The most effective defense against credit card lawsuit is also one of the most confusing. The Statute of Limitation or SOL refers to a period in which a bank or credit company may go after a delinquent debtor. One of the most confusing issues with regards to SOL is which SOL will apply, will it apply to state from which the CC company is based or the location of the debtor? Another notable issue is what SOL will apply for debtors who moved from another state after incurring debts. And for those with multiple debts in different states, which SOL should apply in their case?
The general rule of thumb is, the SOL that will apply is the one enacted on your current state or previous state you were based in when the card contract was signed. However, there are certain stipulations to the rules.
Although statute of limitations make great defense against credit card lawsuit, note that all states in the US feature different statutes of limitations laws and in some states, jurisdiction issues are still largely unclear. Card companies may file for a card lawsuit in the jurisdiction below:
• The state that the card company is located
• The state that the debtor is based when the credit card was opened
• The current state that the debtor lives
• The state that the outstanding charges were made
Factors To Determine Which Jurisdiction To Pursue
One: Certain states, like New York, passed laws that prevent credit card companies from taking advantages of longer statutes. Some states do not allow card companies from one state to sue debtors in another state.
Two: Some card company will try to take advantage of states with precedent to get a more favorable outcome.
Three: There are card agreements that with clauses for choice of venue. Simply put, the agreement dictates which court will preside over certain conflicts, including when being sued by the credit card company. That said, because many state judges are not fond of such clauses, they might not hold much significance.
When faced with a lawsuit, it is always important to determine the right defense against credit card lawsuit otherwise, you could be missing a critical fact that would otherwise drop the case altogether. Make sure you exhaust all efforts looking for the right information online and even offline (get advice from a debt attorney) to discover which steps to take when defending yourself in court Pro Se.
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