“Account Stated” Cause of Action for Debt
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Account Stated is a popular claim that creditors bring in collection lawsuits. Just about every debt lawsuit will include an account stated claim in the petition.
No Contract Needed
To prevail on account stated the creditor does not need a contract. Just by charging on a credit card, and receiving an account statement that was not disputed, they argue the consumer is liable for the full balance of what they are claiming.
Less Evidence Required
Account stated claims are tricky to defend because less evidence is required. If the consumer never received any account statements then it could be argued that there cannot be a claim for account stated. Also, the interest rate of the agreement must also be proved.
Statute of Limitations Problems
The the four year clock under the statute of limitations starts when the “dealings between the parties cease.” When this actually happens is up for debate. Creditors will argue that the dealings between the parties never cease, thus, the statute of limitations for Account Stated never starts. Other courts will say it’s the last payment date.
Another common claim that creditors use is Breach of Contract. If you have been sued by a creditor for a debt, contact us at Weston Legal.