Which state's Statute of Limitations applies?

Question

My husband defaulted on a credit card in 1994. The credit card agreement was entered into in Tennessee, wehre he lived until 2005. He then moved to Ohio in 2006.

A credit collection agency just brought suit against him for the 1994 debt. There is a dispute about which Ohio SOL applies, but the collection agency is alleging that it's the 15 year one. The SOL in Tennessee is 6 years. Is there a statute that prevents the agency from using the Ohio 15 year SOL since the Tennessee one ran years ago?? I think it's often called a "borrowing statute"?

Answer 1

Sorry but the one that applies is the State that your living in now.

But after doing some checking the S.O.L. in Ohio for credit cards is 4-years so your husband is in the clear.

I posted a link in the source box so you can look it up yourself, when you see OH click on the small line that says more and it will pop up.

Answer 2

No, I have to disagree with the first answerer.  A credit card is actually a contractual agreement, and the contract was entered into in Tennessee, so Tennessee law applies.

Answer 3

Send the collection agency a certified, return receipt letter indicating that the SOL for TN is 6 years and that SOL expired long before your husband moved out of TN.  Tell them to cease and desist all further contact.

If they do try to sue, respond to the summons with the information that the debt was incurred in TN and the SOL expired while he still lived in TN.  And show up in court with documentation proving that he lived in TN till 2004.

Chances are the collection agency will back down.   While some collectors have convinced judges in Ohio that credit card debt isn't open account with only 4 years SOL but written accounts with a ridiculous 15 year SOL, it's unlikely they will convince a judge on this one.