written contract or open account?

[rmcnellis]

What is the name of your state? montana
i actually posted a question titled "collection interest" and to you, who answered me - THANK YOU soooooo much.
can anyone tell me what the difference is between the written contract and the open account? As i said, the original creditor was discover and the account was opened in 1995 and went to collection in 1997, but has not gone to judgement. it is in my husband's credit report and shows last activity in 1997. we have signed nothing, but have paid $100.00 to the collection. so has the statute of limitations run out or is this considered a written contract? thank you. sorry for being so pesky.

 

[bigun]

In general, a written acount is a loan signed by both you and the lender for a specific dollar amount and specified repayment terms for a specific period of time.
An open accont is a credit card where balances and credit limits and repayment and interest terms can change. The Truth In Lending Act {Reg Z} specifically defines a credit card as an open account. www.creditinfocenter.com has a 5 year SOL for open accounts in Mt. Hopefully Ladynred can find the Mt. law about what it takes to reset the SOL clock.

 

[Ladynred]

I did some digging yesterday, but didn't have a lot of time. I'll try to find it again today. In general, this is covered in the state's statute of frauds. Some state's laws are easier to dig thru than others.....