Received Summons/complaint!

[Se7v7en]

What is the name of your state?What is the name of your state?KY

I rec'd. a summons and complaint, now what? This is for a credit card debt (opend 3/1999 closed 4/1999) that orginated while I lived in Texas. I know the SOL in Tx is 4 yrs and Ky it's 5 yrs. I pulled my credit report and the acct. was 30days lated as of June of 1999 if I'm not mistaked the SOL has run out. It was charged off as of June 2001. And Sold to a third party. And in the complaint/summons...it's stated that the plaintiff demads judgment against defendant for the sum $$(amount) plus interest at the rate of 6.000% per annum from November 3, 2000 that's before it was ever charged off. How can that happen. And does the SOL change when it's sold to a third party?

Thank You.

[Debt Guy]

Q. I rec'd. a summons and complaint, now what?

A. You must respond to the summons. Otherwise, the judge will award to default judgment to the plantiffy.

Q. This is for a credit card debt (opend 3/1999 closed 4/1999) that orginated while I lived in Texas. I know the SOL in Tx is 4 yrs and Ky it's 5 yrs. I pulled my credit report and the acct. was 30days lated as of June of 1999 if I'm not mistaked the SOL has run out.

A. Texas SOL is 4 years but is probably not applicable to you since the Texas SOL tolls (or stops running) when you are absent from the state. So, technically the Texas SOL has not expired.

KY SOL is 5 years for an open account and 15 years for a written agreement. Since you are being sued in KY, this is what the judge will understand. You can try to argue that TX SOL applies but I think it will probably not be helpful to you.

The SOL runs from the Date of First Default. If your credit card is an open account, then the SOL has expired. If the credit card is a written agreement, then you are still within the SOL.

Judges rule in different ways on this question. There is little law on this subject and it is not entirely clear which statute of limitations should apply to a credit card debt. In situations in which the financing is provided by the merchant, then the five year statute of limitations should apply because the transaction is one for the sale of goods and the financing aspect is merely a portion of that arrangement. However, if the financing is provided by a third party, then the suit is one based on the written contract to provide credit.

The Federal Truth In Lending Act defines a credit card as an open account. But, judges in a number of states are persuaded by the argument that a bank credit card is not the same as a store credit card as discussed in the previous paragraph.

Q. It was charged off as of June 2001. And Sold to a third party.

A. Charge off is an accounting term. The sale to a 3rd party does not change anything.

Q. And in the complaint/summons...it's stated that the plaintiff demads judgment against defendant for the sum $$(amount) plus interest at the rate of 6.000% per annum from November 3, 2000 that's before it was ever charged off. How can that happen.

A. This would be an appropriate question to ask when you file your response to the lawsuit.

Q. And does the SOL change when it's sold to a third party?

A. No.