Credit Card Novation - Fact or Fiction

"The cart before the horse is neither beautiful nor useful"

- Henry David Thoreau

Novation -

The substitution of a new contract for an old one; or the substitution of one party in a contract with another party. The replacement of existing debt or obligation with a new one.

Every credit card company uses the process of Novation to change card holder agreements. Any time that you get a notice of an update in the terms and conditions, and then use the card after you received it, you have agreed to the terms of the new agreement. Your act of using the credit card serves as your acceptance to the new agreement.

You can use the same process to enter into a new agreement with your card company, under your terms and conditions, which it can accept with an act, such as cashing a check. When the credit card company accepts and cashes your check, they have agreed to the terms and conditions of your Novation contract.

Your Novation contract to the creditor must:

A. Your contract is supported with adequate and sufficient consideration in the form of a check made to your credit card company for an amount between $25.00 and $100.00;

B. You detail with clear language the consequences of the card company accepting your offer.

C. You declare the legal basis for claiming zero liability for the account or for any debt alleged through a prior agreement once your offer is accepted; and,

D. You state the adverse consequences to the card company of any collection activity that does not contain sworn verified proof of your obligation as a debtor.

Nice theory, but will it actually work?

Just on face value, there are a couple of things that must occur. First and foremost would be if the original creditor will even "act" by cashing your check. Secondly, is there anything in your original contract with your creditor that states that you cannot change the terms of the contract?