Legal Question in Credit and Debt Law in Virginia

Re: Is a credit card application a signed contract?

Standing by itself, no. Be careful to study the

application in detail, however. Often there is

a statement that says "I agree to pay" or "I

agree to be bound by the terms and conditions,

etc."

Now, some careless judges may improperly assume

that it is a contract, and you would have to

challenge it and be prepared to argue the point.

However, typically credit card holders are

deemed to have agreed to a contract because

they were sent a copy of the terms and

conditions and then responded by USING the credit

card KNOWING the terms and conditions that

would apply. By using the credit card, and

receiving the benefits of the products purchased,

one would be responsible.

It is possible to agree to a contract through

ACTIONS instead of by a signature. For example,

a classic example, you post signs saying "$100

reward for return of Rusty, the family dog."

Someone goes out and finds Rusty and brings him

back. You have a contract and must pay $100

for return of the dog. Nobody signed anything,

and you didn't even know the person until they

showed up at your door with the dog. But you

still have a contract anyway, through actions.

However, in such a case this would be a VERBAL

contract, subject to a 3 year statute of

limitations (watch out, though, it is counted

from the last time products were charged OR the

last payment date, whichever is later), and

you would NOT be responsible for attorney's fees

or interest higher than 6%.

You could argue that your signature on the

invitation to apply was only your authorization

to have your credit records checked, which is

accurate.

However, running on momentum and custom rather

than logic or the law, many judges may treat

the application as a signature on a contract,

even though that is probably wrong.