Discover Card Charge Off

J

Jaganath Dabbi

New Member
Jurisdiction
Virginia
The first month with the 30 days late payment is Sept 2018.

1. Is the statute of limitations 3 years or 5 years for credit card debt. I live in virginia.
 
Thanks. This seems to indicate that a credit card debt is "not a written agreement" unless they produce my signature on my original credit card application which was back in 1991. I am confused since I spoke to an attorney and he seemed to think it is considered a 5 year written contracts. Your opinion please
 
Jaganath Dabbi said:
Your opinion please
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Sorry, this site doesn't permit attorneys (or others) to provide legal advice or opinions.

You'll have to read the information provided and make your own determinations accordingly.

You are also free to seek a written opinion from an attorney you retain.

You appear to understand the law as written in your state.
 
Jaganath Dabbi said:
1. Is the statute of limitations 3 years or 5 years for credit card debt.
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Neither of the statutes address credit card debt, only the difference between signed and unsigned contracts and written and unwritten.

The article posted by Army Judge appears to be a reasonable interpretation of the "evidence" required to prove the debt.

Not sure why you are concerned at this point because the 3 year SOL would give the creditor until Sept 2021 to file the lawsuit.
 
Note that the CHARGE OFF (from the subject line) means NOTHING to you. That's an accounting thing for the lender. The time runs from the time you breached the contract, most likely, the time you were obligated to make a payment but did not (or any subsequent charge or payment).
 
flyingron said:
The time runs from the time you breached the contract, most likely, the time you were obligated to make a payment but did not (or any subsequent charge or payment).
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I think the Virginia code says that, but more clearly.

Virginia Code 8.01-249 The cause of action in the actions herein listed shall be deemed to accrue as follows:

8. In actions on an open account, from the later of the last payment or last charge for goods or services rendered on the account

§ 8.01-249. When cause of action shall be deemed to accrue in certain personal actions
 
A credit card is not an "open account." Open account refers to providers of goods or services that deliver such before receiving payment.
 
adjusterjack said:
A search for case law defining "open account" came up empty.
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The following from a ruling of a Virginia Circuit Court Chief Judge provides a discussion of what "open account" means:

Many cases within the jurisprudence of Virginia use the term "open account". Most take it as a given that the audience understands the meaning of the term. The parties cite different editions of Black's Law Dictionary to support their respective interpretations of the term.

The most recent definition by the Virginia Supreme Court is contained in United Savings Association of Texas v. Jim Carpenter Co.1, a case argued by both parties. Though the Jim Carpenter case was in the context of mechanics liens, Justice Koontz stated, "The term 'open account' can be applied generally to any unsecured line of credit." That definition is sufficient for this case.

The purpose of permitting causes of action on open accounts to accrue on the later of the last payment or the last charge for goods or services is clearly due to the implicit nature of a promise to pay for goods or services which are later provided on the open account. In fact, the earliest Virginia case found on this topic is Beall v. Edmondson,3 in which the Supreme Court of Virginia concluded that a promise to pay at the time of delivery constituted consideration of a moral obligation and supported the action justifying verdict for the Seller.

Put another way, and using language that was applied by the Supreme Court of Virginia in another context, an open account is not a situation in which there is "only a single transaction with the debits all on one side."

While open accounts are more ordinarily seen in commercial and mercantile contexts, they certainly may apply in a context of medical services as well. The most typical example of open account was described in Columbia Heights Section III, Incorporated v. Griffith–Consumers Company, where the Court stated in a case pertaining to open account that "continuous deliveries were made and various services rendered, and that from time to time defendant made payments on the account. The payments were always in round figures, usually $1,000.00, and bore no relation to the amount of charges or the existing balance appearing on the statement."​

Carilion Med. Ctr. v. Ady, No. CL07000385-00, 2008 WL 8201375, at *1–2 (Va. Cir. Ct. Nov. 24, 2008).

IMO the overall sense from that discussion is that a credit card obligation would NOT be an open account in Virginia law even though in finance generally a credit card account would be considered a type of open account. The judge notes that open accounts are those where there is a promise to pay for goods or services which are later provided on the open account and also states that open accounts are more ordinarily seen in commercial contexts. If a credit card was considered an open account, that would actually be the context in which open accounts are "more ordinarily seen." And the credit card company is not providing goods and services later for the promise to pay. It is providing immediate payment to the merchant on the promise of the card holder to pay, that promise being made on the authorization of the charge. But the point certainly is one that would be open to argument before a judge if the accrual rule was the deciding factor on whether the SOL had expired.
 

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