When a person open a credit card account, the creditor is required by law to set out the terms of the account in writing, including the annual percentage rate and any fees such as an annual fee, over-the-limit fees and late charges that will be charged for the privilege of having the account. This is usually part of a written agreement, or contract, that also has other terms and conditions related to the account such as minimum payment requirements and actions that would violate the agreement.

The Cardholder Agreement is a legally binding document between the consumer and the credit issuer.  It outlines in detail all of the terms of the credit agreement.  When a person sign and accept a credit card agreement, s/he is also accepting the terms and conditions that come along with it.  As a result, the consumer is responsible for everything that is written in the agreement.