A statute of limitations is a statute in a common law legal system that sets forth the maximum period of time, after certain events, that legal proceedings based on those
events may be initiated.
If you have a account in collection, why should you care about the Statute Of Limitations?
A creditor may only bring action for the recovery of debts in accordance with the statute of limitations in the Territory or State in which the debt arose. The statute of limitations on debts for services and goods is generally 6 years and three years in the Northern Territory. This means that a court will not hear an action for payment where a debt is outstanding for more than 6 years. Legal action on such debts is therefore statute barred.
How is my credit report affected by the Statute Of Limitations?
Section 2.8 of the Credit Reporting Code of Conduct, issued in accordance with section 18A of the Privacy Act 1988 (Cth), prohibits the listing of statute barred debts with a credit reporting agency. Section 2.8 of the Credit Reporting Code of Conduct provides that a credit provider must not give to a credit reporting agency information about an individual being overdue in making a payment where recovery of the debt by the credit provider is barred by the statute of limitations.