How Long Does a Credit Card Company Have to Sue Me?

27 Jun How Long Does a Credit Card Company Have to Sue Me?

A recent article by Bankruptcy Law Network member Jay Fleischman talks about statutes of limitations that apply to credit card debt.

The case, Capital One Bank USA, NA v. Gregorich, dealt with whether Capital One’s lawsuit against Ms. Gregorich was filed on time, or was barred by the statute of limitations. Ms. Gregorich lived in Florida, whose statute of limitaitons was five years on written contracts. The credit card agreement, however, provided that Virginia law applied, and its statute of limitaitons was only three years. Who won?

Ms. Gregorich did. The Court found that since the parties had agreed that Virginia law would apply, the Florida statute of limitations didn’t apply. And it found that since the Cardholder Agreement did not contain information about interest rate or numerous contract terms, it was not, “A complete and concluded agreement between the parties.” This meant that the longer Virginia statute of limitations for written contracts did not apply.

The result? Capital One’s suit was thrown out, and Ms. Gregorich didn’t owe the money.

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Brett Weiss, a senior partner at Chung & Press, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his law partner, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute, the Bankruptcy Bar Association of Maryland, and the Civil Justice Network. He has been recognized as a “Super Lawyer” every year since 2007 for Maryland and the District of Columbia, and in 2011 received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, The United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.
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