Montana Statute of Limitations on Debt
Montana distinguishes between open accounts and formal written contracts when setting limitation periods. Open-ended accounts like credit cards and medical bills have a five-year SOL; formal written contracts carry eight years.
| Debt Type | Statute of Limitations | |---|---| | Credit card debt (open account) | 5 years | | Medical debt | 5 years | | Auto loans (written contract) | 8 years | | Personal loans (written contract) | 8 years | | Oral contracts | 5 years | | Promissory notes | 8 years |
The SOL clock begins from the date of default or last payment. After the applicable period expires, a collector cannot obtain a judgment in Montana court. Montana requires defendants to raise the SOL as an affirmative defense — it is not applied by the court automatically.
Caution: Partial payment or a written acknowledgment of the debt can restart the SOL in Montana. Never pay toward an old account without first determining whether it's time-barred.
Montana-Specific Consumer Protections
Montana Consumer Protection Act (Mont. Code Ann. § 30-14-101 et seq.) Montana's Consumer Protection Act prohibits unfair and deceptive acts in commerce. It covers debt collection conduct and gives the Department of Justice (DOJ) enforcement authority. Consumers can also bring private lawsuits and may recover actual damages plus attorney's fees.
Montana Collection Agency Licensing Debt collection agencies operating in Montana must be licensed by the Montana Division of Banking and Financial Institutions. Operating without a license is a state law violation. Consumers can verify license status before engaging with a collector.
Montana Wage Garnishment Montana follows federal garnishment limits as a floor but has additional protections: the first $100 per week of wages is entirely exempt from garnishment. This provides additional protection for lower-wage workers facing collection judgments.
How to File a Complaint in Montana
Montana Department of Justice — Consumer Protection
- Website: dojmt.gov/consumer
- Phone: (406) 444-4500
- Online complaint form available
Montana Division of Banking and Financial Institutions
- Website: banking.mt.gov
- Phone: (406) 841-2920
- For complaints about licensed debt collectors
Federal Rights That Apply Regardless of State
- Fair Credit Reporting Act (FCRA): Dispute errors on your credit report; bureaus must respond within 30 days.
- Fair Debt Collection Practices Act (FDCPA): Collector conduct requirements.
- Fair Credit Billing Act (FCBA): Billing error rights on credit card accounts.
File at consumerfinance.gov/complaint.
Your First Action Step
Montana's eight-year SOL on written contracts is longer than most people expect. If you have an old auto loan or personal loan in collection, check the original default date carefully — it may still be within the legal window. Pull your credit reports at annualcreditreport.com, review the delinquency dates, and dispute any inaccurate information in writing by certified mail to each bureau.