Some of the card member agreements state stuff like this: Cardmember Agreement: You agree to be bound by the terms of the Cardmember Agreement, which will be sent with the Card. You also agree that the Cardmember Agreement and the Account are governed by Delaware and applicable federal law and that the Cardmember Agreement, which includes the rates and fees, is subject to change. Does that mean the statute of limitations will go by Delaware law in this case ? No matter wehere you signed the contract ? And how about this clause : Arbitration: The Cardmember Agreement includes an arbitration provision that allows either of us to choose to resolve a claim or dispute relating to your Account by binding arbitration, in which case, neither of us will have the right to have that claim resolved by a judge or jury. In what cases can they get the law involved about this account since there is an arbitration clause? Thanks for clearing this up.
Usually what the card companies do is hire a law firm to represent them in arbitration. If they get a decision in their favor, they take itto a state court judge for enforcement under the applicable laws in your state. GArnishment of wages, leins on property or, whatever is allowed by state law. MBNA uses Poloff & Arahamson to handle their arbitration cases.
Does the card member agreement superseed state/federal law ? If my agreement I signed says everything is governed by Deleware law then everything including the statute of limitations have to go by Delware law ?
The arbitration part is in court now, and it will be a while before it is resolved. The statute of limitations is governed by the state where you reside, or if you get the card in one state, and then move to another state, technically, it can be either state, although the stat where you reside will still have laws regarding any actions taken in another state.
