In general, the statute of limitations (SOL) on a debt starts 180 days after a credit card company charges off the debt. Each state has a different statute of limitations. To see what the (SOL) is in your state, click here.
Recently, however the question of which state to use as the time limit came into question in a Florida case (Florida SOL is 5 years). In Capital One Bank USA, NA v Gregorich, suit was brought after 3.5 years from the chargeoff date. The outcome was that the court ruled that the statute of limitations is governed by the Cardmember Agreement between the consumer and the credit card company, and not just the state statute of where the case is being heard.
In the Gregorich case, Capital One began a lawsuit about 3 1/2 years after the date of default. The Customer Agreement (Capital One’s term for Cardmember Agreement) specifically stated that it would be governed by Federal and Virginia law. The relevant statute of limitations in Virginia was deemed to be 3 years because the Agreement did not qualify as a “written contract” governed by the 5 year Virginia Statute of Limitations.
End result? Capital One loses.
Your lesson? Always check the Cardmember Agreement to determine the appropriate statute of limitations.
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great info on credit card debt. But what about a hospital debt? my spouse had several emergency hospital visits, admissions & stays over several month period in 2003. I signed the “authorize to treat” paragraph in every instance but REFUSED & crossed out the paragraph stating as signor I agreed to pay any unpaid balance not covered by the ins. these hospitals continue to try to collect this balance from my spouse. do they have a leg to stand on?
Okay the SOL in Texas is 4 years plus the 6 months from the date last payment made. On my credit report it indicates that the last payment was made on october 2004 b ut for $0 amount. I truely believe that the last payment was atleast a year or two before 2004. what steps should I take. Cause according to the information that i have the creditor is stil covered under the SOL.
The Gregorich court may not have been informed that there’s a good argument that SOL in Virginia for a credit card is only two years.
http://www.debt-consolidation-credit-repair-service.com/forums/showpost.php?p=962566&postcount=5
Floridians sued between the two and 3 year mark by Cap1 need to know they may have an earlier date they can use.
I have been looking into this same subject and found that ohio consumer attorneys love this.
BTW- IN Virginia, § 8.01-249
8. In actions on an open account, [the accrual period begins] from the later of the last payment or last charge for goods or services rendered on the account.
There is a good argument in Va. for the 2 year SOL.
This link has a lot of Va. info , including why you can argue the 2 year sol.
so how do you get your original card agreement if you did not save it from years ago? My guess is cap one won’t supply it
Actually, quite frankly, the commentary is more interesting messages themselves. (Not to insult the author, of course:))
Kristy: I’m curious where you got the idea that the statute of limitations does not begin to run until 180 days after the debt is charged off. Generally, the SOL should start to run when the account terms are breached, which in most cases should be when the first payment due is not paid (that is, the due-date after the last payment the debtor makes). Do you know otherwise?
Forest: If you are sued over a credit card, you have the right, during that process, to request copies of relevant documents, such as the original application, the terms & conditions of the account, and copies of the account statements. If the creditor does not provide the documents you request, then the court might sanction the creditor for failing to do so (up to and including dismissing the case) and/or the court might deny the claim because the creditor cannot show the signed agreement or the statements reflecting the history of the account.
Jeff: I’m curious what makes you think that Ohio consumer lawyers love this argument. (I wholly agree that they do, I’m just wondering if you found some lawyer discussion or stash of information that might be useful to other folks in Ohio fighting with creditors.)
There has been case law which ruled that the SOL starts 180 days after the date of last payment, some which starts date of first missed payment.
I agree it’s confusing. I always tell people to err on the safe side when calculating the SOL.
I need help a lawyer is suing me for a Capital One account. I have not paid the account in our 3 years, but its 10 years old. I want to use this statute of limitations thing according to the cardholders contract and the VA state SOL. The problem is I have no old contract. Is there an address or phone number for Capital One where I can write or call for the agreement/ contact to prove the SOl according to it and not my states SOl ( I’m in RHode Island). I ‘m beoinfg told R.I. is 10 years by lawere is that true, your link says 4 years for open ended accounts.How do I verify this. need help going to court in 2 weeks. The lawyer got a validation request demand letter from me certified mail asking for the contract and agreement. I received nothing. I tried to ge tlegal help, but all the lawyers say I can’t afford them. Need the addres and phone numbers for capital one to find out about copies of the contract , last 6 months of charges on account and wo is really suing me, I doubt this one…I think it’s TSYS in georgia. The notary seal is also expired. Can I get the case dismissed as a result of notary seal expired? I don’t even know if seal is required in Rhode Island. help please.