Contract

• The statute of limitations on collection of debt is based on whether the debt is considered an oral or written contract. Each has a different statute of limitations. In Illinois, credit cards are considered to be oral contracts.
  
  

Case Law

• In 2009, the Illinois Appellate Court heard the case of Portfoliio Acquisitions LLC v Feltman in which the defendant argued that credit cards did not fit the legal definition or structure of written contracts and therefore should be subject to the statute of limitations of oral contracts. Feldman won.
  
  

Oral Contracts

• In Illinois, an oral contract is subject to a five-year statute of limitations. Once the debt reaches the five-year limit it is time-barred debt and you can no longer be sued.