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01-18-2010 10:25 PM
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.
01-19-2010 01:49 PM
01-19-2010 02:53 PM
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.
01-19-2010 05:07 PM
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.
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.