Re: Open Account

Posted by Why Chat (209.240.198.61) on April 03, 2003 at 19:10:24:

In Reply to: Re: Open Account posted by patti on April 03, 2003 at 16:57:59:

A credit card account is a contract that is written, and the application is signed (usually).

However, to fulfil a State and Federal legal defintion of a "written contract" it would have to be a "closed-end" contract for a specific term at a fixed rate of interest,for a specific amount.

That is why it is called an "open" account, it is open-ended, with a revolving line of credit and no specific term.

Each State has it's own definition of contracts that fulfil the reqirements of being a "contract in writing", they all require that such contracts be "closed-end".

That is why credit card accounts are not subject to State SOL's for "written contracts".

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