Problems Regarding the Statute of Limitations for Credit Card Debt Lawsuits Under the Civil and Commercial Code, Section 193/34 (7)

Abstract

This academic article aims to analyze the problem of the statute of limitations for credit card debt claims under Section 193/34 (7) of the Civil and Commercial Code by using the statute of limitations for credit card debt claims under Section 193/34 (7) of the Civil and Commercial Code and the statute of limitations for credit card debt claims in all 50 states of the United States, which currently has the highest total and average debt per capita in the world. This analysis examines the problems of the two-year statute of limitations, the issue of credit card debt claims becoming time-barred, and the lack of opportunity for debtors to request debt restructuring. The results of this analysis will be used to improve Section 193/34 (7) of the Civil and Commercial Code to ensure creditors receive repayment without the statute of limitations expiring and to provide debtors with greater opportunities to request debt restructuring. The analysis found that, generally speaking, credit card debt has a statute of limitations of 2 years from the date of the last default payment, according to the Civil and Commercial Code, Section 193/34 (7). When compared to the 50 US states that set the statute of limitations from 3 to 10 years, and the statute of limitations under the Civil and Commercial Code, Section 193/30 (10-year limitation) and Section 193/33 (5-year limitation), this is too short a period for creditors to rush to file a lawsuit before the 2-year limitation period expires. In most cases, creditors are at a disadvantage in filing a lawsuit because the statute of limitations has expired, and debtors themselves lack the opportunity to request debt restructuring to pay the debt to the creditor. Although the law sets a 2-year statute of limitations to prevent creditors from suing consumers after the evidence of the debt has been destroyed or lost for a long time, if the statute of limitations were increased from 2 years to 3 years, by making the debt longer, it would give creditors more time to file a lawsuit. and extends the time for debtors to make informed decisions about debt restructuring or finding money to pay off debts. In addition, it will help reduce the costs of litigation and debt collection for creditors. Therefore, in order to solve the problem of the statute of limitations for credit card debt claims in the long term, it is proposed that the statute of limitations for credit card debt claims under the Civil and Commercial Code, Section 193/34 (7), which sets out a two-year limitation period, be amended by adding Section 193/36 which stipulates that “the right of a credit card business operator to make a claim shall be subject to a three-year statute of limitations.”