Legal Question in Credit and Debt Law in District of Columbia
How do you determine the default date on credit card debt
I may be able to raise a statute of limitation defense on a credit card debt that I am being sued on. I am assuming the statue of limitation is 3 years in DC. How do I determine when the statute starts to run, or when the account is placed in default . Is the default date when the acccount becomes 30, 60, 90, 120 days deliquent? Is the default date determined by the date of last payment on the account? Is the default date determined by the charge off date?
1 Answer from Attorneys
Re: How do you determine the default date on credit card debt
In the District of Columbia the statute of limitations for bringing an action based on breach of contract is either six years from the date of the act or omission which constituted the breach or three years from the earliest date which the plaintiff knew or could've reasonably been expected to have known of the act or omission which constituted the breach-----whichever of the two situations is later. See D.C. Code Sec. 1-815.03(b).
The account would normally be considered in default as defined in the terms of the card
holder agreement. This date would not be the charge off date but most likely the date when the borrower failed to make whatever payment was due on the account in order to keep it current and subsequently never cured this default and, consequently, thereby became permanently in breach of the agreement.
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