Help Understanding Statute of Limitations and Credit Reporting for Old Debt (in Collections)

[gdale6]

---

@Anonymous wrote:

---

@gdale6 wrote:

---

---

They can also use the state the creditor is incorporated in if its longer than either of these.

---

So lets say the creditor is incorporated in California. They are allowed to sue her in CA, and we are required to travel to CA and show up in court?

---

No they would not sue her in CA but the state she is living in. They would use the SOL from CA as their defense in court if she would attempt to use a shorter SOL in the state she is now in or the state the contract was originally approved in. Now there are some creditors who state in their T&Cs what states statutes will be used in any arbitration or legal actions so one needs to read this fine print as well to see what SOL would apply.

[Anonymous]

---

@gdale6 wrote:

---

No they would not sue her in CA but the state she is living in. They would use the SOL from CA as their defense in court if she would attempt to use a shorter SOL in the state she is now in or the state the contract was originally approved in. Now there are some creditors who state in their T&Cs what states statutes will be used in any arbitration or legal actions so one needs to read this fine print as well to see what SOL would apply.

---

Ah ok that makes more sense. 

1. The paperwork for that credit card is long gone at this point...since we no longer have that in our possession, do you have any recommendations for how we could gain access to it so that we can check if it stipulates a particular state's laws apply to disputes?

2. Lets imagine that the contract does not specify a specific state's laws apply. They try to argue that the SOL from {insert state of incorporation here} applies and we try to argue that her state of residence (and the state they are bringing the suit in - VA) should apply. Is it just up to judge's discretion to choose who to side with? 

[gdale6]

---

@Anonymous wrote:

---

@gdale6 wrote:

---

No they would not sue her in CA but the state she is living in. They would use the SOL from CA as their defense in court if she would attempt to use a shorter SOL in the state she is now in or the state the contract was originally approved in. Now there are some creditors who state in their T&Cs what states statutes will be used in any arbitration or legal actions so one needs to read this fine print as well to see what SOL would apply.

---

Ah ok that makes more sense. 

1. The paperwork for that credit card is long gone at this point...since we no longer have that in our possession, do you have any recommendations for how we could gain access to it so that we can check if it stipulates a particular state's laws apply to disputes?

2. Lets imagine that the contract does not specify a specific state's laws apply. They try to argue that the SOL from {insert state of incorporation here} applies and we try to argue that her state of residence (and the state they are bringing the suit in - VA) should apply. Is it just up to judge's discretion to choose who to side with? 

---

1. You could try calling the OC to obtain the T&Cs that apply to the account.

2. Yes, its pretty much up to the judge and to whether or not state statutes bar the use of any other states statutes. Few states bar use of another states statutes AFAIK. Only a judge can make a determination of a debt is actually past SOL or not. This is why its good to consult a consumer credit lawyer when legal actions start to enter the picture.

[Anonymous]

---

@gdale6 wrote:

---

---

1. You could try calling the OC to obtain the T&Cs that apply to the account.

2. Yes, its pretty much up to the judge and to whether or not state statutes bar the use of any other states statutes. Few states bar use of another states statutes AFAIK. Only a judge can make a determination of a debt is actually past SOL or not. This is why its good to consult a consumer credit lawyer when legal actions start to enter the picture.

---

Makes sense, thanks.

I found this website/list: https://www.consumeradvocates.org/find-an-attorney?field_areas_of_practice_list_value=Debt+Collectio...

Do you have any opinions on that list (good, bad, never heard of it, etc.)?

Any other specific recommendations on finding a good consumer credit lawyer?

[Anonymous]

If this is a valid debt, why doesn't she make arrangements to pay it?  I'm assuming she used the credit card.  

[Anonymous]

---

@Anonymous wrote:

If this is a valid debt, why doesn't she make arrangements to pay it?  I'm assuming she used the credit card.  

---

Well that is certainly one option but I think it's fair to say that just saying "why doesn't she just pay it?" is an over simplification of the decision making process. If it was that simple and easy then 90% of the posts on this forum probably wouldn't exist...

In no particular order here are just a few of the things that we are weighing:

1. If the debt is past the SOL then the OC has no legal basis for taking legal action against her. Therefore, since she does not have unlimited money she may choose to prioritize other outstanding debts that are still within the SOL. Or she may choose to put that money towards medical procedures she has been delaying due to lack of funds. There's a lot of different reasonable options

2. Even if she does choose to pay the outstanding debt, having a strong grasp of the SOL will materially impact the leverage we have during negotiations with the creditor. For example, "you can take my offer or leave it...but this debt falls outside of the SOL so you have no chance of getting a court order forcing me to pay...so do you want to get something for this debt or do you want to get nothing?" Being able to say something like that during negotiations is very strong leverage (and no, I probably wouldn't be that aggressive with my tone - I'm just illustrating my point).