Do Creditors Have More Time To File Lawsuits Because Of Covid-19?
In general, a statute of limitations requires that a plaintiff bring a lawsuit within a specific timeframe of the cause of action occurring or when the plaintiff found out about the cause of action or should have found out about the cause of action. The statute of limitations varies depending on the crime being committed. For example, the credit card statute of limitations in New York is three years.
If you are dealing with credit card debt as we hopefully emerge from the COVID-19 era, you may be thinking:
- How did Covid-19 affect the statute of limitations for credit card debt?
- What was the purpose of Executive Order No. 202.8?
- How are courts applying the Executive Orders to credit card debt cases?
If you or someone you know is dealing with credit card debt that may result in a lawsuit or has already filed a complaint, contact an experienced consumer debt attorney. The attorneys at Law Office of Simon Goldenberg, PLLC will review your case and provide relevant information concerning the best strategy to defend your case. To schedule a free consultation, contact us at 888-301-0584 or online.
How Did Covid-19 Effect The Statute Of Limitations For Credit Card Debt?
During the Covid-19 pandemic, many things have been paused, tolled, or suspended, including the statute of limitations for credit card debt. When the statute of limitations has tolled, it has essentially been paused, so if the creditor had 2.5 years to file their claim when the executive order was issued, they would still have 2.5 years when the statute of limitation goes into effect again.
Executive Order No. 202.08
Executive Order No. 202.08 tolled the statute of limitations for the period until November 3, 2020. Subsequent executive orders extended the statute of limitations tolling until June 19, 2021.
What Was The Purpose Of Executive Order No. 202.8
The purpose of executive order no. 202.8 was to toll the statute of limitations for certain criminal law, civil law, and family issues because the court systems were essentially at a standstill. As a result, of many courts essentially shutting down or only holding zoom trials, there was a massive backup in cases, and to avoid adding to that clog, it is likely that Governor Cuomo thought the Executive Order would help.
How Are Courts Applying The Executive Order To Credit Card Debt Cases?
Several cases interpreted Executive Order No. 202.8. The courts found that the executive order did suspend the tolling period for the timeframe of the executive order suspensions. In the end, it appears that the credit card debt statute of limitations was extended for 228 days if a cause of action occurred less than three years before the first executive order went into effect on March 20, 2020, or after the executive order went into effect but before it expired. For example, if the cause of action occurred ten days before the executive order went into effect, the creditor would have 1,085 days after the June 19, 2021 expiration. Therefore, they have until June 8, 2024.