Bank Charge Cards: New Cash or New Credit

Authors

Roland E. BrandelFollow
Carl A. Leonard

Abstract

It is the premise of this Article that the bank charge card systems constitute a new, highly useful, and efficient payment and credit mechanism; that any decision-making body that promulgates a rule on the issue of the assertability of consumer defenses must carefully evaluate the true functions of bank charge cards, particularly their role as part of a sophisticated payment mechanism, and weigh the relative interests of the consuming public, merchants, and members of the banking industry to derive the best solution for society; that courts are ill-equipped to perform this function; and, that, given the national and international usage of bank charge cards, a uniform rule is imperative. The Article will first analyze each of these premises and then proceed to suggest a rule that seems effectively to balance the various interests involved.

Recommended Citation

Roland E. Brandel & Carl A. Leonard, Bank Charge Cards: New Cash or New Credit, 69 Mich. L. Rev. 1033 (1971).
Available at: https://repository.law.umich.edu/mlr/vol69/iss6/4