or property damage that you caused.

•Tax liens, which are essentially a claim on your property to pay for past-due taxes, can remain in place for as long as twenty years, but they could be lifted earlier depending on the type of tax obligation.

•There is no statute of limitations on the state’s ability to sue you to collect court fees or fines; they can do so whenever they choose.

• If your creditor has obtained a judgement from a court in Florida stating that you owe her money, she has a total of twenty years until the judgement is rendered null and void. She has the legal right to garnish your salary or place a lien on your property until that time. After only five years, the verdict will be rendered null and void by courts located in other states.

•If the debt is the result of fraud, the clock on the statute of limitations begins ticking when the victim discovers the fraud or should have discovered it if exercising reasonable diligence. This is in contrast to the situation where the statute of limitations begins ticking when the fraud actually took place. However, after 12 years have passed since the debt, it is no longer collectible regardless of when the victim discovered it.

Zombie Debts

After a debt has been discharged, certain creditors or debt collectors may try to resuscitate it as a zombie debt and put pressure on you to pay it, despite the fact that you are no longer obligated to do so. A debt collector can even sue you for a time-barred debt. You can win by demonstrating to the judge how long the debt has been outstanding. If you choose to disregard the court summons, however, the judge may find in favor of the collection agency as a matter of default.

In some areas, your offers or pledges to pay the obligation can cause the statute of limitations on the debt to start over. According to the statutes of the Sunshine State, this only applies in the state of Florida if it is written in writing and signed by both parties.

What Makes a Fully Secured Creditor Different from a Partially Secured Creditor

When you try to file for bankruptcy or consolidate your debt, you will hear a lot of discussion about your creditors and how they are categorised. This is because both of these processes involve dealing with your financial obligations. The classification of a creditor dictates the actions that can be taken to collect a debt as well as the function that the creditor plays in the formulation of a bankruptcy strategy. There are three possible categories for your debtors: unsecured, somewhat secured, and completely secured.

Creditor Who Is Fully Secured

A creditor is said to be fully secured when the debt that they are lending money for is backed up by collateral in the form of a mortgage or a lien on personal property. If you fail to make payments on a debt that you owe to a creditor who has a fully secured loan, the creditor has the legal right to seize the collateral for the loan and sell it to recoup any shortfall in payment. The majority of completely secured creditors are financial institutions that provide loans for automobiles and homes.

Creditor Who Is Only Partially Secured

A creditor is considered to be partially secured when he or she only possesses collateral to cover a portion of the debt that the debtor owes to the debtor. Some creditors with only a partial lien may have asked for collateral that they knew would only cover a portion of the debt, while others may have secured their loans with collateral whose value declined, such as real estate. Both of these scenarios could have led to the default of the loans.

Creditors Who Are Not Secured

Unsecured creditors are those who lend money but don’t have anything to put up as collateral to back up their loans. If you take out a loan from an unsecured creditor and don’t pay it back when you’re supposed to, the creditor can’t take any of your belongings as repayment for the obligation. Instead, in order to seize your property or wages, he is required to first secure a court decision and then a writ of execution. Because of the higher level of risk associated with unsecured loans, the interest rate that is applied to the money that you borrow from unsecured creditors is typically higher.


The manner in which a creditor is dealt with by the court during bankruptcy proceedings is determined by the type of creditor they are. For instance, if you file for bankruptcy under chapter 13, the court will normally separate the claims made by your partially secured creditors into secured and unsecured categories. You are required to pay your secured debts in full with interest, but in most cases, the court will let you pay your unsecured creditors only the amount that you are able to afford. However, the court has the discretion to give some types of unsecured debts, such as back taxes, child support, or alimony payments, priority over other types of unsecured claims.

What Does Having an Outstanding Judgment Mean?

A judgment is an order from the court that states a lender or other creditor is entitled to monetary damages as a result of a debt collection litigation, and that you are responsible for paying those damages. A judgment provides additional collection rights to a creditor once it has been filed with the office of the court administrator. If you do not pay the debt in full or make payment arrangements within the first thirty days, the creditor may file an appeal against the judgment. The longer it takes to pay off a judgment that is still outstanding, the more significant and long-lasting the resulting financial ramifications are likely to become.

Charges, Along With Interest That Is Accruing

In the majority of instances, the amount you owe a judgment creditor will increase to include court expenses, and it is possible that it will also include the legal fees incurred by the creditor. The sum also includes interest that will continue to accrue on the unpaid balance from the moment the claim was filed until the debt is paid out in its entirety. The maximum amount of interest that a creditor can charge is governed by state regulations. For instance, a judgment creditor in the state of Wisconsin is permitted to charge interest at the rate of 12 percent for judgments entered prior to December 2, 2012, but they are only permitted to charge interest at the rate of 1 percent plus the prime rate of the Federal Reserve for judgments entered on or after December 2, 2012.

The applicable statute of limitations

Even though the statute of limitations on collecting an outstanding judgment typically runs for 5 to 10 years, the majority of states permit a creditor to renew the order one or more times. [citation needed] According to Nolo, there are even some states that will allow a creditor to extend an old judgment after it has already expired. For instance, a judgment that is entered in the state of Minnesota has a validity period of ten years and can be extended for an additional ten years if necessary. This may put you under a legal duty for an extended period of time or perhaps permanently.

A paid judgment is considered a public record and will continue to be listed on your credit report for at least seven years in accordance with the Fair Credit Reporting Act. However, a judgment that is still unresolved will stay on your credit record for an even longer period of time. For instance, a judgment that was recorded against you in the state of Minnesota could remain on your credit report for a period of twenty years. Even though the duty to pay the debt might be discharged if one files for bankruptcy protection, the entry will still be there.

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