Found an issue on this page? Let us know and we will look into it as soon as possible.
Statue of limitations on overdrawn checking account and on a returned check, two different sitations
Anonymous2 views1 answers
I already know in Arizona that written contracts have a 6 years SOL and open or oral contracts is 3 years. but under what type of contract does a closed overdrawn checking account falls into and how about a returned check? I've been reading and it seems they both fall under the open accounts 3 years but i need to make sure. I found a couple of things on my credit for an account that I never had or opened and a bad returned check that I didn't write, both are 4 years old and I want to dispute it as not mine, I don't want to get sued and that's why i want to know if it falls under a written contract or if it's just like a credit card "open account" in this case 3 years sol in arizona.
You are correct that the Statute of Limitations for contracts in writing is 6 years, and for oral contracts, or open or stated accounts is 3 years. But you may not know that on April 21, 2011 the law regarding contracts changed to make the 6 year SOL applicable to credit cards as well. See, ARS 12-548. This law became effective as of July 21, 2011. The new statute advises that the definition of what is a credit card is the same as in 13-2101, the criminal statute. That definition is likely broad enough to include an overdraft line of credit.
Although the change just happened, the sponsors of the bill couched it in terms of a clarification. So the problem is that we do not yet know if the Arizona Supreme Court will find that it was only a clarification and thus the SOL for credit cards was always 6 years, or whether it was a change to existing law, and not retroactive. Unfortunately, this question just cannot be answered for sure for you.
The written check is a different issue. There are two important considerations: criminal liability and civil liability. On the Criminal side, a bad check for less than $5,000 is a misdemeanor, which has a 1 year SOL, and for $5,000 or more is a class 6 felony, with a 7 year SOL. On the civil side, it depends on the claim the holder makes. It could be fraud, with a 3 year SOL, or theft or conversion, with a 2 year SOL. It is not itself a contract, but depending on the purpose of the check it may be the writing needed to establish a contract. Also, if the party to whom the check was presented issued a proper notice that the check was bad, the party may be entitled to double damages.
