Blog Summary: Florida’s four-year statute of limitations (SOL) determines when creditors can litigate, when collectors must pivot to settlement-only outreach, and how to stay aligned with federal and Florida debt collection laws. This blog explains how the statute of limitations in Florida works, what restarts or tolls it, litigation timing patterns, and how AI-driven compliance strengthens modern debt collection strategies in a high-risk regulatory environment.

Table of Contents

• The Florida Statute of Limitations on Debt

• What the Statute of Limitations Actually Means

• Florida’s Four-Year vs Five-Year Issue

• How the Statute of Limitations Works in Florida

• Tolling & Extensions: What Pauses the SOL

• How Often Debt Collectors Take Consumers to Court

• How Often Collectors Are Allowed to Call or Contact

• A Strategy Playbook for Collectors Based on Debt Age

• Can AI & Automation Keep Collectors Fully Compliant in Florida?

• KeyTakeaway

• FAQs

The Florida Statute of Limitations on Debt

Florida’s debt collection landscape is governed by two primary timelines:

• Four-year statute of limitations for most consumer debts.

• Five-year statute of limitations for written contracts.

These time limits are defined under Fla. Stat. § 95.11, as published by the Florida Legislature. For lenders, collectors, BNPL providers, utilities, healthcare networks, fintechs, and recovery teams, understanding how the statute of limitations (SOL) works is essential (Source: Florida Senate). 

The SOL does not erase a debt; it simply limits how long a creditor can file a lawsuit while still allowing compliant outreach and settlements. Because Florida categorizes written contracts, open accounts, oral agreements, and judgements differently, accurate classification is critical to avoid litigation errors.

What the Statute of Limitations Actually Means

In debt collection, the statute of limitations is the legal time limit during which a creditor or collector may file a lawsuit to enforce a debt. It does not erase the balance or end all collection efforts; it simply restricts when legal action can occur. Once this window closes, the debt becomes time-barred, still collectible through voluntary repayment, but no longer enforceable in court.

Florida’s Four-Year vs Five-Year Issue

One of the most common sources of confusion in Florida debt collection law is the difference between the four-year and five-year statute of limitations. While the distinction seems simple on paper, the actual classification depends on the type of debt, whether the obligation is written or unwritten, and the date of the last payment or default. Misinterpreting this timeline can lead to wrongful lawsuits, compliance violations, and poorly segmented portfolios.

Why the Confusion Exists

Florida does not apply a single statute of limitations to all “debt.” Instead, it assigns obligations to specific legal categories. The correct timeline depends on:

• Whether the agreement was written or oral.

• Whether the account qualifies as an open account.

• Whether the creditor can produce a signed contract.

• The date of last payment or date of default, which starts the clock.

Five-Year SOL: Written Contracts (Fla. Stat. § 95.11(2)(b))

Applies to written personal loans, auto loans, promissory notes, mortgages, medical treatment agreements, and commercial contracts.

Four-Year SOL: Oral & Open Accounts (Fla. Stat. § 95.11(3)(k))

Applies to oral agreements, open accounts (including many credit cards), lines of credit without written contracts, and miscellaneous unwritten obligations.

Special Case: Credit Cards

• Signed cardholder agreement - five-year SOL

• No signed agreement - four-year open account SOL

How the Statute of Limitations Works in Florida

Florida’s statute of limitations (SOL) determines when a creditor can legally sue to collect a debt, and the timeline begins at one of two points: the date of the last successful payment or the date of default, typically 30 days after a missed payment. 

What Actually Restarts the SOL

• A partial payment: Even a small voluntary payment resets the entire four- or five-year statute of limitations period.

• A written acknowledgment of the debt: Any written admission that the debt is owed revives the creditor’s right to sue.

• A new written promise to repay: A written commitment to resume payment restarts the SOL from the date of the promise.

• A signed repayment agreement: Signing a new or modified payment plan creates a fresh enforceable timeline for litigation.

Tolling & Extensions: What Pauses the SOL

When a borrower leaves the state to avoid service – The SOL pauses because the creditor cannot legally serve the lawsuit.

When a borrower actively conceals themselves – Hiding from service tolls the SOL until the borrower is locatable.

When bankruptcy triggers the federal automatic stay – Bankruptcy freezes all collection activity, pausing the SOL until the stay is lifted.

When the borrower signs a valid post-default extension agreement – A written, post-default agreement legally extends the existing SOL timeline.

These events temporarily pause the countdown but do not restart it.

Events That Do Not Affect the SOL

Charge-off – Purely an accounting action; it has zero impact on the legal timeline.

Debt sales or assignments – Transferring ownership does not reset or pause the SOL.

Placement with new agencies – Changing collection agencies has no legal effect on the statute of limitations clock.

Credit reporting updates – Reporting or re-reporting the debt does not influence the SOL period.

Verbal negotiations or unsigned discussions – Conversations without written acknowledgment do not pause or restart the statute of limitations.

Does Florida Require Debt Validation?

Yes. Florida follows FDCPA §1692g, requiring collectors to send a validation notice within five days of first contact and to cease collection if the consumer disputes the debt until verification is provided.

The Florida Debt Collection Act (FCCPA) does not impose additional validation procedures but extends liability to original creditors and third-party collectors who continue collection without proper verification. Full FDCPA compliance is essential to avoid exposure under Florida debt collection laws.

How Often Debt Collectors Take Consumers to Court

• 7–15% of debts eventually become lawsuits – Only a small portion of accounts are litigated, but those that are tend to be strategically selected.

• Litigation spikes around 2.5–3.5 years after default – Creditors typically sue just before the statute of limitations expires to preserve enforceability.

• Lawsuits are most common as the SOL window is about to expire – Approaching the four- or five-year deadline triggers accelerated litigation to avoid losing legal rights. 

Note: The exact percentages vary by creditor type and portfolio mix.

How Often Collectors Are Allowed to Call or Contact

CFPB Regulation F

• No more than 7 call attempts in 7 days per debt – Exceeding seven attempts in a week is presumed harassment under federal law.

• No calls before 8 AM or after 9 PM – Contacts outside this window are automatically considered inconvenient and likely unlawful.

FDCPA & FCCPA

• Contact consumers at unreasonable times – Collectors must avoid any outreach that could be viewed as disruptive or intrusive.

• Harass, abuse, or threaten – Aggressive language or repeated pressure is strictly prohibited.

• Call at work after being asked not to – Once a consumer objects, workplace contact becomes a violation.

• Misrepresent legal rights – Debt collectors cannot exaggerate consequences or imply powers they do not have.

• Imply litigation on time-barred debt – Suggesting legal action on expired debt is considered deceptive and unlawful.

Note: Most compliance failures in Florida do not happen because teams misunderstand the four-year rule. They happen because aging portfolios are not dynamically segmented as the SOL approaches.

A Strategy Playbook for Collectors Based on Debt Age

0–30 Days Past Due - Remove Friction: Use smart reminders, expired-card fixes, one-tap payment links, and digital wallet options. Most recoveries occur here when friction is minimized.

31–90 Days - Segment & Personalize: Apply risk scoring, contactability analysis, sentiment detection, and multichannel outreach. Borrower intent varies significantly.

91–180 Days - Payment Plans & Negotiation: Offer affordability-based schedules, structured settlements, multilingual support, and formal dispute handling. This stage demands precision and empathy.

180–365 Days - Pre-Litigation Review: Verify documentation, ensure chain-of-title integrity, review SOL timelines, and determine whether litigation or settlement is appropriate.

3.5–4 Years - SOL-Sensitive, Compliance-First Outreach: Suppress litigation language, avoid ambiguous phrasing, and use settlement-only strategies. Time-barred debt requires strict compliance safeguards.

Can AI & Automation Keep Collectors Fully Compliant in Florida?

Yes. Florida’s regulatory complexity makes manual compliance oversight unsustainable. Modern AI ensures:

• Real-time compliance auditing of all SMS, email, and call scripts – AI reviews every outbound message before it’s sent to prevent FDCPA, FCCPA, or time-barred violations.

• Automated contact caps aligned with Regulation F – The system enforces the 7-in-7 rule automatically, blocking excess outreach attempts.

• Time-zone safe-hour enforcement – AI ensures all communications occur only within legally permitted hours based on the consumer’s location.

• Do-not-call and consent management – The platform instantly honors opt-outs, revocations of consent, and workplace restrictions without manual oversight.

• Instant dispute detection and automatic pause of outreach – AI recognizes dispute language and halts all communication until validation steps are completed.

• Sentiment-aware messaging to reduce FCCPA exposure – Messaging adjusts dynamically to consumer tone, preventing escalation or perceived harassment.

• Immutable audit trails for every communication – Every interaction is logged securely in real-time, providing defensible evidence for audits, disputes, and regulatory reviews.

Key Takeaway: Platforms like FinanceOps embed compliance logic directly into workflow execution, helping teams enforce Florida’s SOL, FDCPA, FCCPA, and Regulation F rules automatically. 

Schedule a 20-minute demo to see how embedded agentic AI-powered compliant infrastructure reduces litigation risk and operational exposure.

FAQs

When does the statute of limitations clock start?

Typically on the date of last payment or default that triggers the creditor’s right to sue.

Does making a payment restart the SOL?

Yes. A voluntary payment may reset the limitations period under Florida law.

Can a collector sue after the SOL expires?

A lawsuit may be filed, but the debt is time-barred and the consumer can assert the statute of limitations as a defense.

How often can collectors call in Florida?

Under Regulation F, no more than 7 attempts in 7 days per debt, and no calls before 8 AM- after 9 PM.

What must collectors never do with time-barred debt?

They must not imply litigation, misrepresent legal rights, or use deceptive tactics to induce payment.