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Credit Card Lawsuit Info: More on Statute of Limitations

Credit Card Lawsuit Info: More on Statute of Limitations

Facing a credit card lawsuit for defaulting on your account? It’s understandable that getting served for unpaid credit card debt is a cause for panic but now is not the time. Set aside your fear and confusion and take action. Start with determining whether the debt claim against you is time barred by the statute of limitations. You need to determine what federal or state law applies in your area.

Because there is no federal statute of limitations for credit card debt, you need to review state laws to get the answer you need. However, do note that most credit card agreements have a choice of law provision that specifies the state’s law that will apply once a dispute between you and your creditor arises. This means, you also need to review your credit card agreement as well as accompanying documents you received together with your credit card.

A large majority of credit card companies will adopt the law in the state of Delaware. The court will usually select the choice of law provisions unless the court sees that the provision violates some principle in your home state.  For example, say the credit card company named the Utah the law provision that waive the debtor’s rights to file a class action suit against them. If say, the debtor is from New Jersey and The Third Circuit Court of Appeals determines that the provision cannot be enforced because it violates New Jersey Law. The value of such credit card lawsuit tends to be very small.

This just goes to show how important it is to check your credit card agreement as well as the local court rules. This way, you will determine exactly what actions you need to take once you face a credit card lawsuit or if the said lawsuit is out of statute. To learn more credit card lawsuit defenses and tips, click here.

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