Re: What's proper validation?
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Posted by LadynRed
(199.91.33.254) on October 22, 2003 at 13:52:23:
In Reply to: What's proper validation? posted by WHATEVER on October 22, 2003 at 13:34:11:
A credit card agreement is NOT a 'negotiable instrument'.. and neither is it a promissory note. It is an open-ended agreement and THAT is defined in the Federal Truth in Lending Act. The definition of a promissory note is: "An unconditional, written and signed promise to pay a certain amount of money, on demand or at a certain defined date in the future. Contrary to a bill of exchange, a promissory note is not drawn on any third party holding the payor's money; it is a direct promise from the payor to the payee." A cc agreement is NOT a written contract, as already stated, per the TILA. A CHECK is a negotiable instrument - you can 'exchange' it for cash and is accepted in lieu of cash as payment for debts. You simply cannot do that with a credit card agreement.
"NEGOTIABLE - An instrument is negotiable when the rules of law allow it to be traded between parties and good faith holders (Holders in Due Course) receive the instrument free of most defenses. A promissory note, properly drafted, is a negotiable instrument. That which is capable of being transferred by assignment; a thing, the title to which may be transferred by a sale and indorsement or delivery. A chose in action was not assignable at common law and therefore contracts or agreements could not be negotiated. But exceptions have been allowed to this rule in relation to simple contracts, and others have been introduced by legislative acts. So that, now, bills of exchange, promissory notes, bills of lading, bank notes, payable to order, or to bearer, and, in some states, bonds and other specialties, may be transferred by assignment, indorsement or by delivery when the instrument is payable to bearer. When a claim is assigned which is not negotiable at law, such, for example, as a book debt, the title to it remains at law in the assigner, but the assignee is entitled to it in equity and he may therefore recover it in the assignor's name. " What constitutes proper validation ? 1 - a copy of the agreement with YOUR signature on it
AND 2- a full accounting of the entire account, from day 1, showing all charges, payments and fees, etc., to prove the total of the alleged balance owed. You can find the reasoning behind this in the FTC Wollman opinion letter AND the Spears v. Brennan case.
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