Open Ended contract a written agreement?

[jjmakelvy]

Hello. Your website is great but it does not clarify whether an "open-ended account" like a credit card is considered a Written Contract or a Written Account according to the states' various statutes of limitations. My lawyer here in Ohio says that a credit card is subject to the Written Contract statute which is 15 years, as opposed to the Written Account statute, which is only 6 years. If this is the case, what then would be an open-ended account that is only subject to the 6-year statute? This makes a huge difference to me as I'm fighting an old debt. Thanks Hb

[anything]

To answer your question typically (almost always) a credit card is considered a “open ended account” because it is “REVOLVING” and credit can be re-used after repayment is made. There are certain circumstances that will change it to a different type of agreement such as 1) if there contract or cardholder agreement states otherwise 2) if there is a “seal” within the agreement that prolongs the statute 3) if a judge rules otherwise. Hope your attorney has charged you too much!

[leonard]

Debt and Credit Terms YOU Should Know:

Breach of Sale:
To break a contract; to not honor an agreement

Contract Under Seal:
Any written instrument with a raised or wafered (wax) seal or with the words "contract under seal", "under seal", "sealed" or similar words written in the text.

Default Judgment:
Granted to the plaintiff due to the defendant's failure to act (usually the defendant fails to appear in court)

Deficiency Claim:
Used when products or services are lacking in some way or are likely to fail or become defective or have already failed.

Note:
A simple promise by one party to pay money to another party.

Draft:
An order one person (the drawer) to pay another person (the drawee), demanding that the drawee pay money to a third person (the payee).

Demand Note:
Instrument of credit where the creditor (lender) can call in the note (demand payment) at any time. Can be written or unwritten.

Domestic Judgment:
Judgment awarded by a court in state where the debtor resides.

Foreign Judgment:
Judgment awarded by a court from any state other than the state where the debtor resides.

Judgment:
The final decision or disposition of a court in a legal proceeding that defines how much money is awarded, to whom and any appeal rights.

Judgment Proof:
Having insufficient assets to satisfy a money judgment. However a more accurate term is execution-proof because the collector was awarded a judgment but still has to collect the money (the court does not collect money) and if the debtor has no money then the judgment is useless.

Mechanic's Lien:
To secure payment for labor or materials supplied in improving, repairing, or maintaining real property. (Usually difficult to obtain)

Note payable at Definite Time:
Promise by one party to pay money to another party no earlier than at some specified future date.

Open Accounts (open-ended credit):
Line of credit that may be used over and over again, including credit cards, overdraft credit accounts, and home equity lines of credit, store revolving accounts and other similar credit accounts.

Oral Contract:
An unwritten agreement between two or more parties. Often confused with verbal contract , informal contract, and verbal contract which are legally different from an oral contract.

Probate Claims:
Claims on real property, typically on the estate of the deceased.

Promissory Note:
An unconditional promise in writing to pay a person a sum of money.

Sale of goods under the Uniform Commercial Code:
Transactions for the sale (and leasing) of goods is governed mainly by sales laws of each state. Every state, with the exception of Louisiana, has adopted, Article Two of the Uniform Commercial Code (UCC) as the main body of law regulating transactions in goods. Goods are defined as all things movable and identified to the contract of the sale. It does not include secured transactions, leases, money exchanged as the price, or real property (land and property permanently attached to a piece of land). To be identified to the contract a good must be existing and one of the objects that is or will be exchanged. Transactions between merchants and consumers and those solely between merchants are regulated by Part Two. All transactions that are for more that $500 must be in writing.

Simple or Implied Contract:
Contract that is not under seal and can be expressed or implied, and oral or written.

Tolling (Toll):
The term “toll”, “tolled”, and "tolling" are used in almost all statute of limitations rules and it means to "stop the running of a statutory period for a certain period of time".

Unaccepted Drafts:
An instrument of money was rejected i.e. non-sufficient funds (NSF), returned check, dishonored check or draft, bounced check.

Uniform Commercial Code (UCC):
Law that governs the sale of goods and credit transactions separate from the civil and criminal laws. Covers the sale and distribution of goods, negotiable instruments, and the financing of credit transactions on the security of the goods sold.

Uniform Consumer Credit Code:
Law to protect consumers obtaining credit to finance their transactions; to ensure that adequate credit is provided, and to govern the credit industry in general. Seven states and Guam have adopted the code.