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Credit Cards: Open Accounts or Written Agreement?


RSB
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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?

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The Truth in Lending Act has nothing to do with collection suits to recover on debts.

I asked my question becasue I found this, and was trying to better understand it:

"Open-ended Accounts: These are revolving lines of credit with varying balances. The best example is a credit card account. Please note: a credit card is ALWAYS an open account. This is established under the Truth-in-Lending Act:

TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part A > § 1602

§ 1602. Definitions and rules of construction(i) The term “open end credit plan” means a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. A credit plan which is an open end credit plan within the meaning of the preceding sentence is an open end credit plan even if credit information is verified from time to time."

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  • 1 month later...
The Truth in Lending Act has nothing to do with collection suits to recover on debts.

I found that when a JDB is acting as the Assignee of the OC they are,

Under U.C.C. 9-318, subject to all defenses which may be asserted against assignor by account debtor.

So TIL applies if your JDB is claiming to be the assignee of the OC.

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