Legal Question in Credit and Debt Law in Virginia

Precedence of Statute of Limitations

An application for a credit card was signed in Virginia where the consumer lives. Bank A issued the card with a contract stating it was governed by the laws of the state of ''Abc''. Statute of Limitations (SOL) is 6 years in ''Abc'' on credit card debts. Bank A was purchased by Bank B, which issued new contract governed by state of ''Def''. ''Def'' has 3 year SOL. Virginia, where the contract was signed, has 5 year SOL. Which applies: ''Abc'', ''Def'', or Virginia SOL?


Asked on 7/04/02, 9:09 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Precedence of Statute of Limitations

The statute of limitations of the jurisdiction in which suit is filed is what governs. It may be possible to "forum shop" to find a jurisdiction where the claim is still alive. If they sue in VA (which is almost certainly a valid venue and would not violate the Fair Debt Collection Practices Act(FDCPA)), they have 5 years. If the cardholder continues to reside in VA, that is the only venue valid under the FDCPA - the creditor's lawyer violates the Act by filing elsewhere, provided it's a consumer debt. But that does not void the claim; rather, it imposes liabiility on the lawyer/debt collector. So maybe they can sue in ABC (6 years), but only if the account still has enough connection to that state to render the caredholder subject to jurisdiction there.

Read more
Answered on 7/05/02, 10:53 am


Related Questions & Answers

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