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Valued Contributor
nothingman02
Posts: 1,072
Registered: ‎02-15-2009

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.

Mega Contributor
Creditaddict
Posts: 18,905
Registered: ‎10-23-2007

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
Fico Scores: EQ 657 Cabelas, TU 665 GE, EX 699 Wells (07-27-14)
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Valued Contributor
nothingman02
Posts: 1,072
Registered: ‎02-15-2009

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

huh?
Mega Contributor
Creditaddict
Posts: 18,905
Registered: ‎10-23-2007

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

I didn't understand your post 

Fico Scores: EQ 657 Cabelas, TU 665 GE, EX 699 Wells (07-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008

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. 
Valued Contributor
nothingman02
Posts: 1,072
Registered: ‎02-15-2009

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

Moving on....

 

Anybody?

Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008

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.  

Valued Contributor
nothingman02
Posts: 1,072
Registered: ‎02-15-2009

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

Thats ok. Thanks. :smileyhappy:
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

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.

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008

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.

 

 

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