Are CC's open-ended accounts or written contracts?

[E16]

The SoL in my state is 3 years for open-ended accounts and 6 years for written contracts.  I have two charged off CC's (5 years in that status) that I need to get taken off of my CR.  I'd like to make sure I'm outside of the SoL before sending any PFD's...don't wanna wake the monsters.  After doing some research, some people say the courts consider CC's to be written contracts but others say CC's are open-ended accounts.  Any input??  Should I post this in the CC section?  Thanks a bunch!!

[Anonymous]

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@E16 wrote:

The SoL in my state is 3 years for open-ended accounts and 6 years for written contracts.  I have two charged off CC's (5 years in that status) that I need to get taken off of my CR.  I'd like to make sure I'm outside of the SoL before sending any PFD's...don't wanna wake the monsters.  After doing some research, some people say the courts consider CC's to be written contracts but others say CC's are open-ended accounts.  Any input??  Should I post this in the CC section?  Thanks a bunch!!

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Credit cards are exactly what an "open account" refers to.  They are open because you can continue adding spending to them.  A written contract would be something you signed for a one time loan or service and agreed to pay a certain amount or certain payment plan (ie student loan, mortgage, auto loan, personal loan, etc).

[themeggerz]

Be aware, though, a LOT of credit unions have all their personal and installment loans as "open end" because CUNA allows us to add on to loans up to our own lending requirements.  

[aerochick31093]

Make sure that in your state that credit cards are considered open-ended accounts. In Georgia they are not, they are considered written contracts.

[Anonymous]

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@aerochick31093 wrote:

Make sure that in your state that credit cards are considered open-ended accounts. In Georgia they are not, they are considered written contracts.

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Interesting.  What does Georgia consider an open-ended account then?

[aerochick31093]

You got me!  There was a case in 2008, Hill vs American Express http://caselaw.findlaw.com/ga-court-of-appeals/1131402.html  Hill was sued and stated the SOL had passed which was 4 years for credit cards and the judge did not agree and said it was 6 years and a simple contract.

[Anonymous]

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@aerochick31093 wrote:

You got me!  There was a case in 2008, Hill vs American Express http://caselaw.findlaw.com/ga-court-of-appeals/1131402.html  Hill was sued and stated the SOL had passed which was 4 years for credit cards and the judge did not agree and said it was 6 years and a simple contract.

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Wow, who am I to question a judge and appellate judge, but that just seems really odd to me.  I would think it would seem obvious that the open-ended SOL was meant for credit cards if there is nothing else it goes to.  That certainly sucks for Georgia.

[E16]

Well that's the thing, the law is so vague.  It gives the court system so much room to self interpret it.  I can't seem to grasp how a credit card could be a written contract.  I recall applying online without signing any contracts.  Plus, I would think, CC terms change every time we use it and or pay the bill, depending on how much is used or paid.  Credit cards can be open forever or it can be closed at any time.  Does not seem like a written contract to me.  I'll do a little more research or even contact the AGO.  I don't want to shoot myself in the foot by sending PFD's.  

[pizzadude]

Credit cards are almost always considered open accounts.   The exception in GA is the only reference that I have ever seen where they were considered to be a written contract, so unless you are in GA I would go with the SOL for open accounts.