cancel
Showing results for 
Search instead for 
Did you mean: 

What kind of an account is a Credit Card?

Valued Contributor

What kind of an account is a Credit Card?

Open ended OR a written contract?

 

The TILA (Title 15, 41,I, part A, § 1602) establishes that credit cards are open ended a/cs. This is a federal statute.

 

But more and more judges are construeing them to be written contracts. There is also a case law that came out of GA last year.

 

So what would be it really? How would you convince a least sophisticated judge? Especially if the state statutes are not clear about what would constitute an open ended a/c.

Message 1 of 17
16 REPLIES
Epic Contributor

Re: What kind of an account is a Credit Card?

can you tell me what the difference would be or why it might matter? the only time you are going to be in court over a credit card is in bk and you still are not meeting with your creditors or anything
Message 2 of 17
Valued Contributor

Re: What kind of an account is a Credit Card?

huh?
Message 3 of 17
Epic Contributor

Re: What kind of an account is a Credit Card?

I didn't understand your post 

Message 4 of 17
Super Contributor

Re: What kind of an account is a Credit Card?

It's a written revolving account.  Each time you swipe the card and sign the receipts, you renew the contract until you cancel the card. 
Message 5 of 17
Valued Contributor

Re: What kind of an account is a Credit Card?

Moving on....

 

Anybody?

Message 6 of 17
Super Contributor

Re: What kind of an account is a Credit Card?


nothingman02 wrote:

Moving on....

 

Anybody?


Well I tried. Sorry.  LOL  Email one of your banks.  Maybe they  would have a better madeup answer.  

Message 7 of 17
Valued Contributor

Re: What kind of an account is a Credit Card?

Thats ok. Thanks. Smiley Happy
Message 8 of 17
Senior Contributor

Re: What kind of an account is a Credit Card?

It is obviously a matter of legal controversy...

 

however, it really isn't. It's an open ended agreement in as much as the amount is not fixed. The SOL for an open ended agreement should be applicable.

 

If that won't do you'll have to consult a few dozen judges until you get a few dozen varied answers and give up in disgust.

Message 9 of 17
Senior Contributor

Re: What kind of an account is a Credit Card?

Individual States interpret financial transactions and contracts differently.  So, just as SOL will vary from state to state, so will interpretation on type of account.

 

I'm not sure that there is mutual exclusivity between an "open ended" and "written contract" since you do have a written contract which states the terms of use, even though the account is revolving.

 

NFCU classifies it's NAVcheck LOC as an "open ended" credit contract.  When you apply they actually send you a written note and contract which you must physically sign and return...whereas the credit card you can apply and be approved online and the only "signature" you make is on the back of the card or with the merchant, which generally states on the transaction, "I agree to pay the charges according to my cardholder agreement" which constitutes a signed contract both for the credit agreement and the transaction.

 

Usually the card and its terms state "use constitutes acceptance" of the cardholder terms.  Further, when you use a credit card, the fact that financial consideration with promise to pay meets the litmus of a contract.  A contract requires two parties, a meeting of the minds (terms and agreement), exchange of consideration, etc.

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Message 10 of 17