HomeGuru - Need help with authorized user info

[lsut1ger]

What is the name of your state? LA

I read a post by you regarding authorized users on a credit card. From your post you indicated that an authorized user COULD be held liable for an account.

I need to know several things:

1. Can the credit card company SUCCESSFULLY demand payment from the "AU"?

2. Is the "AU" liable for ALL charges on the acct, or only the charges made by "AU"?

3. If liable for ALL of the debt, what is the basis for the "AU's" liability? To my knowledge, the consent of the individual is NOT necessary in order for them to become an "AU" on a credit card account. At what point does the "AU" become legally liable for the debt?

Thanks for any help you can provide.

 

[Ladynred]

1 - Yes, IF they can prove the AU is liable

2 - AU's are generally NOT liable at all, but if they can prove the AU did make the charges, they CAN be held liable for only THAT portion of the debt.

3 - See answer to #2

 

[lsut1ger]

Thanks!

Thanks for the info!

Can you point me towards any case law that would get me started with research on this - authorized user/liable for a portion/etc.?

I'm in the middle of a project and just coming up blank. Obviously details are different, etc. but if I could just get a starting point.

 

[bigun]

Here's a recent one that cost MBNA $90K. The damages revolve around FCRA claims but the whole thing started when they tried to collect against someone and had no documenation making her liable.

http://caselaw.lp.findlaw.com/data2/circs/4th/031235p.pdf

What sort of project are you tackling? With some specifics, we may be able to help.

 

[lsut1ger]

Pretty basic...

Consumer filed bankruptcy, debt was discharged. Now credit card co. is going after consumer's fiance (authorized user) for the entire debt.

Not sure what the contract terms on the card were, etc. but assuming the contract stated that anyone using the card becomes valid for entire debt, does AU using card and signing pymt slip saying "I agree to contract terms" bind the AU to the entire debt? Obviously AU never SAW the contract.

Any input is MUCH appreciated..

 

[bigun]

Sounds exactly like the Johnson case. If it's on his credit report, you've recourse.
One of the top FCRA lawyers in the country is located in Shreveport.

David A. Szwak

Organization:
Bodenheimer, Jones, Szwak & Winchell, LLP

Address:
401 Market Street, Ste. 240

City:
Shreveport

State:
LA

ZIP:
71101

Email:
bjks1507@aol.com

Phone:
(318) 424-1400

Fax:
318-424-1476

Date Joined:
8/25/1997