Credit Card Disclosure Terms
Author: Linda in VA
Posted: Thu Jul 22, 2004 6:55 pm
Post subject: Credit Card Disclosure Terms
9/10/2001 8:21 pm CDT
Ed,
I recently helped my Mom get a card. I was reading the terms disclosure and they had a really broad definition of "default." It says "you will be in default if....you or your property become the become the subject of attachement, foreclosure,...lien, judgment...."
Well, since I am an insurance agent, some questions come to my mind: What if the cardholder is sued over some other matter than an unpaid debt? There is not distinction made here? Suppose someone walking across my property trips and falls and hits their head on my concrete sidewalk, for instance, and has a head injury. (I know this sounds freaky, but we agents deal with these things all the time - they really do happen). My homeowner's insurance pays the limits, and this person decides to sue me, saying my sidewalk is defective or something. The jury feels sorry for them and awards them some money. Is my credit shot? I mean, there are other kinds of judgments and liens, than someone who didn't pay their debts. It doesn't seem fair that your bank or credit card company can say you are in default because of it.
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Author: Ira Stoller
Posted: Thu Jul 22, 2004 6:55 pm
Post subject: Credit Card Disclosure Terms
9/13/2001 9:45 pm CDT
I would submit a written request for clarification to the credit card company's legal department. Phrase it exactly as you did here. Let's see if you get anything other than a form response. You should.
Posted: Thu Jul 22, 2004 6:55 pm
Post subject: Credit Card Disclosure Terms
9/10/2001 8:21 pm CDT
Ed,
I recently helped my Mom get a card. I was reading the terms disclosure and they had a really broad definition of "default." It says "you will be in default if....you or your property become the become the subject of attachement, foreclosure,...lien, judgment...."
Well, since I am an insurance agent, some questions come to my mind: What if the cardholder is sued over some other matter than an unpaid debt? There is not distinction made here? Suppose someone walking across my property trips and falls and hits their head on my concrete sidewalk, for instance, and has a head injury. (I know this sounds freaky, but we agents deal with these things all the time - they really do happen). My homeowner's insurance pays the limits, and this person decides to sue me, saying my sidewalk is defective or something. The jury feels sorry for them and awards them some money. Is my credit shot? I mean, there are other kinds of judgments and liens, than someone who didn't pay their debts. It doesn't seem fair that your bank or credit card company can say you are in default because of it.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Ira Stoller
Posted: Thu Jul 22, 2004 6:55 pm
Post subject: Credit Card Disclosure Terms
9/13/2001 9:45 pm CDT
I would submit a written request for clarification to the credit card company's legal department. Phrase it exactly as you did here. Let's see if you get anything other than a form response. You should.
posted by CardRatings.com at 11:11 AM
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