I have an AMEX corporate card (and this may be relevant). I recently received a notice that AMEX will no longer mail bills, but requires you to get them online. Now I realize that AMEX is a private company and can refuse to issue you a card unless you agree to pick up your bills online. But let us suppose you already have a card and never use a computer (I have an 87 year old colleague who has never used a computer in his life and is not about to start). Can they legally just stop sending you bills and get you in trouble if you don’t pay your them?
It occured to me that perhaps a phone call to them would result in an exception being made and I don’t think my colleague has a card in any case, so the question is largely theoretical.
I own a small business. In 2006, due to “the economy” I decided to stop allowing my customers to bill. Before making this change, I spoke with my attorney to make sure I was not running afoul of the law. Last year I decided I was receiving too many NSF checks. I decided to stop accepting checks, but I discussed this first with my attorney.
This is all anecdotal, but the point is that if I ran my business plans past my attorney, I am pretty certain AMEX did similarly.
According to this summary of the The Credit Card Accountability Responsibility and Disclosure Act, credit card companies are required to mail statements at least 21 days before the payment is due. This is just a summary, and not the actual text of the legislation, but since there’s been no credible cite to the contrary I will venture an assertion that credit card companies would be required to mail statements should the customer request it.
ETA: Upon review, the kicker might be that the card is a corporate card, now that I think of it I’m sure the big banks could have gotten this exception slipped in without much brouhaha. I know that the rules for commercial telco accounts are vastly different than consumer accounts, it stands to reason the same exists for credit cards…
So you no longer allow customers to put their purchases from you on an account and pay you next month or whenever.
How could you possibly think that this would be illegal and need an attorney’s advice? It may be a business decision to balance the pros and cons of offering credit if your competitors do so but did you really think that there may be a law compelling you to offer credit?
Try going to Wal-Mart or almost any other business and say “put it on my tab”.
Wal-Mart and most other department stores (K-Mart, etc) do allow customers to open accounts, put their purchases on them, and be billed monthly.
And I would imagine he consulted with his attorney because he had customers that previously had credit accounts with them, and wanted to know if there were any rules and regulations on changing these existing credit accounts. For example, what type of disclosure do you have to send out? What are the timeframes for disclosure notices, changes to account status, etc? If a customer still carries a balance when the credit program ends, what are your legal options (can you close the acct, send it to a collection agency, etc?). I don’t think there’s anything odd at all about running this through a lawyer.
Yes, the entire balance is payable when the bill is rendered. But they charge interest rather than cancel the card if you don’t, so the difference is not really serious.
Does this apply to everyone or just new accounts? I wonder if local laws vary.
I ask because I know in Illinois, Maryland and Florida, where I’ve done payroll, it is legal to require that all new hires have direct deposit. (Yes I realize this is apples and oranges but it’s just a thought)
The interesting thing is how this is implimented.
You cannot require direct deposit of your CURRENT employees. If they refuse you still have to pay them in check or cash, but you can make the direct deposit requirement and then require all new hires to submit to it. This is because it now becomes a condition of employment and continued employment.
All my credit cards are really pushing paperless. I just paid BoA and I had to jump through FIVE (yes I counted them) hoops to get around NOT signing up for paperless statements.
I work at a cellular company, and I know we’re required to be able to send bills in braille or audio due to ADA requirements. Does not having an internet connection count as a disability?
Well, I don’t wanna go into the gory details; but the nature of the business, the fact that my and similar business had allowed billing before, and the fact that once I stopped billing all of my competitors chose to do the same within a month (as I knew they would).
Add to that the knowledge that a few customers would suffer considerably as a result of my change in business practices, and indeed mentioned lawsuits when they heard my of my plans.
Additionally, my attorney is a friend. I bought him a few drinks in exchange for his consideration of my situation. If I had to pay hourly, I might have skipped the consult.
If it’s not a “credit” card but the only penalty for late payment (usually) is that they charge you interest on the balance like a credit card, and they do not cancel your ability to use their card - what’s the difference?
The only difference is that they do not specify a minimum payment. The entire balance is payable. Of course, if you don’t, they don’t send someone around to kneecap you; they just charge interest. So they quac.
