You posted this in a thread I was reading "if any CC continues to charge interest they must send a monthly statement showing this amount. after a charge off occurs the interest that is calculated is usually determined by the signed contract. no signed contract = no proof that the acct belongs to you and that these are the terms are agreed upon. the debt may not be legally collectable if that is the case deletion must occur as I just forced cap 1 to do lol" Could you please provide me with references to your above statements? I will greatly appreciate it. I am having snags with Cap 1 myself. Thank You
This is pure hog wash. As per 226.5(b)(2) of Regulation Z: (2) Periodic statements. (i) The creditor shall mail or deliver a periodic statement as required by Sec. 226.7 for each billing cycle at the end of which an account has a debit or credit balance of more than $1 or on which a finance charge has been imposed. A periodic statement need not be sent for an account if the creditor deems it uncollectible, or if delinquency collection proceedings have been instituted, or if furnishing the statement would violate Federal law. (ii) The creditor shall mail or deliver the periodic statement at least 14 days prior to any date or the end of any time period required to be disclosed under Sec. 226.7(j) in order for the consumer to avoid an additional finance or other charge.10 A creditor that fails to meet this requirement shall not collect any finance or other charge imposed as a result of such failure. As per case law, ECOA, Regulation Z, a signed contract is not needed to establish liability for a credit card.
I agree with Enigma's post; if you use the CC/account, your are accepting the terms and conditions, and entering into the credit agreement.
Thank you for your info/opinion. I was really trying to get at what fun4u2 was trying to get at. Wanted to know what that post was based on. I'm hoping fun4u2 will answer.
and by the way, what if you don't use the cc? What if they can't prove you used the cc? Is there simple assertion enough to do whatever they want as far as reporting and collections?
It must have been an old post. Fun hasn't been here since March, so I doubt that you'll get an answer. Enigma and Biz are right. There doesn't need to be a signed card agreement to form a contract. And any time they send new terms, your use of the card after the specified date implies your acceptance. You will always see a date that the new terms become effective. They don't have to send a statement. If there is ever a lawsuit, they will have records showing when you used the card. That will determine what terms apply. Those terms, along with state laws, determine how much interest they can charge and how it will be computed.
