Credit card users often hear about the statute of limitations and believe it allows them to get out of paying their credit card debts. While this is sometimes true, the statute of limitations differs between states and even between credit cards. Talk to an Ohio attorney if you need legal advice about credit card laws in the state.
Limitation
A statute of limitations gives a creditor a legal time limit during which to sue for an unpaid debt. However, statutes of limitations do not prevent a credit card company from suing you altogether. What they do is allow you to respond to the lawsuit by stating the statute of limitations has expired, and the court should dismiss the lawsuit.
Credit Cards and Judgments
Ohio has two key statutes of limitations that apply to credit card debts: a limitation on an action on open accounts and a limitation on judgments. An open account is a form of credit in which the amount at loan can change with the borrower's activity, such as a credit card. Ohio has a four-year limit on open accounts, according to BCS Alliance. It also places a 21-year limit on judgments, meaning the creditor has 21 years in which to collect payment after it sues you and wins.
Ticking Clocks
As a credit card user in Ohio, the statue of limitations begins to run when you first default on your loan. This means that as soon as you miss your first payment, the credit card company has four years in which to sue you for the debt. As long as the lawsuit is filed within this four-year window the company has met its obligations under the statute of limitations.
Terms and Conditions
When it comes to credit card statutes of limitations, it may not be enough to simply know your state's limitations. Credit card companies often include choice of law provisions as part of the credit card contract. These provisions select the laws of a specific state that cover the agreement. This means Ohio's statutes probably do not apply to your case.
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