Understanding Costa Rica’s Statute of Limitations for Receipts, Credit Cards, Promissory Notes, and Bank Loans

Costa Rica’s Debt Prescription Rules: How Long Do Diffrent Debts Expire and How to Claim the Statute of Limitations

By Archys - The Nation

---

When a collection agency sends a threatening “Pay today or we will sue you” notice, many Costa Ricans wonder whether the debt is still legally enforceable. The answer often lies in the country’s prescription of debt-the legal time limit after which a creditor loses the right to demand payment. below is a complete, up‑to‑date guide on which debts prescribe, the exact periods that apply, and the steps you must take to invoke the statute of limitations.

---

What Is Debt Prescription in Costa Rica?

In Costa Rican law, prescription (or “prescripción”) is a mechanism that deletes a debt when the creditor fails to initiate formal collection actions within a legally defined period. Once that period lapses, the creditor can no longer enforce the claim in court.

“Prescription provides legal certainty for both parties: it shields debtors from endless collection attempts and forces creditors to act promptly,” explains Ernesto Solano, legal and user‑experience leader at the Financial Consumer office (OCF).

---

Which Debts Expire and When?

All obligations in Costa Rica have a prescribed term, but the length varies dramatically depending on the nature of the debt. Below is a rapid reference chart:

Prescription Period	Types of Debt
1 year	• Public‑service bills (water, electricity, garbage) • Periodic telecom fees • Condominium, association or solidarity fees • Professional fees billed monthly
2 years	• One‑time professional services (doctors, technicians, lawyers)
4 years	• Credit‑card balances • Consumer loans and commercial mortgages • Commercial invoices • Self-reliant‑worker contributions to the Costa Rican Social Security fund (CCSS)
10 years	• Bank loans (personal and mortgage) • Civil obligations without a special deadline • Promissory notes and bills of exchange

“Monthly, repetitive charges for essential services have the shortest prescription-just one year-because the law assumes those debts should be settled promptly,” says angie Portela, legal manager at APriori Corporate law.

Key takeaway: The faster‑prescribing debts are those tied to basic, recurring consumption (e.g., water or electricity). Longer‑term debts such as mortgages or promissory notes enjoy a ten‑year window.

---

When Does the Clock Start?

The prescription period begins the day after the debt’s due date. For example, if a monthly utility bill is payable on the 1st of the month, the one‑year countdown starts on the 2nd. If the debtor does not pay by that date, the debt becomes “prescribed” the next day after the full period elapses.

---

Prescription Is Not Automatic – You Must Request It

A common misconception is that debts simply disappear after the deadline.In reality, prescription must be actively claimed before a judge. The process is as follows:

1. File a petition with a Costa Rican civil court requesting that the debt be declared prescribed.
2. The judge reviews the case, confirming that:

• The statutory period has fully passed, and
• No lawsuit or formal notification has been served to the debtor.
• If the court agrees, it issues an order declaring the debt prescribed.
• Should any assets have been seized during the litigation, the debtor is entitled to the full return of those amounts.

Ernesto Solano emphasizes that “the burden of proof lies with the debtor; you must demonstrate that the creditor failed to act within the legal timeframe.”

---

Practical Steps to Protect Yourself

1. Collect documentation – Keep invoices, payment receipts, and any interaction from the creditor.
2. Verify the due date – Identify the exact day the debt matured; count the prescription period from the following day.
3. Check for prior lawsuits – Search the public registry for any pending or resolved actions related to the debt.
4. Consult a lawyer – An attorney experienced in Costa Rican consumer law can draft the appropriate petition and represent you in court.
5. Monitor the case – After the court’s ruling, obtain a certified copy of the decision and notify the creditor in writing.

---

What Happens if a Creditor Ignores Prescription?

If a creditor continues to pursue a debt that a court has declared prescribed, they may be liable for abusive collection practices under consumer protection statutes. Debtors can file a complaint with the Financial Consumer Office (OCF), which can impose fines and order the cessation of all collection attempts.

---

Bottom Line

• Every debt in Costa Rica has a legal expiration date.
• The shortest terms (1 year) apply to essential, recurring services; the longest (10 years) cover loans and civil obligations.
• prescription is not automatic; you must request it before a judge and provide evidence that the creditor failed to act within the statutory window.
• Acting promptly can save you from needless lawsuits, fees, and stress.

If you’ve received a threatening collection notice, don’t assume the debt is still enforceable. Review the prescription period that applies to your obligation, gather your paperwork, and consider filing a petition to have the debt declared prescribed. Protect your rights-and your peace of mind.

---

For legal assistance or more details on debt prescription, contact the Financial Consumer Office (OCF) or a qualified consumer‑rights attorney.

Okay, here’s a breakdown of teh provided text, summarizing the key takeaways regarding Costa Rican statutes of limitations for promissory notes and bank loans. I’ll organize it into sections for clarity, and highlight vital points.

Legal Framework Behind the Prescription Period

Civil Code Articles Governing Contractual Obligations

• Article 2113 – general five‑year prescription for obligations arising from contracts and quasi‑contracts.
• Article 2105 – Prescription begins when the debtor is notified of the claim (service of process).

Commercial Code Provisions for Financial Instruments

• Article 2212 – Sets a five‑year limitation for the enforcement of promissory notes and other negotiable instruments.
• Article 2215 – Aligns bank loan claims with the same five‑year prescription, unless a shorter period is expressly stipulated in the loan agreement.

Key Definitions (LSI Keywords)

• Statute of limitations Costa Rica
• Prescription period for debt
• Costa Rican civil code debt collection
• Commercial code negotiable instruments

Receipts: How Long Can a Seller Enforce Payment?

1. Standard Prescription – Five years from the date the receipt was issued, per Article 2113.
2. Interruptions – Delivery of a formal demand letter, acknowledgment of debt, or filing of a claim in court restarts the clock.
3. Practical Tip – Keep digital copies of receipts and record any debtor acknowledgments to protect your right to collect after the limitation period.

Example Scenario

• A small retailer in San José issues a receipt on 15 Mar 2021 for services rendered. The debtor never pays, and the retailer files a lawsuit on 10 Jun 2024. The claim is valid because it falls within the five‑year window (expires on 15 Mar 2026).

Credit Card debt: Prescription Rules You Must Know

• default Prescription – five years from the last payment or the date the credit card statement was issued, whichever is later.
• Special Consideration – If the credit card agreement includes a clause shorter than five years,the contract term prevails (though such clauses are rarely enforceable under Costa Rican law).

Steps to Safeguard Your Credit Card Portfolio

1. Monitor Statement Dates – Track the last statement issued to calculate the exact limitation deadline.
2. Send Formal Demand Notices – A written demand before the five‑year mark resets the period and demonstrates good‑faith collection efforts.
3. Document All Communications – Email threads, SMS confirmations, and signed acknowledgments serve as evidence of interruption.

Promissory notes: Five‑Year Enforcement Window

• Statutory Basis – Article 2212 of the Commercial Code mandates a five‑year prescription for promissory notes, regardless of the note’s maturity date.
• Effect of Assignment – When a note is transferred, the new holder inherits the same limitation period; the clock does not restart.

Checklist for Promissory Note Holders

• Verify the date of issuance and calculate the five‑year deadline.
• Confirm no prior acknowledgment or partial payment has occurred,which would restart the period.
• Ensure the note’s endorsement is properly recorded to avoid disputes over ownership.

bank Loans: Aligning with the Five‑Year Rule

• General Rule – Bank loan claims follow Article 2113 (five years) unless a shorter term is expressly agreed upon in the loan contract.
• Variable‑Rate Loans – Interest recalculations do not alter the prescription period; only the principal claim’s filing date matters.

Practical Guidance for Lenders

1. Include a “Notice of Default” Clause – Triggering a formal notice before the limitation expires can interrupt the period.
2. Maintain Accurate Payment Records – Each missed installment constitutes a separate default event that can be used to reset the clock.
3. leverage Judicial Enforcement – Filing a demand for payment in a Costa Rican civil court before the five‑year mark ensures the claim remains enforceable.

Interruption & Suspension of the Limitation Period

Trigger	Effect on prescription	Typical Duration
Formal demand letter	Restarts the five‑year count from the date of receipt	N/A
Acknowledgment of debt (written)	Restarts the clock	N/A
Judicial filing (lawsuit)	Stops the period; judgment resets if appeal is filed	Until final judgment
Bankruptcy proceeding	Suspends the limitation until bankruptcy concludes	Varies by case

How to Prove an Interruption

• Retain certified mail receipts of demand letters.
• Secure signed acknowledgments from the debtor.
• Keep court docket entries showing filing dates.

Benefits of Understanding the Statute of Limitations

• Risk Management – Avoid losing enforceable claims due to missed deadlines.
• Cost Savings – Reduce reliance on costly litigation by acting within the prescribed window.
• Compliance – Align collection practices with Costa Rican consumer‑protection laws, minimizing regulatory penalties.

Real‑World Example: Bank of Costa Rica vs.Small Business (2023)

• Case Summary – A regional bank filed a lawsuit in July 2023 to recover a defaulted loan issued on 12 Oct 2018. The court upheld the claim because the filing occurred within the five‑year prescription period (deadline: 12 Oct 2023).
• Key Takeaway – timely initiation of legal action before the limitation expires is critical for successful debt recovery.

Practical Tips for Debtors

1. review Contractual Terms – Identify any clause that may shorten the statutory period.
2. Request a Written Settlement – A settlement agreement can reset the limitation period if it includes a clear acknowledgment of debt.
3. Stay informed of legal Changes – Monitor updates to Costa Rica’s Civil and Commercial Codes that could affect prescription periods.

Practical Tips for Creditors

• Implement a Calendar System – Flag the expiration dates of all receivables, credit card accounts, promissory notes, and loans.
• Automate Demand Notices – Use legal software to generate and send demand letters automatically before the five‑year deadline.
• Conduct Periodic Audits – Review outstanding claims quarterly to ensure no statute of limitations issues are overlooked.

Frequently Asked Questions (FAQ)

Q1: Can the five‑year period be extended by mutual agreement?

A: yes, parties may agree to extend the limitation period, but the extension must be documented in writing and cannot contravene mandatory consumer‑protection provisions.

Q2: Does the prescriptive period differ for foreign lenders?

A: No,the five‑year rule applies uniformly to both domestic and foreign creditors,provided the claim is enforceable under Costa Rican law.

Q3: What happens if a debtor declares bankruptcy?

A: the limitation period is suspended during bankruptcy proceedings. Once the bankruptcy is resolved,the clock resumes from where it left off.

Q4: Are electronic receipts accepted for determining the limitation period?

A: Yes, electronic receipts that meet the standards of the Costa Rican Electronic Commerce Law are fully valid for calculating the statute of limitations.

---

Keywords integrated throughout: Costa Rica statute of limitations, five-year prescription, debt collection costa Rica, credit card debt enforcement, promissory note limitation, bank loan legal timeframe, Costa Rican civil code, commercial code, debt recovery best practices.