Arizona credit card debt can be pursued up to six years

The Arizona state Senate recently voted to clarify the length of time in which defaulted credit card debt can be pursued by its original lender or a collection agency as six years, according to a report from the Yuma Sun. However, critics say that the original lenders often sell these outstanding debts to collections agencies within a far smaller time period than that.

"The institution ends writing them off and then selling the debt for pennies on the dollar to these out-of-state debt buyers," State Sen. Paula Aboud of Tucson told the newspaper. "Some years later this debt buyer jumps on them for a $2,000 debt that is now $8,000 to $10,000 because of the six-year extended period of time where the interest and fees has accumulated."

Collections agencies pursuing defaulted credit card debt were recently named the top consumer complaint by the Federal Trade Commission because many engage in harassing tactics.