We recommend consulting with bank counsel, but in our view, any applicable statute of limitations governing your ability to collect the debt likely has expired or is about to expire. Under Illinois law, different statutes of limitations apply depending on the basis for collecting on the debt. For example, actions to collect debts based on an oral agreement with your bank generally have a five-year statute of limitations. In contrast, actions to collect debts based on a written contract (such as your account agreement) generally have a ten-year statute of limitations. (Note that there are several other statutes of limitations for different types of debt — none of which appear to apply here — such as a three-year statute of limitations for certain debts arising out of negotiable instruments and a seven-year statute of limitations for judgment debts.)

In this case, the debt likely is based on your written account agreement, which typically contain provisions regarding the customer’s liability for overdrawn accounts. Consequently, the ten-year statute of limitations would apply, and your bank would have little or no time left to collect on the debt. Therefore, you may wish to move quickly to discuss your options with your bank counsel.

For resources related to our guidance, please see:

• 735 ILCS 5/13-205 (“Five year limitation. Except as provided in Section 2-725 of the ‘Uniform Commercial Code’, approved July 31, 1961, as amended, and Section 11-13 of ‘The Illinois Public Aid Code’, approved April 11, 1967, as amended, actions on unwritten contracts, expressed or implied, or on awards of arbitration, or to recover damages for an injury done to property, real or personal, or to recover the possession of personal property or damages for the detention or conversion thereof, and all civil actions not otherwise provided for, shall be commenced within 5 years next after the cause of action accrued.”)

• 735 ILCS 5/13-206 (“Ten year limitation. Except as provided in Section 2-725 of the ‘Uniform Commercial Code’, actions on bonds, promissory notes, bills of exchange, written leases, written contracts, or other evidences of indebtedness in writing and actions brought under the Illinois Wage Payment and Collection Act shall be commenced within 10 years next after the cause of action accrued; but if any payment or new promise to pay has been made, in writing, on any bond, note, bill, lease, contract, or other written evidence of indebtedness, within or after the period of 10 years, then an action may be commenced thereon at any time within 10 years after the time of such payment or promise to pay.”)

• 735 ILCS 5/13-208(a) (“Except as herein provided, no judgment shall be enforced after the expiration of 7 years from the time the same is rendered, except upon the revival of the same by a proceeding provided by Section 2-1601 of this Act; but real estate, levied upon within the 7 years, may be sold to enforce the judgment at any time within one year after the expiration of the 7 years. A judgment recovered in an action for damages for an injury described in Section 13-214.1 may be enforced at any time. Child support judgments, including those arising by operation of law, may be enforced at any time.”)

• Illinois UCC, 810 ILCS 5/3-118(g) (“Unless governed by other law regarding claims for indemnity or contribution, an action (i) for conversion of an instrument, for money had and received, or like action based on conversion, (ii) for breach of warranty, or (iii) to enforce an obligation, duty, or right arising under this Article and not governed by this Section must be commenced within 3 years after the cause of action accrues.”)