Louisiana Credit Card Debt Collection

[cefc1004]

What is the name of your state (only U.S. law)? New Orleans, LA

I live in Louisiana, and have been told by a debt collection company that they are pursuing legal action against me for an HSBC Bank retailer charge card from 2006.

Here is the background. My card was fraudulently used by an old girlfriend. When I received my statement, I filled the dispute immediately, and filed a police report. Well HSBC denied my claim stating it was invalid because the perpetrator has previously lived at my same residence (when we were together).

I paid off my portion of the balance, and disputed payment of the remaining $1,000 which she had charged (which has since accumulated $900 in interest, so now $1,900 total). It has since come off my credit report, as it has been over 7 years, but now this debt collection law firm is going to sue me.

Louisiana civil code 3494 prescribes a 3 year statute of limitations on an open account, which in my opinion would include a credit/charge card. But the attorney at the collection company says credit cards fall under contracts which has a 10 year statute of limitations.

Can anyone give me any advise? What is the actual truth behind the SOL in Louisiana? What steps should I take next?

Please help!

 

[FamilyGirl]

What was the date of the last payment you made on the debt? Pursuing legal action does

 

[FamilyGirl]

Sorry can't edit my post on this damn thing...pursuing legal action doesn't necessarily mean lawsuit or garnishment. Legal action can mean calling you during dinner or sending you intimidating letters for the next twenty years.

Just because the SOL has expired or its fallen off your credit report doesn't mean they cannot attempt to collect it. They can attempt forever.

When was the last payment made on the debt?

 

[cefc1004]

What was the date of the last payment you made on the debt? Pursuing legal action does

It was sometime in 2006, 8 years ago. I cannot give you the exact date. I contacted HSBC to get the records from the dispute and the billing statement from my last payment, so I could get some more facts, but they said their record retention period is only 7 years. So unfortunately everything regarding my account had been disposed of with no backup or record.

 

[FamilyGirl]

Ok. Now it depends on whether HSBC contract states that their state law governs the debt or yours, the consumer. You need to find that out next. It might not be LA law unless HSBC is in LA.

 

[FamilyGirl]

http://www.consumerfinance.gov/credit-cards/agreements/search/?q=hsbc

Check there OP. See if one of these was the card you were issued. You can download your contract PDF from this site and find out which state law applies with HSBC.

 

[cefc1004]

Ok. Now it depends on whether HSBC contract states that their state law governs the debt or yours, the consumer. You need to find that out next. It might not be LA law unless HSBC is in LA.

Hmm, well the holding company HongKong Shanghai Banking Company is based out of China. Their US subsidiary "HSBC Card & Retail Services" who issued the Saks card sold the Saks contract to Capital One. I cannot find their agreement on the website you sent me. Shoot.

I know I got the card in Louisiana, at the Saks store in New Orleans, and the charges I disputed were made at the New Orleans store.

 

[FamilyGirl]

See my post above

 

[FamilyGirl]

Looks like HSBC and Capital One are out of VA. VA SOL on revolving accounts is three years unless the consumer state SOL is longer.

 

[cefc1004]

Looks like HSBC and Capital One are out of VA. VA SOL on revolving accounts is three years unless the consumer state SOL is longer.

The Louisiana SOL on "open accounts" is 3 years. But the SOL for "contracts" is 10 years. I do not know how to find out what the Louisiana Civil Code or their revised statutes considers or has determined a credit card to be, and what prescriptive period it applies to them.

 

[FamilyGirl]

LA SOL is three years and so is VA on open accounts. LA written contracts is 10. It seems possible after some review they might be able to consider it a written contract so maybe he wasn't blowing smoke...I am stumped. Maybe DC can help. Finding out your original contract might be helpful.

 

[FamilyGirl]

I think it is three years but they could potentially try to argue that it is a written contract.

 

[cefc1004]

I think it is three years but they could potentially try to argue that it is a written contract.

What would be the determining factor? Case law in Louisiana?

 

[TigerD]

1. OP's original question: What is LA SOL on a credit card through HSBC? It is ten years.

Now let's address the confusion familygirl was experiencing:

Just because the SOL has expired or its fallen off your credit report doesn't mean they cannot attempt to collect it. They can attempt forever.

Not completely correct or completely wrong. Some states have statutes against collecting on out-of-statute debt. Some do not. However, on March 4, 2014, the CFPB filed an amicus brief in Buchanan v. Northland Group Inc., asking the 6th Cir. to overrule the district court's holding that collecting on an out of statute debt is not an FDCPA violation. This brief is substantially similar to a brief filed in another case by the CFPB. Clearly, the CFPB intends to litigate or regulate out of statute collections.

Ok. Now it depends on whether HSBC contract states that their state law governs the debt or yours, the consumer. You need to find that out next. It might not be LA law unless HSBC is in LA.

Umm, no. This isn't correct. First, the OP's question is one of definition between a charge card (a type of account expected to be paid in full every month) and a credit card account, which is expected to roll and carry a loan balance. Second, the HSBC contracts alway state a governing law for the terms of their contract and no, it isn't LA.

The website link... While the CFPB does have a sampling of a cards offered by HSBC, that list is small and not very relevant. First, those terms may not be the terms that governs the OP's card from at least eight years ago.

Looks like HSBC and Capital One are out of VA. VA SOL on revolving accounts is three years unless the consumer state SOL is longer.

Once again, no. HCSB almost always selects Delaware for its governing law. And no, it doesn't matter to this situation.

I think it is three years but they could potentially try to argue that it is a written contract.

There is no trying. It is a written contract. The SOL is ten years.

DC

 

[cefc1004]

Thanks DC.

You stated that the SOL for credit cards in Louisiana is 10 years, which is the SOL for written or oral contracts. But the SOL for open accounts is 3 years. Is there any actual case law or revised statute showing what the Louisiana courts are actually determining is the SOL on credit card debt?