[Lucy]

Is a bank account considered an open account?

[centex]

Not enough info to answer...need some context here.

[Pale Rider]

Does it have an overdraft with a line of credit?

[Lucy]

I'm asking for someone else. They have 2 checking accounts, different banks. One account is overdraft with a credit line and the other one isn't. They asked me if a bank account was considered an open account or was it considered like a contract, heck I don't know.

[centex]

The one without is very clearly contract- you bounce, you pay. Overdraft, though, is more along the lines of revolving credit absent specific fixed terms in the overdraft agreement (which will vary based upon the bank). Their best bet is to simply learn to balance a checkbook and it becomes a moot point...

[Lucy]

The ability to balance a checkbook never came into play, to the best of my knowledge I believe they handle that pretty well. They just wanted to know if a checking account is considered a contract.

[Pale Rider]

"Open end credit" accounts are defined in TILA Regulation Z. IMO, it could only fall under that in an overdraft situation, if the terms met the conditions in TILA. So, a normal bank account would not be an open account.

UCC chapter 4 deals with deposits. I saw a term "deposit contract", but was unable to find a definition. I would look at Florida's version of UCC. Also, look at the paperwork from the account opening to see if the terms and conditions have all the elements needed for a contract.

I also came upon this definition, but not sure if it applies to all accounts in all states:

Signature Card - A contractual form, executed by an account holder, establishing account ownership and setting forth some of the basic terms of the account and provisions of the deposit contract.

Banking Definitions

[Pale Rider]

The TOS was probably similar to this one

https://webpro.netzee.com/fnbpasco/P...es/DAAD_01.PDF

[centex]

Originally Posted by Lucy

The ability to balance a checkbook never came into play, to the best of my knowledge I believe they handle that pretty well. They just wanted to know if a checking account is considered a contract.

I'm always wary of people that are looking for angles when there are no problems present...