I am currently doing some legal research to support a suit that I intend to bring against an OC. I have at 3 separate complains to use in my brief which should be more than enough. Above and beyond my complaints, I found some interesting information that eludes to the fact that once a revolving account is closed, that there may be some different laws that govern the payment of any balance remaining. The rules seem to be rather like the acceleration of payment of a promissory note when in default. I bring this up only because I think this might be important in so much as this may limit an OC from reporting payment history for any lates that occur after an account has been closed. I have a weird case, I was never late until they closed the account at the same time that I applied for a signature loan and was denied. The loan officer reviewing my credit report decided that she should take it upon herself to close my visa cc account because I was currently disputing a visa account with another bank that showed late. Obviously, this one account was enough to have her deny my loan and close my cc...she must have been having a bad day. Does anyone else know anything about cc accounts that are closed with a balance remaining? I have heard that the OC must let you continue to make the same payment schedule as defined in the agreement but I can't find any law stating this. It seems to me that if the OC chooses to stop providing you with a line of credit, that they are either in breach of contract or, at the very least, have terminated the contract. If so, the terms of repayment stated in the contract should no longer be valid. Don't quote me on this, I only have the beginnings of the information, and I may be interpreting it all wrong. I only get a couple hours at a time in the law library so I haven't had a chance to find all the valid citations or discuss it with my lawyer. I am currently awaiting a copy of the original contract with the OC to see if it states any remedies for this type of thing.
I am not sure I understand your question, but here goes. If you are asking what laws govern what interest rate a credit card company can charge you after they closed your account with a balance on it? That is covered under state usury (rate ceiling) laws. What state you look at is the state that the bank that actually issues the credit card operates out of. The two worst states are DE and SD, but the laws are very consumer unfriendly in most states. 26 sates have no cap whatsoever on interest rates. See this story at bankrate.com: "Court decision paved the way Credit card issuers scored a sweeping victory in 1978 when the Supreme Court ruled in Marquette vs. First Omaha Services that it was legal for nationally chartered banks to export more costly terms of their cards to states where the laws regarding interest rates restricted such practices" http://www.bankrate.com/brm/news/cc/19980202.asp Here is a link to general consumer laws: http://www.cardreport.com/laws/summary.html
