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Re: credit card contract theory and who benefits...

Posted 12/31/2011 at 7:20:51 AM

You might find this interesting. Contracts are agreements between two parties, where both sides are bargaining for a common solution, this is called a bilateral contract. Where only one side dictates the terms, it is termed a unilateral contract. Now as it is very expensive to challenge a big company, they usually get away with a lot. Surprisingly many times the terms of their contract border on being illegal, certain clauses, termed adhesionary clauses, so called as you have no choice but to agree with them, are often illegal or unenforceable, however they get away with this because it is too difficult and expensive to challenge them.

The green dot card is basically a credit card where the company takes almost no risk as you pony up the money and, pay them a monthly or service fee, and they give the money back to you as you use the card. Nonetheless, if you go to the link, you will see they want no responsibility and no risk and all the terms favor them. The force you to agree to an arbitration clause that requires you to pay the costs of arbitration! What a bunch of bastards, no sense of fair play. A big law firm who specialize in shaking down these guys will eventually challenge this type of clause and after it works its way through the lower courts where the big companies win, it eventually get to an appeal court where the law says, “this just ain’t fair, you guys got the public by the balls and now you are using a hammer on them!”

Anyway, that is why I advise you to try to settle arguments out of court and avoid lawyers and courts at all costs unless necessary. When folks ask a question, my first response is not to suggest they contact a lawyer, as this is expensive, as a result I try to tell them how to handle it themselves. In this case probably best to just move on but certainly register a complaint if they do not rescind the closing of account without a good reason. There are state consumers boards that collect these complaints and sometimes they are able to get the credit card company to reverse or eliminate the bad feedback on you.

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