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SOL . . . in what state does it apply?


HoundMom
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Got an easy question for you all. Say, for example, that I take out a credit card while living in Illinois. I then get transferred to California, of course taking that credit card with me. Later, I get sent back to Illinois where I fall on hard times and can no longer make payments on the card. It then gets charged off. A year later, I move again, this time to Indiana. While in Indiana, a CA starts collection activity against me.

So what SOL actually affects a situation like this? The card was issued while I was living in Illinois and that's where I stopped making payments. But I now live in Indiana. the SOL in Illinois is 5 years; SOL in Indiana is 6 years. Which applies?

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If the contract has a Choice of Law provision (it reads "this contract will be governed by the laws of the State of XXXX) then that state's SOL should prevail. I say "should" because some judges will disregard that provision and aply the SOL of teh state in which you are being sued.

That brings up the other scenario - there is no Choice of law provision. In that instance it is the State where you reside at the time.

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