Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
SaveMefromDebt

125 Contributions
133 People Helped
Statute of Limitations
I am in the process of possibly moving out of state. I have a charge-off (or collection depending on which credit report you look at) that occurred in January 2012. I have disputed this activity based on fraud from the lender (Consumer Portfolio Services). They've settled a lawsuit related to their lending and debt collection practices.

Anyway, not being able to have this removed, I want to see what other options I have to put the matter behind me.

I found this online:

----
Let’s set the scenario:

You didn’t pay on a credit card, and the creditor finally charged off your account. The card was issued and charged off when you lived in Texas, but now you live in Rhode Island.

To understand the statute of limitations, you have to understand the type of account you have. Different types of accounts are viewed differently by the law.

A credit card agreement is known as a ‘Open-Ended’ agreement. Open ended agreements have a specific statute of limitations, and that may be different than other types of accounts. See my post on ‘What are the different types of credit accounts’.

In Texas, where you got your credit card and defaulted on it, the statute of limitations for open-ended accounts is 4 years. In Rhode Island, the statute of limitations for open-ended contracts is 10 years. Unfortunately, you now live in a state where the statute of limitations is longer than where you originally lived.

Debt collectors typically follow the statute of limitations of the state you currently live in. So, the collector can now collect against the law in Rhode Island, instead of the limit on Texas. This means they have an additional 6 years in which to sue you.

Even if the statute of limitations has expired before you move, the collection firms will still collect against the statute of limitations in the state you currently live in. Because of this, a debt you thought you could not be sued for may crop back up in court if you move.
-----
My question is this. Does it work the other way? I am in a state with a 6 year statute of limitations on a written contract, and am looking to move to a state with a 4 year statute of limitations. The contract was signed in the 6 year state, but to bring a civil suit against me, I can't exactly be "extradited".

If anyone has experience with CPS, that would be much preferable.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.