Posted by Jim Locker on July 11, 2001 at 15:27:30:
>>>>>Basically, it comes down to this… can a letter be sent to someone that basically says… unless some action is taken on your part to state that you disagree with the terms, you are then bound by them?
To do that “out of the blue” you have to be a government, and you have to pass a law first.
But to answer your question in the general case, “it depends.”
For instance, I cannot send you a letter telling you that you have joined my club and I am charging you a membership fee UNLESS you previously asked to join my club.
OTOH, let us say that I sell you a house and hold the note (disclaimer: in some states this is a bad example since there are a lot of laws governing these thing. However, I go with the RE example to make this an on topic post…) Now, the note I hold might say that I can jack the interest at any time to any level I want to, on 30 days notice, and if you don’t like it you have the option to buy me out.
So, six months into the deal, I send you a letter saying that I am raising the interest by 50%. You are stuck. But only because you already have a contract with me, where you agreed to the terms.
This is a common trick with credit card companies. They jack the interest at the drop of a hat and often with NO notice. But if you read all the fine print in the terms and conditions, you agreed to it.