Fourth Circuit Holds West Virginia Consumer Credit and Protection Act Statute of Limitations Begins to Run on Acceleration Date


On May 31, the U.S. Court of Appeals for the Fourth Circuit held that the one-year statute of limitations under the West Virginia Consumer Credit and Protection Act (WVCCPA) begins to run on the date the loan is accelerated, and not the date the loan is scheduled to mature. Delebreau v. Bayview Loan Servicing, LLC, No. 11-1139, 2012 WL 1949371 (4th Cir. May 31, 2012). At issue was whether the borrowers’ claim under the WVCCPA, alleging the servicer improperly added fees to their account, was time barred by the WVCCPA’s one-year statute of limitations, which runs from the “due date of the last scheduled payment of the agreement” of the parties. The servicer argued that “the due date of the last scheduled payment of the agreement” was the loan acceleration date declaring the entire loan amount due. The borrowers contended that it was the loan maturity date designated in the loan documents, which in this case was twenty-three years after the acceleration date. Affirming the district court’s judgment, the court held that the acceleration date was the operative date, reasoning that no further payments were scheduled after that date. Therefore, the borrowers’ claims were dismissed as time barred.


Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.