Written vs. Open Accounts

[RM123]

What is the name of your state? Colorado

Is a Revolving Credit Card considered a written or open account? Where can I research this information for my state?

 

[Ladynred]

Credit cards are OPEN accounts, NOT written contracts. This is defined in the Federal Truth in Lending Act (TILA): http://www4.law.cornell.edu/uscode/15/1602.html

"(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."

This may or may not also be defined in your state statutes.

 

[RM123]

Ladynred,

Thanks for the reply. Does Federal Law over-ride State Law. Haven't looked at the statutes for CO yet, but wondering how much water does the TILA hold when fighting that a CC is an open vs. written account in a particular state? Thanks for any replies.

 

[Ladynred]

Federal Law usually trumps state law.

How much water would it hold .. its FEDERAL law, you can't get any higher authroity than that !

The relevant CO statute is here:

http://community-2.webtv.net/Y-Chat/WhyChatsCredit/page7.html