March 19, 2010

By: Shaun Ertischek, Esq.

A 56-year old Florida consumer hired an experienced consumer attorney to defend a collection lawsuit filed by Capital One Bank based upon the argument that Virginia’s three-year statute of limitations applied to the account, as stated in the cardholder agreement, rather than to Florida’s four year statue of limitations governing credit card debts.  The debt was three and a half years old and the court ruled in the consumer’s favor.  The court said that the cardholder agreement was “an oral contract subject to Virginia’s three year statute on limitation which was violated by the filing of this action in excess of three years from the date of the last transaction.”  The consumer then filed a federal lawsuit under the FDCPA against the collection law firm that sued him and received a $120,000 settlement.