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Frequent Contributor
princessofpink
Posts: 328
Registered: ‎05-18-2007

Re: AU's aren't responsible for the accounts... or are they?

They do sign when they make a purchase however, agreeing to those terms.  The cardholder agreement is sent with the new card, so I see it as agreeing to be liable for your charges if the primary cardholder doesn't pay.  If you never make any charges with your card, then you would be in the clear.
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

Re: AU's aren't responsible for the accounts... or are they?



princessofpink wrote:
They do sign when they make a purchase however, agreeing to those terms.  The cardholder agreement is sent with the new card, so I see it as agreeing to be liable for your charges if the primary cardholder doesn't pay.  If you never make any charges with your card, then you would be in the clear.


This is a free country and this is a public forum, so you are entitled to your own opinions. But I strongly disagree with you!
Frequent Contributor
princessofpink
Posts: 328
Registered: ‎05-18-2007

Re: AU's aren't responsible for the accounts... or are they?

[ Edited ]
Okay.:smileyhappy:


fused111 wrote:

 
This is a free country and this is a public forum, so you are entitled to your own opinions. But I strongly disagree with you!





Message Edited by princessofpink on 07-28-2007 08:48 PM
Established Contributor
Revike
Posts: 720
Registered: ‎05-04-2007

Re: AU's aren't responsible for the accounts... or are they?

Different Amex credit cards have different language on their applications and cardmember agreements, regarding the responsibility of an authorized user. Apparently Amex is unable to define the responsibility of an AU with any consistency. In all of the educational material that I've seen, which Amex links to or is associated with, authorized users are consistently described as not responsible.

On those agreements where Amex tries to attach responsibility to authorized users, Amex is most likely attempting to create a legal loophole, so they can pursue an AU if they are unable to successfully collect from the primary cardholder. I rather doubt AU responsibility is enforceable, since AU cards can be requested, received, and used completely without the AU's knowledge. About the only situation I can think of where an AU might be held responsible would be in the case of fraud, such as use of their credit card after the death of the primary cardholder.
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007

Re: AU's aren't responsible for the accounts... or are they?

Searching the FDIC website, I found a number of references to AUs. Some of the language in FDIC regs is somewhat vague on the issue of AUs, but some of the comment letters that mention AUs from OCs makes it very clear that the OCs know the AU is not responsible for the debt.
 
More opinion that AUs aren't responsible.
 
Established Contributor
myhearts07
Posts: 858
Registered: ‎06-26-2007

Re: AU's aren't responsible for the accounts... or are they?

Question?  DH is an AU on a Citibank card that was discharged in my BK7.  Is he responsible for the debt as an AU?  If not, how would he get this off his credit report?
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007

Re: AU's aren't responsible for the accounts... or are they?

Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007

Re: AU's aren't responsible for the accounts... or are they?



myhearts07 wrote:
Question?  DH is an AU on a Citibank card that was discharged in my BK7.  Is he responsible for the debt as an AU?  If not, how would he get this off his credit report?


DH, and anyone else who's an AU, can dispute an adverse AU TL and have it removed.
 
 
Established Contributor
myhearts07
Posts: 858
Registered: ‎06-26-2007

Re: AU's aren't responsible for the accounts... or are they?

Would he dispute it as not mine?  Or what?
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007

Re: AU's aren't responsible for the accounts... or are they?



myhearts07 wrote:
Would he dispute it as not mine?  Or what?


If he disputes online, I believe at least one of the CRAs has a checkbox if one is merely an AU.
 
If he disputes in writing or via fax, have him say "I was only an authorized user on this account."

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