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Under Georgia law, a party may assent to terms of a contract, including an arbitration clause in a credit card agreement, by conduct such as making monthly payments on the account, a federal court in Georgia held.
In Athon v. Direct Merchants Bank, No. 5:06-CV-1 (CAR), 2007 WL 1100477 (M.D. Ga. April 11, 2007), Athon brought claims against Direct Merchants Bank (DMB), alleging violations of the Fair Debt Collection Practices Act.
DMB brought a motion to compel arbitration, pointing to an arbitration clause in the cardholder agreement. Athon argued that he did not sign any agreement relating to the account at issue and therefore should not be bound by an arbitration clause.
However, the Court disagreed with Athon and granted the motion to compel arbitration. Under Georgia state law, an arbitration clause need only be in writing – and not necessarily signed – to be enforceable.
Additionally, Athon demonstrated his assent to the cardholder agreement containing the arbitration clause by using the card and making monthly payments on the card for three and a half years, and by failing to complain that the account was obtained fraudulently or unauthorized.
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