Kentucky Statute of Limitations on Debt
Kentucky applies different limitation periods depending on the type of obligation. Open accounts like credit cards expire after five years, while formal written contracts — personal loans, auto loans, promissory notes — carry a ten-year SOL. This distinction is critical.
| Debt Type | Statute of Limitations | |---|---| | Credit card debt (open account) | 5 years | | Medical debt | 5 years | | Auto loans (written contract) | 10 years | | Personal loans (written contract) | 10 years | | Oral contracts | 5 years | | Promissory notes | 10 years |
The ten-year SOL on written contracts is one of the longest in the country. If you have an old personal loan or promissory note, collectors may have a legally valid claim for far longer than you expect. The SOL clock runs from the date of default or last payment.
Kentucky-Specific Consumer Protections
Kentucky Consumer Protection Act (KRS Chapter 367) Kentucky's consumer protection statute prohibits unfair, false, misleading, or deceptive acts in trade. The Attorney General can investigate and prosecute violators, and consumers have a private right of action for actual damages plus attorney's fees.
Kentucky Collection Agency Act Kentucky requires debt collection agencies to be licensed with the Kentucky Department of Financial Institutions (KDFI). If a collector does not hold a valid license, they may be acting illegally. You can verify license status at kfi.ky.gov.
Kentucky Wage Garnishment Kentucky follows federal garnishment limits: 25% of disposable earnings or the amount over 30 times the federal minimum wage, whichever is less. Courts in Kentucky can reduce these amounts in demonstrated hardship situations.
How to File a Complaint in Kentucky
Kentucky Attorney General's Office — Consumer Protection Division
- Website: ag.ky.gov/consumers
- Phone: 1-888-432-9257
- Online complaint form available
Kentucky Department of Financial Institutions
- Website: kfi.ky.gov
- Phone: (800) 223-2579
- For complaints about licensed collection agencies
Federal Rights That Apply Regardless of State
- Fair Credit Reporting Act (FCRA): Free annual reports; dispute inaccurate items within 30 days.
- Fair Debt Collection Practices Act (FDCPA): Prohibits collector misconduct.
- Fair Credit Billing Act (FCBA): Billing dispute rights on revolving accounts.
File at consumerfinance.gov/complaint.
Your First Action Step
If you have a personal loan, auto loan, or promissory note debt in Kentucky, understand that it may remain legally actionable for up to ten years. Don't assume it's time-barred without confirming the debt type and exact default date. Pull your credit reports at annualcreditreport.com. If you see an inaccurate original delinquency date — especially one that makes debt appear newer than it is — dispute it in writing to each bureau via certified mail.