Credit Cards - Revision history

Drew Jackson at 12:46, 12 October 2018

2018-10-12T12:46:18Z

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	{{REVIEWEDPLS \| reviewer = [[Alison Ward]]\|date= August 2018}}{{Consumer and Debt Law TOC\|expanded = reports}}		{{REVIEWEDPLS \| reviewer = [[Alison Ward]]\|date= August 2018}}{{Consumer and Debt Law TOC\|expanded = reports}}

	'''Credit cards''', which allow a person to pay for things based on a promise to pay later, ~~follow~~ some basic rules of contract law and raise some special legal issues.		'''Credit cards''', which allow a person to pay for things based on a promise to pay later, follow some basic rules of contract law and raise some special legal issues.

	== Client problems==		== Client problems==

Drew Jackson at 14:33, 9 October 2018

2018-10-09T14:33:58Z

← Older revision		Revision as of 14:33, 9 October 2018
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	* Client has recently separated from a spouse and wants to know about liability for past and future bills on a joint credit card.		* Client has recently separated from a spouse and wants to know about liability for past and future bills on a joint credit card.
	* Client wants to know how much interest is being charged, and how it is charged, on their credit card.		* Client wants to know how much interest is being charged, and how it is charged, on their credit card.

	== Summary of the law==		== Summary of the law==
	[[File:Consumer_Law_and_Debt_-_Credit_Cards.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]		[[File:Consumer_Law_and_Debt_-_Credit_Cards.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]

Elena Renderos at 05:23, 20 September 2018

2018-09-20T05:23:43Z

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	== Summary of the law==		== Summary of the law==
			[[File:Consumer_Law_and_Debt_-_Credit_Cards.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]
	Liability (responsibility) for charges made on credit cards follows the basic rules of [[Contracts Overview\|contract law]]. In most instances, the agreement is made between the consumer applying for the credit card and the creditor accepting the application. The creditor issues the credit card subject to the consumer accepting the terms set out in a cardholder agreement.		Liability (responsibility) for charges made on credit cards follows the basic rules of [[Contracts Overview\|contract law]]. In most instances, the agreement is made between the consumer applying for the credit card and the creditor accepting the application. The creditor issues the credit card subject to the consumer accepting the terms set out in a cardholder agreement.

Elena Renderos at 19:26, 19 September 2018

2018-09-19T19:26:52Z

← Older revision		Revision as of 19:26, 19 September 2018
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	== Related topics and materials==		== Related topics and materials==
	See the other section on credit reports and credit cards:		See the other section on credit reports and credit cards:
	* Credit Reports and Credit ~~Ratings~~		* [[Credit Reports and Credit Ratings]]

	See related topics:		See related topics:
	* Assignments in ~~Bankruptcy~~		* [[Assignments in Bankruptcy]]
	* Consumer and Ordinary ~~Proposals~~		* [[Consumer and Ordinary Proposals]]
	* Contracts ~~Overview~~		* [[Contracts Overview]]
	* Co-signing, Guarantees and Joint Debts		* [[Co-signing, Guarantees and Joint Debts]]
	* Debtor’s Options for Getting Out of Debt		* [[Debtor’s Options for Getting Out of Debt]]
	* Interest and the Cost of Borrowing ~~Money~~		* [[Interest and the Cost of Borrowing Money]]

	See also the People’s Law School pages on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-cards credit cards].		See also the People’s Law School pages on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-cards credit cards].

Elena Renderos at 00:36, 17 September 2018

2018-09-17T00:36:43Z

← Older revision		Revision as of 00:36, 17 September 2018
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	See also the People’s Law School pages on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-cards credit cards].		See also the People’s Law School pages on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-cards credit cards].


	{{Consumer and Debt Law Navbox\|type = debt}}		{{Consumer and Debt Law Navbox\|type = debt}}

Elena Renderos at 22:32, 16 September 2018

2018-09-16T22:32:03Z

← Older revision		Revision as of 22:32, 16 September 2018
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	== Solving the problem==		== Solving the problem==
	If the consumer’s problem arises from an inability to pay the credit card bill, refer to the section on Options for Getting Out of Debt.		If the consumer’s problem arises from an inability to pay the credit card bill, refer to the section on [[Debtor’s Options for Getting Out of Debt\|Options for Getting Out of Debt]].

	If the problem involves potential liability for a lost or stolen credit card, ensure as soon as possible that the consumer has notified the creditor. Most credit card issuers, including MasterCard and Visa, have special phone numbers that you can call at no charge for reporting lost or stolen cards.		If the problem involves potential liability for a lost or stolen credit card, ensure as soon as possible that the consumer has notified the creditor. Most credit card issuers, including MasterCard and Visa, have special phone numbers that you can call at no charge for reporting lost or stolen cards.

Elena Renderos at 22:30, 16 September 2018

2018-09-16T22:30:56Z

Elena Renderos at 04:04, 7 September 2018

2018-09-07T04:04:45Z

← Older revision		Revision as of 04:04, 7 September 2018
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	* Interest and the Cost of Borrowing Money		* Interest and the Cost of Borrowing Money

	See also the People’s Law School pages on credit cards.		See also the People’s Law School pages on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-cards credit cards].

	{{Consumer and Debt Law Navbox\|type = debt}}		{{Consumer and Debt Law Navbox\|type = debt}}

Elena Renderos at 04:02, 7 September 2018

2018-09-07T04:02:06Z

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 {{REVIEWEDPLS | reviewer = [[Alison Ward]]|date= August 2018}}{{Consumer and Debt Law TOC|expanded = reports}}
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+'''Credit cards''', which allow a person to pay for things based on a promise to pay later,  follow some basic rules of contract law and raise some special legal issues.
-| type       = content
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+== Client problems==
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+* Client has lost a credit card and wants to know about liability if the card is used fraudulently.
-| smallimage =
+* Client has bought defective merchandise with a credit card and wants to know if they can refuse to pay the credit card bill.
-| textstyle  =
+* Client has recently separated from a spouse and wants to know about liability for past and future bills on a joint credit card.
-| text       = This page is in the process of being updated. Please check back shortly.<br>
+* Client wants to know how much interest is being charged, and how it is charged, on their credit card.
-| smalltext  =
-}}
+== Summary of the law==
 {{Consumer and Debt Law Navbox|type = debt}}

Drew Jackson at 04:20, 29 August 2018

2018-08-29T04:20:43Z

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	}}		}}

	{{Consumer and Debt Law Navbox\|type = ~~consumer~~}}		{{Consumer and Debt Law Navbox\|type = debt}}

	{{Creative Commons for PLS		{{Creative Commons for PLS

← Older revision		Revision as of 22:30, 16 September 2018
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	== Summary of the law==		== Summary of the law==
	Liability (responsibility) for charges made on credit cards follows the basic rules of contract law. In most instances, the agreement is made between the consumer applying for the credit card and the creditor accepting the application. The creditor issues the credit card subject to the consumer accepting the terms set out in a cardholder agreement.		Liability (responsibility) for charges made on credit cards follows the basic rules of [[Contracts Overview\|contract law]]. In most instances, the agreement is made between the consumer applying for the credit card and the creditor accepting the application. The creditor issues the credit card subject to the consumer accepting the terms set out in a cardholder agreement.

	=== Types of credit card agreements===		=== Types of credit card agreements===
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	==== Disclosing the cost of borrowing on credit cards====		==== Disclosing the cost of borrowing on credit cards====
	Under the ''Business Practices and Consumer Protection Act'', credit cards are a form of “open credit” (the borrower is not borrowing a fixed or agreed amount of money). The Act requires lenders who extend open credit to make a statement available to the consumer in advance that explains the cost of borrowing on the credit card (see the section on Interest and the Cost of Borrowing Money). Once credit is extended, the lender must issue periodic statements showing details such as the total amount credited and the outstanding balance. In most cases, consumers get this information as part of their usual monthly statement.		Under the ''Business Practices and Consumer Protection Act'', credit cards are a form of “open credit” (the borrower is not borrowing a fixed or agreed amount of money). The Act requires lenders who extend open credit to make a statement available to the consumer in advance that explains the cost of borrowing on the credit card (see the section on [[Interest and the Cost of Borrowing Money]]). Once credit is extended, the lender must issue periodic statements showing details such as the total amount credited and the outstanding balance. In most cases, consumers get this information as part of their usual monthly statement.

	==== Liability for lost or stolen credit cards====		==== Liability for lost or stolen credit cards====
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	==== Liability for jointly held credit cards====		==== Liability for jointly held credit cards====
	An important concern for consumers is their liability or responsibility when cards are issued to co-applicants or when cardholders agree to add other users to their existing credit card (see the section on Co-signing, Guarantees and Joint Debts). Liability for jointly held credit cards is not dealt with in the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''] — it is a matter of contract law, based on the cardholder agreement.		An important concern for consumers is their liability or responsibility when cards are issued to co-applicants or when cardholders agree to add other users to their existing credit card (see the section on [[Co-signing, Guarantees and Joint Debts]]). Liability for jointly held credit cards is not dealt with in the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''] — it is a matter of contract law, based on the cardholder agreement.

	In general, cardholder agreements stipulate that each authorized user of a card is jointly and severally liable for the debts incurred on the card. This means the creditor can claim the full balance on the account from any of the holders, regardless of how little or how much each individual actually charged on the card. That liability continues at least until one of the parties to the agreement terminates the agreement. Responsibility for the debts of another cardholder may well continue until that cardholder’s card is physically recovered and returned to the financial institution.		In general, cardholder agreements stipulate that each authorized user of a card is jointly and severally liable for the debts incurred on the card. This means the creditor can claim the full balance on the account from any of the holders, regardless of how little or how much each individual actually charged on the card. That liability continues at least until one of the parties to the agreement terminates the agreement. Responsibility for the debts of another cardholder may well continue until that cardholder’s card is physically recovered and returned to the financial institution.
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	The distinction between merchant credit cards and financial institution credit cards becomes important when the consumer has a problem with products or services purchased with the credit card. Usually, the consumer’s reaction is to refuse to pay the credit card bill, or at least the amount on the bill relating to the problem product or service.		The distinction between merchant credit cards and financial institution credit cards becomes important when the consumer has a problem with products or services purchased with the credit card. Usually, the consumer’s reaction is to refuse to pay the credit card bill, or at least the amount on the bill relating to the problem product or service.

	Disputes between a consumer and a merchant over a purchase on a merchant’s own credit card are usually resolved according to general principles of contract law. The parties can negotiate or they can go to court. If the matter goes to court, the court’s decision on the merits of the case governs the liability on the credit card, or at least the credit card purchase.		Disputes between a consumer and a merchant over a purchase on a merchant’s own credit card are usually resolved according to general principles of [[Contracts Overview\|contract law]]. The parties can negotiate or they can go to court. If the matter goes to court, the court’s decision on the merits of the case governs the liability on the credit card, or at least the credit card purchase.

	Disputes between a consumer and a merchant over a purchase on a financial institution’s card are more complicated. Usually, the consumer has little right to refuse to pay the bill from the financial institution. Cardholder agreements generally contain terms that mean that the consumer must pay for charges on the card regardless of product or service quality, and that the bank is not in any way responsible for consumer-merchant disputes. However, some cardholder agreements do contain special terms that are essentially warranties or insurance for the purchases made using the card.		Disputes between a consumer and a merchant over a purchase on a financial institution’s card are more complicated. Usually, the consumer has little right to refuse to pay the bill from the financial institution. Cardholder agreements generally contain terms that mean that the consumer must pay for charges on the card regardless of product or service quality, and that the bank is not in any way responsible for consumer-merchant disputes. However, some cardholder agreements do contain special terms that are essentially warranties or insurance for the purchases made using the card.