Legal Question in Credit and Debt Law in Virginia

Credit cards-Open Accounts or Written Agreements?

I opened a credit card in April/May 2000 in New York State and made my last payment in November 2001. It defaulted six months later. By this time I was, and currently reside, in VA. A collection agency filed suit in July of 2005 on this account. I believe it is now beyond the VA SOL on open accounts, which is three years. However, the agency is claiming the credit card is a written agreement, the VA SOL on which is five years, so they can legally sue. They have a signed copy of the original application. I've read elsewhere that credit cards are ALWAYS considered to be open accounts under Article 9 of the Uniform Commercial Code (UCC), which would put the law on my side. Who's right?


Asked on 12/09/05, 9:07 pm

1 Answer from Attorneys
Jonathon Moseley Jonathon A. Moseley

Re: Credit cards-Open Accounts or Written Agreements?

It depends on what you actually signed, what it

says that you agreed to by signing it. If the

application includes text in which you agreed to

pay for all charges on the account, or anything

like that, then it would be treated as a written

contract under Virginia law. The question is

whether there is an agreement to pay in writing

signed by you. The fact that it is a revolving

account is not the issue. The question is whether

or not it is a purely oral agreement.

If your signature is not a signature on a promise

to pay, then it is NOT a contract. For example, your signature on a document authorizing them to

check your credit or something like that would

NOT be a contract.

So it is not a question of whether your signature

is on a piece of paper. The question is whether

your signature indicates that you agreed to

something. It isn't your signature that matters.

It is what you agreed to that matters.

However, if the filed suit in July, isn't it concluded by now? Or is this a circuit court

case?

Read more
Answered on 12/09/05, 9:54 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Virginia