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Regular Contributor
McArthur
Posts: 249
Registered: ‎12-24-2012
0

Re: Authorized User and Joint Accounts


drkaje wrote:

@ Rev,

 

There's also no way to apportion the CL with USAA.

 

Loosely worded from cardholder agreement page 13: "An authorized user shall have the same authority as a cardholder to (1) make purchases, balance transfers, or cash advances; (2) access account information; and (3) authorize others to use the account" blah blah blah "To terminate an authorized user, a cardholder must first notify us and then request a new account number. if a cardholder chooses to keep the same account number, you understand that we cannot prevent the person from continuing the use the account and you agree that any further use by the person will remain authorized"

 

On page 12 it says they will try collecting from the AU should account holder fail to pay. Among blah blah it says "This means we may, at our sole option, collect the entire account balance from any one of you, or we may collect a portion from each of you"


With USAA, an AU cannot add subsequent AUs to the account.  Thinking the claim that they could strange, I called USAA and got through to a senior representative who explained that the language in the contract only mean that an AU can authorize any other person to use the account with the original AU's card, but not in the sense that they can request USAA to issue a new card to the person.  It's sort of like giving your card to your DW and telling her to go get cash from the ATM.

 

Also, in my AmEx contract it specifically states that should the principal cardmember not pay, the AU is liable for their own use of the card.  USAA is the same.  

Moderator
Revelate
Posts: 9,732
Registered: ‎12-30-2011
0

Re: Authorized User and Joint Accounts

[ Edited ]

@McArthur,

 

Where are you seeing that in the Amex card agreement?

 

I went looking at the Zync again and in addition to the original section I quoted, it's reiterated further down:

 

You are responsible for all use of your Account by
Additional Cardmembers and anyone they allow to
use your Account. You must pay for all charges they
make.

 

I'm just not seeing anywhere where it says the ACM shall be liable for the charges they make or are liable for yours if you default.  Admittedly I'm hungry and tired at this point but I'm not sure how they could legally, this isn't a joint account.  Traditional AU's I'm fairly confident that's the case, Amex may be (or used to be?) different in that ACM's had their own account numbers and therefore seperate billing history from what I understand from other posters.

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Regular Contributor
McArthur
Posts: 249
Registered: ‎12-24-2012
0

Re: Authorized User and Joint Accounts


Revelate wrote:

@McArthur,

 

Where are you seeing that in the Amex card agreement?

 

I went looking at the Zync again and in addition to the original section I quoted, it's reiterated further down:

 

You are responsible for all use of your Account by
Additional Cardmembers and anyone they allow to
use your Account. You must pay for all charges they
make.

 

I'm just not seeing anywhere where it says the ACM shall be liable for the charges they make or are liable for yours if you default.  Admittedly I'm hungry and tired at this point but I'm not sure how they could legally, this isn't a joint account.  Traditional AU's I'm fairly confident that's the case, Amex may be (or used to be?) different in that ACM's had their own account numbers and therefore seperate billing history from what I understand from other posters.


You are reading the short agreement from the website.

 

Mine specifically states that the ACM iliable for THEIR charges if the BCM defaults, at AmEx's discretion.

 

You might also want to ask AmEx directly. I did and received the following written response:

 

"Additional Cardmembers may be responsible for payment of their own charges if the Basic Cardmember fails to pay them, and their own credit record may be affected by non-payment of the account. I have advised Additional Card applicants that you may obtain and exchange credit information about them in the same manner as that described below.
 
When an Additional Cardholder is added to an account we are required to read the following Disclosure: 
 
Consumer Additional Card Enrollments: By adding an Additional Cardmember to your account, you become liable for your Additional Cardmember's charges; however, if you, the Basic Cardmember fails to pay, we will seek payment from your Additional Cardmember for their own charges."

 

 

 

 

 

Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Authorized User and Joint Accounts


McArthur wrote:

Revelate wrote:

@McArthur,

 

Where are you seeing that in the Amex card agreement?

 

I went looking at the Zync again and in addition to the original section I quoted, it's reiterated further down:

 

You are responsible for all use of your Account by
Additional Cardmembers and anyone they allow to
use your Account. You must pay for all charges they
make.

 

I'm just not seeing anywhere where it says the ACM shall be liable for the charges they make or are liable for yours if you default.  Admittedly I'm hungry and tired at this point but I'm not sure how they could legally, this isn't a joint account.  Traditional AU's I'm fairly confident that's the case, Amex may be (or used to be?) different in that ACM's had their own account numbers and therefore seperate billing history from what I understand from other posters.


You are reading the short agreement from the website.

 

Mine specifically states that the ACM iliable for THEIR charges if the BCM defaults, at AmEx's discretion.

 

You might also want to ask AmEx directly. I did and received the following written response:

 

"Additional Cardmembers may be responsible for payment of their own charges if the Basic Cardmember fails to pay them, and their own credit record may be affected by non-payment of the account. I have advised Additional Card applicants that you may obtain and exchange credit information about them in the same manner as that described below.
 
When an Additional Cardholder is added to an account we are required to read the following Disclosure: 
 
Consumer Additional Card Enrollments: By adding an Additional Cardmember to your account, you become liable for your Additional Cardmember's charges; however, if you, the Basic Cardmember fails to pay, we will seek payment from your Additional Cardmember for their own charges."

 

 

 

 

 


I thought that this is just wording.  Anyone can "seek" payment for anyone, the question is can they sue and enforce a judgement against an AE.   But.....

 

 

And even though authorized users are not technically responsible for debt repayment, "lawsuits have been maintained against AUs for expenditures run up not by them but by the card owners who defaulted," Rose says. "Once a lawsuit is filed, if the AU fails to answer a summons or effectively defend against the charges, they find themselves stuck with a judgment for charges they never incurred. Since anywhere from 60 percent to 80 percent of credit card lawsuits end in default judgment, one assumes this is not an infrequent occurrence."

 
Which I take to mean that there is no legal obligation in theory but that might not protect you in the real world.
New Contributor
idonthaveaname
Posts: 121
Registered: ‎01-16-2013
0

Re: Authorized User and Joint Accounts

Authorized users:

 

How come some show up on one bureau but not the other?

 

Also to be an authorized user all I had to do is give my name and address how did they know to put it on the right cc file?

Regular Contributor
McArthur
Posts: 249
Registered: ‎12-24-2012
0

Re: Authorized User and Joint Accounts


idonthaveaname wrote:

Authorized users:

 

How come some show up on one bureau but not the other?

 

Also to be an authorized user all I had to do is give my name and address how did they know to put it on the right cc file?


 

I wish I knew why some bureaus pick up the AU reporting and others don't.

 

With a name and address they can find your report and post to it.  They do not technically have to have your SSN or even DOB.


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