Question

I live in Alabama and the Statue of limitations on Open Accounts is 3 years. A collection agency is after me for an old Visa credit card debt. The lawyer I hired suggests that I settle because it is not an open account but a written contract account which has a SOL of 6 years. The collection agency provided a proof that I have signed the credit card application. The research that I have done mostly state that it is an open account but found one in wiki where a  credit card could be a written  contract. I want to know if my attorney is right before I go to court. I need facts not opinions.

Answer

A credit card account is legally defined as an “open” account by Truth in Lending Act (TILA). A term is not considered a Written Contract or A signed slip and so is a statement. In their minds, having all of these makes it one, but you must link them together and not ONE OF THEM has everything along with your signature on it to make it a written contract. This is probably because you agreed to all the user agreement that makes it binding. If you’re not sure, you could try contacting another attorney from Legal Aid for a free second opinion, but I do not think that your attorney would give you wrong information.