Oregonians have a newly founded disadvantage in recovering from their credit card debt. Instead of applying the 3-year statute of limitations on credit card debt from creditors based in states with a 3-year statute of limitations, the Oregon Court of Appeals extended the debt law to Oregon’s own 6-year statute of limitations, effectively giving all the credit card issuers another three years to collect from Oregon consumers.
Adding Insult To Injury
The extension is sure to affect thousands of Oregonians, but it goes even further. Creditors who are normally limited to a 3-year timeframe in their home state aren’t bound by their state’s laws. That means out of state credit card companies can sue debtors in Oregon because of the new statute of limitations.
Credit Card Company Lawsuits
Some credit card companies steer clear of lawsuits because they are costly. Forcing a debtor into bankruptcy may result in receiving much less than it costs to sue. Instead of attempting to recover money in court, they hand off the debts to collection agencies or negotiate a settlement.
If a credit card company does decide to sue, some of them always will, you might end up owing the debt plus interest, penalties, court costs, and attorney fees. Depending on the state, that can be done through levying paychecks, garnishing bank accounts, or both.
How To Defend Yourself
If you are sued and the creditor receives a judgement, it will be on your credit report for 7 years from the time of filing. So if you receive a summons, it’s imperative to get in touch with a debt relief lawyer familiar with debt law in Oregon. They will help you reply to the summons and minimize the potential damage the process can have on your financial future.
Since the statute of limitations on credit card debt has been extended, Oregonians can’t relax after three years. The best way to prevent a potential lawsuit is to get in touch with us today and we’ll make sure your future is secure.