Topic: New york State laws,uniform Commercial code 2-725

[motherofmany]

I'm reading New york State  laws,uniform Commercial code 2-725 on the SOL on store card .

 "An  action  for breach of any contract for sale must be commenced "
  within four years after the cause of action has accrued. By the original
  agreement the parties may reduce the period of limitation  to  not  less
  than one year but may not extend it.

So the SOL for a Store card like sears,Jcpenny,Macy's would Be 4 years from last payment.

Anyone familiar with this!

[macbethany]

Hi,

I see there were no answers to this question...so I thought a "re ask" might get it moved up and into some expert territory.

I also would like to ask for any advise regarding UCC (particularly NYS) in terms of how a store charge card (like sears) would be governed in terms of SOL (legal-not reporting)  I know that someone (I think it was Fly ...can't locate the post now)
 said that it didn't matter when the last purchase was (in my case 1998) but when the last payment was made (in my case 4 years ago).
Any thoughts on the use of NYS UCC which has a SOL of 4 years not 6?
The account was never used for anything other than sears merchandise last purchase in 1998. Last payment was more than 4 years ago ...state UCC says 4 years from cause of action account charged off in 2005. 
Any thoughts would be appreciated

[maylaur]

Not paying would certainly constitute breach of contract.

Q for the experts:  Are store cards treated differently than other CCs? 

[macbethany]

Also, because citi took over the portfolio of sears cc would this automatically change the original store card agreement into the longer open account status?
Only purchases made were directly through sears card in sears store. No citcard was issued or used..just the billing reverted to them

[Mischievous Smurfy]

Not paying would certainly constitute breach of contract.

Q for the experts:  Are store cards treated differently than other CCs?

Depends on state law and case law...

Its my understanding that "store cards" such a sears cards are not open accounts in Florida ... whereas another card that is not a store card is an open account. 

I forget what the specific SOLS are ... and this is just an example ... you need to research the issue in your state.

[Admin0248]

More detailed discussion of Florida state statutes and interpretation is available at www.floridadebtor.com .

[macbethany]

Does anyone know the NY version or where I might be able to research?
Thank you!

[maylaur]

I don't know if it will have what you need, but you can search at http://www.nysenate.gov/legislation for laws pertaining to credit cards.

[macbethany]

Thank you!

I'll give it a try!

[Mischievous Smurfy]

actually there was a quite memorable discussion on the commencement of the SOL in NY a while back...

they don't use the terminology Date of first delinquency but the method of determining what date gives rise to a cause of action is the same as DOFD.

[montag]

In every cc agreement I've seen, there is a clause stating 'the laws of [State] govern this contract' or something similar.  You need to check the contract to see what state laws apply.

[Kitten]

"By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it."

I would interpret that as saying that a contractual agreement, like a choice of law provision, can reduce the SOL but not extend it. Doesn't mean I'd necessarily win, but that's the argument I'd make.

[motherofmany]

Hi,

I see there were no answers to this question...so I thought a "re ask" might get it moved up and into some expert territory.

I also would like to ask for any advise regarding UCC (particularly NYS) in terms of how a store charge card (like sears) would be governed in terms of SOL (legal-not reporting)  I know that someone (I think it was Fly ...can't locate the post now)
 said that it didn't matter when the last purchase was (in my case 1998) but when the last payment was made (in my case 4 years ago).
Any thoughts on the use of NYS UCC which has a SOL of 4 years not 6?
The account was never used for anything other than sears merchandise last purchase in 1998. Last payment was more than 4 years ago ...state UCC says 4 years from cause of action account charged off in 2005. 
Any thoughts would be appreciated

What I found out is !

Yes,  the SOL is fours years for store credit cards.

However, they can still sue you.  It does not mean that they will prevail.   The SOL defense is an affirmative defense that must be raised in your answer.  You can also raise the affirmative defense that the plaintiff lacks standing as well


 

Also, because citi took over the portfolio of sears cc would this automatically change the original store card agreement into the longer open account status?
Only purchases made were directly through sears card in sears store. No citcard was issued or used..just the billing reverted to them

into play  i am unsure !

[motherofmany]

I would agree with kitten!

"By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it."

I would interpret that as saying that a contractual agreement, like a choice of law provision, can reduce the SOL but not extend it. Doesn't mean I'd necessarily win, but that's the argument I'd make.

take a look at this site
 http://law.justia.com/newyork/codes/uniform-commercial-code/
I hope it helps!

[Doctor Evil]

motherofmany:  unless I'm missing something, and you are talking about business debt, the UCC has no applicability to your situation.