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SOL question

The statute of limitations is 6 years for a written agreement and 3 for an open ended account. So how do i find out what category a credit card falls in in TN?
Thanks

Posted: Thu Nov 29, 2007 4:48 pm Subject:

Oral Contract: You agree to pay money loaned to you by someone, but this contract or agreement is verbal (i.e., no written contract, "handshake agreement"). Remember a verbal contract is legal, if tougher to prove in court.

Written Contract: You agree to pay on a loan under the terms written in a document, which you and your debtor have signed.

Promissory Note: You agree to pay on a loan via a written contract, just like the written contract. The big difference between a promissory note and a regular written contract is that the scheduled payments and interest on the loan also is spelled out in the promissory note. A mortgage is an example of a promissory note.

Open-ended Accounts: These are revolving lines of credit with varying balances. The best example is a credit card account. Please note: a credit card is ALWAYS an open account. This is established under the Truth-in-Lending Act:

TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part A > § 1602
§ 1602. Definitions and rules of construction(i) The term “open end credit plan” means a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. A credit plan which is an open end credit plan within the meaning of the preceding sentence is an open end credit plan even if credit information is verified from time to time.

Hope this helps some,
Ang

JamesINTN · Posted: Thu Nov 29, 2007 9:18 pm Subject:

i do believe thou in tn it is 6 years unless i am wrong if so please enlighten me to the 3 year limit

Posted: Fri Nov 30, 2007 1:11 am Subject:

Cresit cards are 6 years in Tennessee.

Posted: Fri Nov 30, 2007 6:46 am Subject:

U can check the SOL here: budhibbs.com/statute_of_limitations.htm
Ang

Posted: Fri Nov 30, 2007 7:55 am Subject:

Credit cards are six years in Tn due to strange statute language and plaintiff case laws.

Posted: Fri Nov 30, 2007 7:58 am Subject:

Ang just so you know TILA has nothing to do with sols in state law. The individual statute or case law will define the sol for civil action and some states have ruled credit cards as written contracts. Our glorious state(La.) has ours defined quite well along with some case law to back it up.