Is A Credit Card An Open Account?

RSB · #1 05-01-2007, 05:16 PM

[COLOR="Red"]A credit card is an open account, correct? A credit card is not a wriiten agreement. The Truth in Leading Act establishes this. I am wondering if some states can refuse to acknowledge the Truth in Lending Act statement that says a credit card is an open account?[/COLOR]

aaron · #2 05-01-2007, 05:43 PM

Each state has its own statutes and creates its own statutes of limitation.

Betty3 · #3 05-01-2007, 06:15 PM

Right! There has been much debate recently whether credit cards are open accts. or written contracts. More & more states/courts are starting to consider them as written contracts. As Aaron indicated each state has its own SOL & the courts in each state decide whether to use the open acct. or written contract SOL re credit cards.

RSB · #4 05-08-2007, 11:09 PM

[COLOR="Red"]I just found out the US Truth in Lending Act states all credit cards are open accounts.[/COLOR]

GreatGadsby · #5 05-09-2007, 03:38 AM

TILA doesn't matter for SOL purposes, consult the statutes of your state!

jk · #6 05-09-2007, 10:00 AM

a though has occured to me (that;s like a WOW moment for me).

can a credit card account, while it is an open and usable account be considered an open account be converted to a written contract situation? Since the account is no longer usable, it is in actuality not an open account. The terms of these accounts often change once they are deemed unusable any longer.

that would explain the acceptance of the states considering a CC account as a written agreement rather than an open account, would it not?

just a thought (remember this, they are like eclipses. they don;t happen very often but man, when they do, they are impressive

)

aaron · #7 05-09-2007, 05:06 PM

I don't know of any state which imposes such an automatic transformation of an open account once it is no longer in use. That would seem to defeat the purpose of having an open account specifically recognized within a statute of limitations.

jk · #8 05-09-2007, 05:08 PM

true, but since when has the law made logical sense?

it was just a thought. Maybe not quite an eclipse

Betty3 · #9 05-09-2007, 05:44 PM

Quoting RSB

[COLOR="Red"]I just found out the US Truth in Lending Act states all credit cards are open accounts.[/COLOR]

Actually, the TLA refers to open END accts - there is a difference between an open end acct. & an open acct. However, we will not get into that. You just need to know the SOL for credit cards in your state - your state statute.

jk · #10 05-09-2007, 09:00 PM

there has been a lot of talk on the "site that remains without a name" about this. Some of the folks there have cited states that do treat a CC account as a written agreement when it comes to the SOL.

I don;t understand it myself but that is what they are claiming.