No signed contract with creditor?

[lotsahats]

It just occurred to me that one of the cards I recently defaulted on, I did not actually sign an agreement with them.

I got the card while I was out shopping. I was at the checkout counter, and the cashier asked me if I would like to apply for a store card, for a discount on my purchase. Normally, I would have declined, but I was distracted, trying to calm my infant son, who was very upset, so when she said "store card" I was thinking "gift card" (and I think the cashier could see how distracted I was). It didn't even throw me when she asked for my SSN. I didn't realize until I got my boy home, fed, and napped, that I had paid for my purchase with a credit card that would soon arrive in the mail.

This really is a moot point, since I'm going to file bankruptcy in a few months, but I was just wondering if the fact that I didn't sign anything is something that would work in my favor. Do I have a legally binding contract with them?

[mountanddo]

I am guessing you do unless you'd be willing to claim fraud and someone else opened up the account with your SSN.

[Freddy03]

By using the card and signing the receipt you agree to the terms of the card. Signed contracts are not needed to prove the card was yours.

If you have made purchases and payments on that credit card a judge will say you agreed to the terms.

I tried to use the "no signed contract defense" in my court case and I was laughed at by the judge.

[HHM]

By using the card and signing the receipt you agree to the terms of the card. Signed contracts are not needed to prove the card was yours.

If you have made purchases and payments on that credit card a judge will say you agreed to the terms.

I tried to use the "no signed contract defense" in my court case and I was laughed at by the judge.

That is correct, once you use it, it's yours. Sorry

The law really is not as "technical" as people assume.

Same thing is going on with the "produce the note" yahoo's, it might stop a foreclosure from a particular entity, if your lucky, but it doesn't get you a free house and doesn't change the fact that you were PAYING on a mortgage and eventually stopped paying. The fall back is what is called "equitable mortgage", which is the idea that even if the lender cannot produce the note, both sides ACTED as if a mortgage existed, you made payments, the lender collected payments and applied it to your account.

Bottom line, even in law, ACTIONS SPEAK LOUDER THAN WORDS

[DYLAN150]

Is it true, that it's rare for creditor to have the original contract? Also, that all they need is monthly statements?

[ttg1]

Is it true, that it's rare for creditor to have the original contract? Also, that all they need is monthly statements?

Like anything else in the law, it depends. In principle HHM is correct that actions speaks louder than words but it all depends on how effective the other attorney is at making their case in court. Most law firms that actually sue are doing it on volume and the paperwork is done by some poor paralegal making $10/hour. The goal is that you will see the lawsuit and fold. They don't really expect you to go into court and argue the nuances of the difference between breach of contract and unjust enrichment. Just remember that no matter what a creditor says you don't owe the money until the judge says you do. Claiming you owe the money and getting an enforceable judgment is two entirely different things; there is many a slip between the cup and the lip.

BTW, the 'monthly statement' bit is all under a legal theory called 'account stated'. What account stated means varies from state to state. In some states it does literately mean the creditor has to do nothing more than send you the bill and if you fail to timely dispute it you owe it. IIRC NY is one of those states. Thankfully, I live in a state where the legal precedent requires them to do much more than just send you a bill and you fail to dispute it if they wish to proceed under an account stated theory.