I live in California.. My state's Statute of Limitations on a credit card account is 4 years. This means my creditors have up until 4 years to sue me, right? But, on the original contract that I signed to get this credit card it clearly reads, "This offer and any resulting account are subject to Delaware and Federal law." From my understanding the (SOL) in Delaware for open accounts is 3 years.. I was advised by an attorney that my contract clearly states that Delaware law applies. Regardless if I might live in a state that has a 6 years (SOL.) Is this correct? Can someone with verified info please respond? ... Also, I have a Fleet credit card.. Fleet is located in Rhode Island.. My contract with them states that Rhode Island law applies. Rhode Island has a 10 year (SOL) on credit card accounts. Does this mean Rhode Island law applies? Please don't respond with, I think, well maybe, it could, type answers.. Someone must have verifiable information.. thanks
Basically, can someone please show me some sort of law that states where you signed the contract for the credit card is the state you will be sued in.. It is my belief that since the contract clearly reads, "Delaware law applies." That Delaware's (SOL) of 3 years applies regardless of what your states (SOL) may be.. Folks, many, many, many, credit cards come from Delaware.. Something about the high usery fee Delaware offers. And in that original contract that you signed it more than likely says, "Delaware law applies." I think this is a very dirty, very secretive scam creditors don't want you to know about.
Are you asking because you have received notice of a suit or think you are going to get served? If so, definitely consult a competent attorney. -Peace, Dave
Actually, Jeff, many cards come from other states than Delaware. Like South Dakota and Ohio. If SOL's were meant to be that simple, why would each state have their own? Your statements make no sense to me. And I agree with Nave, talk to an attorney.
Hi, Jeff. Some of the best answers on this board arise from the free-wheeling group brainstorming that usually takes place here. For that reason, we usually don't restrict each other the way you did when asking questions. Tip for better living: try to avoid stifling and overly directive commands like "Please don't respond with, I think, well maybe, it could, type answers." Stuff like that usually alienates and discourages many of the very people who could answer your questions directly. Hopefully somebody will assist you regardless, though. Doc P.S. That said, I think maybe the only SOL that applies is the one apropros to the state of residence, no matter what the creditor says. I think, well maybe, it could. Anybody else dare to tread on these hallowed grounds? P.P.S. Here's some statistical proof that your initial posting discouraged discussion. Notice in the list of threads that two numbers are shown -- the number of responses ("replies") as well as the number of people who have read the thread ("views"). If you divide the number of views by the number of replies on practically every thread here, you'll get a number from 10 to 20 (i.e., about 1 response for every 10 to 20 views)... except in your thread, which as I write this enjoys a response ratio of 57.4. With that kind of response, the thread may not attract the kind of attention you need in order to get an answer. Basically, you WANT people who don't know to respond -- that way, the people who DO know will come out of the woodwork with their valuable two cents. Sorry, I love statistics, forgive the stats lecture.
In general the creditor may file suit in either state they choose. The disclaimer "Delaware law applies" is typically included in a credit contract as states such as Delaware do not limit the interest a creditor may charge, whereas some states do. Although they can file in their home state they must be able to assert jurisdiction over you - your signature on the contract does not automatically grant them this. As a resident of another state the competent court of jurisdiction for civil matters is the court system located in your state. While the creditor may file in their home state and have you served with process a response to the court advising you do not submit to jurisdiction and request a change of venue is normally sufficient to have the case moved to your state, where the prevailing state laws will apply. A failure to respond and a resulting default judgement will generally be enforceable under "full faith and credit" in which your state court will recognize a judgement by another state's court as valid and enforceable. While the creditor's home state cannot automatically assert jurisdiction over you - because the creditor elects to do business in your state they are submitting to the authority of the courts in your home state. Either state's laws can apply - it just depends on how you react to a lawsuite and what you allow to be done to you.
The disclaimer "Delaware law applies" is typically included in a credit contract as states such as Delaware do not limit the interest a creditor may charge, whereas some states do. I believe this is called a usery fee. They can go nuts on interest, penalties, etc.. Since they've paid no attention to California's cap on interest wouldn't this exclude them from utilizing California law? Although they can file in their home state they must be able to assert jurisdiction over you. How do they do that? While the creditor may file in their home state and have you served with process a response to the court advising you (do not submit to jurisdiction and request a change of venue is normally sufficient to have the case moved to your state, where the prevailing state laws will apply.) Is something missing from this statement? ( ) because the creditor elects to do business in your state they are submitting to the authority of the courts in your home state. Doesn't the authority in California say you can only charge so much for interst? Either state's laws can apply - it just depends on how you react to a lawsuite and what you allow to be done to you. What do you mean react? California has a 3 year (SOL). Ohio has a 10 year (SOL). If I signed a CC agreement from a bank in Ohio while living in California and haven't made a payment in 7 years. Can the Ohio bank still sue me if the agreement I signed states that Ohio law applies? Please give more detailed info if possible.. I'm not sure if the glass is 1/2 empty, 1/2 full or even a glass. thanks