What is included in an open-ended credit account?
An open-ended credit account is also known as a revolving account. In these accounts, the creditor has a reasonable expectation of repeated transactions and therefore allows money to be borrowed, repaid, and borrowed again. Open-ended accounts include credit cards and charge card accounts (ex. A department store charge card). Installment contracts, such as one you would take out to pay off a car or a large piece of furniture, are not considered open-ended accounts and therefore not covered by the FCBA. What constitutes as a billing error? Billing errors include: • Unauthorized charges • Charges that list the wrong date or amount • Charges for goods or services that are not accepted or weren’t delivered as agreed • Math errors • Failure to post payments and other credits (ex. returns) • Failure to send bills to the holder’s current address • Charges for which the consumer requests clarification in writing along with a claimed error Refer to the Federal Trade Commission (FTC) for more in
