Legal Question in Credit and Debt Law in Pennsylvania

9 Years ago I signed a loan document in the state of PA- It was for a private student loan. Now collections are after me.I thought I consolidated all my student loans many years ago- this slipped through & I was not aware I had this old loan until recently when attempting to get a mortgage. Now its coming up on 7 years (Nov. 14') from the first delinq. I can have it removed soon. Now Collections decided to come for it- I am safe in PA for SOL & I signed the contract in PA, question is- in the signed document it states- under Governing Law:

I understand and agree that 1) Lender is located in OH 2) The note will be entered into OH 3) The lenders decision on whether to lend me money will be made in OH. Consequently, the provisions of this note will be governed by federal law and the laws of OH, without regard to conflict of law rules.

-Does this effect/override the SOL from the state I live and it was signed?


Asked on 3/22/14, 1:21 pm

1 Answer from Attorneys
Rachel Hunter

Yes. It sounds like Ohio law would apply and that you could be subject to the Ohio statute of limitations. I am not licensed to practice law in Ohio but Ohio may have a longer statute of limitations than PA (it may be 8 years).

Statute of limitations has nothing to do with your credit report. Delinquent debts stay on your credit report for 7 years after chargeoff or the debt is sent for collection (about 7 1/2 years from the time of the first delinquency). The fact that the debt drops off your report soon does not mean that you cannot be sued on it.

From what you stated, it might be possible for the lender to sue you in Ohio and get a judgment and then transfer it to PA for enforcement. You should have the papers reviewed by a local attorney who can advise you whether you need to make arrangements to pay the debt or whether you wish to take your chances and hope that you do not get sued.

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Answered on 3/23/14, 11:50 pm


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