Statute of Limitations for Credit Card Debt

Aztonster · #1 06-10-2009, 05:43 PM

My question involves collection proceedings in the State of: Utah

I currently live in Utah and was served with legal papers to reply to the court and a lawyer (working on behalf of Cash LLC) for a credit card that I defaulted on 9/2005. I was living in Arizona at the time the account was opened and defaulted on and the statue of limitations on credit card debt there is 3 years. My question is what state would the statue of limitations apply to Arizona or Utah. In Utah it is 4 years and may have to try and settle with them. Thanks!

Antigone · #2 06-10-2009, 05:45 PM

Quoting Aztonster

My question involves collection proceedings in the State of: Utah

I currently live in Utah and was served with legal papers to reply to the court and a lawyer (working on behalf of Cash LLC) for a credit card that I defaulted on 9/2005. I was living in Arizona at the time the account was opened and defaulted on and the statue of limitations on credit card debt there is 3 years. My question is what state would the statue of limitations apply to Arizona or Utah. In Utah it is 4 years and may have to try and settle with them. Thanks!

When did you leave Arizona?

aaron · #3 06-10-2009, 07:10 PM

Utah law provides,

Quoting Utah Code, Sec. 78B-2-103 - Action barred in another state barred in Utah.

A cause of action which arises in another jurisdiction, and which is not actionable in the other jurisdiction by reason of the lapse of time, may not be pursued in this state, unless the cause of action is held by a citizen of this state who has held the cause of action from the time it accrued.

What I believe Antigone is trying to determine is whether the cause of action expired before you left Arizona, or if your absence may have tolled (extended) the limitations period in that state.

Aztonster · #4 06-10-2009, 10:37 PM

I left Arizona about 2 months after the card went past due (30 days) which would have been September.

Antigone · #5 06-10-2009, 10:51 PM

Quoting Aztonster

I left Arizona about 2 months after the card went past due (30 days) which would have been September.

It appears to me, Aarom please correct me if I am wrong, that the clock on the SOL stopped running prior to its expiration.

OP, you might want to contact the attorney for the creditor and see if you can negotiate a settlement.

Betty3 · #6 06-11-2009, 12:56 AM

Agree with above answer. Betty3

Mr. Knowitall · #7 06-11-2009, 07:33 AM

It seems quite possible that as the statute would not have expired in Arizona, it remains viable in Utah. It's best to clear up with a Utah lawyer if the Utah court would interpret the state's borrowing statute to apply just the Arizona limitations period, or also its tolling statute.

Quoting ARS 12-501. Effect of absence from state

When a person against whom there is a cause of action is without the state at the time the cause of action accrues or at any time during which the action might have been maintained, such action may be brought against the person after his return to the state. The time of such person's absence shall not be counted or taken as a part of the time limited by the provisions of this chapter.

I have also seen creditors try to argue that debts from major credit cards with written applications should fall under longer limitations periods, but I don't know how Arizona comes down on the issue.

Quoting ARS 12-543. Oral debt; stated or open account; relief on ground of fraud or mistake; three year limitation

There shall be commenced and prosecuted within three years after the cause of action accrues, and not afterward, the following actions:

1. For debt where the indebtedness is not evidenced by a contract in writing.

2. Upon stated or open accounts other than such mutual and current accounts as concern the trade of merchandise between merchant and merchant, their factors or agents, but no item of a stated or open account shall be barred so long as any item thereof has been incurred within three years immediately prior to the bringing of an action thereon.

3. For relief on the ground of fraud or mistake, which cause of action shall not be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud or mistake.

Quoting ARS 12-548. Contract in writing for debt; six year limitation

An action for debt where indebtedness is evidenced by or founded upon a contract in writing executed within the state shall be commenced and prosecuted within six years after the cause of action accrues, and not afterward.