Using OC CC agreement in court against them.
Date: Tue, 09/13/2011 - 22:14
OK, here is my thought. I am curious if anyone has tried to do what the BIG CREIT CARD companies do.
The fees and rules are based on the laws of the CC company state(usually Deleware), because they are usually very favorable to the CC company.
I saw that last year in NY, the NY supreme Court ruled that the SOL of the home state applies to credit card debt, and not the longer SOL of the debtor's state. Since most of the CC companies are in Delaware, the SOL there is only 3 years, which is much shorter than in most states. I also know that most CC agreements have a governing law clause, that states:
[LEFT][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033]Governing Law. This Agreement and any claim or dispute arising out of this Agreement will be governed by applicable federal law and, to the extent state law[/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][SIZE=1][/LEFT]
[FONT=Arial-BoldMT][COLOR=#293033]applies, Delaware law.[/COLOR][/FONT]
[/SIZE][/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT]I know this works in NY because of the case law, but has anyone seen it work in any other states? If so, is there any case law to quote? I know it wouldn't be binding in Texas, but it can be persuasive if enough cases are sited.
The fees and rules are based on the laws of the CC company state(usually Deleware), because they are usually very favorable to the CC company.
I saw that last year in NY, the NY supreme Court ruled that the SOL of the home state applies to credit card debt, and not the longer SOL of the debtor's state. Since most of the CC companies are in Delaware, the SOL there is only 3 years, which is much shorter than in most states. I also know that most CC agreements have a governing law clause, that states:
[LEFT][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033]Governing Law. This Agreement and any claim or dispute arising out of this Agreement will be governed by applicable federal law and, to the extent state law[/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][FONT=Arial-BoldMT][SIZE=1][COLOR=#293033][SIZE=1][/LEFT]
[FONT=Arial-BoldMT][COLOR=#293033]applies, Delaware law.[/COLOR][/FONT]
[/SIZE][/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT]I know this works in NY because of the case law, but has anyone seen it work in any other states? If so, is there any case law to quote? I know it wouldn't be binding in Texas, but it can be persuasive if enough cases are sited.
Interesting point mate. I haven't though about it before. I have
Interesting point mate. I haven't though about it before. I haven't seen it work in other states. May be Soaplady can give some info.
Choice Of Law
I know this has been upheld in Florida also with Capital One vs Pincus, so if you are in Florida "READ THIS CASE". I think it could be used in court or arbitration to bolster claims against the opposition.