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  1. #1
    Join Date
    Jan 2012
    Location
    New York City
    Posts
    19

    Default Which Statute of Limitations Applies if a Credit Card Issuer is in Another State

    My question involves collection proceedings in the State of: New York Or New Jersey
    My Credit Union is based in NJ and I am in NY (and joined in this state) - which state law applies? And is there a statute of limitations?

    In May 2015 my Credit Union sent me a Visa statement for charges under "Purchase Advance Balance" for about $1200.
    When I called and questioned them, as I have not used or activated their card in many years, they said the charges were from 2010.
    I requested an an accounting in writing of each individual charge, and yesterday they sent me a list with charges from January 2008 through November 2010.
    Note that during these years I have NEVER been billed by them (they admit this). This is the first I have seen or heard of these charges.
    I contacted two of the vendors listed, and they had no records of me ever having contracted services. One is a debt collector who assured me their records go back beyond 2008. One vendor's bill is duplicated. Some out of town charges were incurred while I was at home, according to my 2010 datebook.
    In summary - there are some problems with this statement.

    Can I be sued for collection of these debts? Would NJ or NY law apply?
    Or do I need to worry about disputing these charges?
    Note I did file a complaint with the National Credit Union Administration immediately in May, but have not heard back from them.

    Thank you for any assistance.

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Credit Union Says I Have 5-7 Year-Old Visa Debts That Were Never Billed Me

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    My question involves collection proceedings in the State of: New York Or New Jersey
    My Credit Union is based in NJ and I am in NY (and joined in this state) - which state law applies? And is there a statute of limitations?
    NY law would apply unless your credit card contract had a "choice of law" provision stating elsewhere.

    The SOL is the same in NY and NJ - 6 years for breach of a written contract.

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    In May 2015 my Credit Union sent me a Visa statement for charges under "Purchase Advance Balance" for about $1200.
    When I called and questioned them, as I have not used or activated their card in many years, they said the charges were from 2010.
    I requested an an accounting in writing of each individual charge, and yesterday they sent me a list with charges from January 2008 through November 2010.
    Note that during these years I have NEVER been billed by them (they admit this). This is the first I have seen or heard of these charges.
    I'm guessing that your credit card contract has a provision that you pay what you owe even if you don't get billed. Get a copy and read it.

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    I contacted two of the vendors listed, and they had no records of me ever having contracted services. One is a debt collector who assured me their records go back beyond 2008. One vendor's bill is duplicated. Some out of town charges were incurred while I was at home, according to my 2010 datebook.
    In summary - there are some problems with this statement.
    Then you address those problems, in writing, with the credit union and provide them with any documentation that you can come up with.

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    Can I be sued for collection of these debts?
    Of course you CAN be sued for collection of these debts.

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    Or do I need to worry about disputing these charges?
    It's up to you how much "worry" you want to do but it certainly would be a good idea to be proactive about working things out with the credit union.

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    Note I did file a complaint with the National Credit Union Administration immediately in May, but have not heard back from them.
    I doubt that you will get anywhere with that because your credit union isn't doing anything wrong or illegal.

    Here's a suggestion. If there is any part of that $1200 that you agree that you owe, then send a check along with a letter explaining that you have confirmed you owe X but that Y is in dispute and ask that the credit union waive Y. Then see what kind of response you get. If they say no, you aren't any worse off because you owed X anyway. You'd be in error if you think holding back all the money gives you any leverage. They'll just send you to a collection agency which will be 10 times worse than just paying something to the credit union.

  3. #3
    Join Date
    Jan 2012
    Location
    New York City
    Posts
    19

    Default Re: Credit Union Says I Have 5-7 Year-Old Visa Debts That Were Never Billed Me

    For others who might find themselves in this situation, I am including my outcome in this matter.
    I was going to proceed as directed in the above response, which made sense, paying those charges that "seemed" like they could have been mine, and disputing others that were blatantly wrong. I agreed to respond to the credit union in one week, but procrastinated for a few days more as I worked through the charges.
    Good thing I did. The credit union ended up dropping all charges and sent me a letter absolving me of all the debt.
    Did they discover a system error? I think so but cannot be sure. In any case, my asking for a thorough review and questioning each vendor that I was able to identify and contact, as well as writing to the credit union president and consumer protection agency paid off.

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