HSBC letter

[Overmylimit]

I got a letter today from HSBC and it says "effective immediately my account will be Governed by federal law and the laws of the state of Virginia whether or not if I live in Viginia or use the card anywhere outside of Virginia" ok what are they pulling now.>

[StartingOver08]

I can't remember if you filed or not Overmylimit, but assuming you did NOT file and are still current - could it be that HSBC is choosing a state SOL that is longer than most other states or has other more favorable laws to creditors?? I don't know what the HSBC letter was in reference to - a credit card or maybe a LOC?

I found this for Statutes of Limitations for Virginia:
contracts
5 years

open account for debt collection
3 years

oral agreements
3 years

promissory notes
6 years

written contracts
5 years

http://www.statuteoflimitations.net/virginia_statute_of_limitations.htm

[catleg]

This is a very interesting paper written by someone at a law school comparing bankruptcy vs civil litigation. I'm not even finished yet but it looks worth a read.

State Court Debt Collection in the Old Dominion: Too Broke for Bankruptcy?

[BigJohn]

I got a letter today from HSBC and it says "effective immediately my account will be Governed by federal law and the laws of the state of Virginia whether or not if I live in Viginia or use the card anywhere outside of Virginia" ok what are they pulling now.>

Is this a busness account?

They might be saying that if they sue, you will be served in the State you are in now but will have to go to a court in Virginia.

[treehugger1]

Catleg, The article is one of many that have been presented/published. There is plenty of evidence that perhaps more folks simply walk away and let the law run its course rather than file for BK This is meant by what i've stated in the past as informal BK. I'm wondering if in an effort to consider the possibility of debtors walking away, if some financial insitutions are working to get into states that are more favorable to their situation.

[BigJohn]

Oh I am sure HSBC moved it cooperate head quarters to VA. The only thing it can effect is if YOU try to sue them and how they manage your account. I know that Delaware has the most creditor friendly law (or they did) and that allows for higher interest rates than in other states etc. Also Delaware imposed a mandatory arbitration clause things like that.

It does not mean if they were to sue you that you have to go to VA. The defendant in state civil cases is never required to travel to a court outside of the county you reside in. In addition what they may be trying to say is that the laws (like mandatory arbitration etc) from VA will apply.

I thinking they should have also sent you a new statement outlining what changes if any on your account and a way to opt out.

If it was a busniess credit card, it might have written in the contract that legal action would be handled in the State of Virginia. Personal and Business agreements are not always the same.

[Overmylimit]

I haven't filed yet, my Attorney was waiting the extra 30 days to see how the Senate Bill was going to do. No I am not current on this account and yes it is a Business account as a matter of fact 90% of all my unsecured is business debt. Good luck trying to get me to Virginia for court......then again a little vacation wouldn't hurt...