Know Your Rights with Credit Card Companies!

A BIG WIN for consumers!  $311,000.00 verdict in Fair Debt Collection Act case has been upheld by the 9th Circuit Court of Appeals.   You can read about the case here.

In the last two years that Credit Card companies have been aggressively filing lawsuits on old credit card debt.  One of the important things a consumer should know is that there are laws to protect them from these lawsuits.

In Kentucky, a credit card debt is an open account, or merchant account.  The statute of limitations for filing an action on these accounts is five years.  However, every time a consumer makes a payment the five year statute start again.  The Kentucky Revised Statutes 413.120 (10) governs open accounts.

Also, in Kentucky once a credit card company sells your account to a third party collection agency the debt then becomes a “bill of exchange” under the uniform commercial code.  The statute of limitations for an action on a bill of exchange is 5 years. KRS 413.120(8) governs bills of exchange or promissory notes that are place on the footing of a bill of exchange.

If you get sued by a credit card company or any debt collector, you should make sure you file an answer to the suit within 20 days!  Do not give up and let them have a default judgment.

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Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”


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