Open-End Credit Law and Legal Definition
According to 15 USCS Appx 12 CFR § 226.2 (20), [Title 15. Commerce and Trade; Chapter 41. Consumer Credit Protection; Truth in Lending Regulations. (Regulation Z); Subpart A. General] the term open-end credit means “consumer credit extended by a creditor under a plan in which:
(i) The creditor reasonably contemplates repeated transactions;
(ii) The creditor may impose a finance charge from time to time on an outstanding unpaid balance; and
(iii) The amount of credit that may be extended to the consumer during the term of the plan (up to any limit set by the creditor) is generally made available to the extent that any outstanding balance is repaid.”
