What Is An Open Account?

by John Watts on October 27, 2011

If you have been sued in Alabama by a debt buyer, you will often see a “cause of action” (or legal basis to sue) listed as “Open Account” — this video explains what that is.

It is a debt where you did not agree to a certain time limit to pay. A credit card is a perfect example.

A car loan, on the other hand, is not an open account but, instead, you borrowed a set amount and are making set payments every month.

John Watts
Watts Law Group, PC
Birmingham, Alabama

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