Expert: Jason Shear, Esq. - 10/21/2008

Question
I was "served" a summons for my sister regarding an old credit card debt.  She used to live in Maryland but I had to move her by me in Wisconsin in 2002 due to becoming disabled.  The complaint states that she received monthly bills regarding the debt which neither she or I have received.  The SOL in Maryland is 3 years and it shows in the complaint that the original CC company charged off the debt in July of 2005.  Is this not a time-barred debt now?  The FDCPA, Section 811 of the law states that the debt collector can bring only such action in the judicial district in which the consumer signed the contract sued upon or in which such consumer resides at the commencement of the action.  Since my sister is not in Maryland anymore where the alleged CC contract/charges were incurred, shouldn't this case be dismissed?  This situation is so confusing since there are so many avenues that could be taken for us in this case.

Thank you very much for your response.

Answer
Linda:

Hope all is well.  Sorry to hear your sister has to deal with one of these debt purchase collection companies.  Let me break down your question so that the answer is easier to understand and to make sure I hit all the important points.

1) You wrote the complaint states she received monthly statements.  Every debt collection complaint I see has this in it.  Most collection law firms send out the same complaint with just minor differences in them.  This is their argument that the money was demanded by the consumer and the consumer has notification that the amount has been asked for.  

2) You mention the SOL for MD and the venue requirements of the FDCPA.  If you notice, the FDCPA says "or" where the consumer resides.  The collection attorney will argue that Wisconsin's 6 year SOL applies since that is where your sister currently lives and used the card.  I am assuming she used the card in WI since you state the charge off was in 2005 and she moved to WI in 2002.  However, even if you do not have a SOL defense you can still win this case.  

If you need help to walk you through what to do in regards to this case please do not hesitate to call.  If I were to type out every step a consumer should take in defending a consumer credit case, and hit every point, this answer would be the size of a small book.
Again, please do not hesitate to call 9:30am to 8:30pm EST.

Jason Shear, Esq.
NY Consumer Attorney
716-566-8988