Unautorized use by authorized user

[Anonymous]

My husband's mother is an authorized user on his Discover card. When the card reached the credit limit because of her over use, he closed the account. Discover reopened at her request, and even increased the limit. Now, after a few late payments, they are calling him for payment, but he's refusing because he didn't authorize the account being reopened. I would hate to consider it fraud since it's his mom, but what can we do, should we get a lawyer?

creece4485

[Creditaddict]

was she joint on the account or just auth??

I think really the only way to get the new charges taken off would be to press charges against her, but the before balance when she re-opened would still need to be paid and these late payments are going to tank his credit real quick if he doesn't start paying.

[Tons_of_Debt]

Did he payoff when he closed? If not, wouldn't there still have been payments due? He definitely needs to start making payments ASAP.

[score_building]

1. Immediately pay balance to less than the CL and even better PIF if possible.  2. Remove mom from card.  3. Work out the rest with mom directly w/o the interference of outside entities.  By assigning her as an authorized user you gave her the right to use the card. GL!

Message Edited by score_building on 09-25-2008 12:33 PM

[Anonymous]

She was just an authorized user not a joint user. So does the CC company not have any responsibility?

[score_building]

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creece4485 wrote:

She was just an authorized user not a joint user. So does the CC company not have any responsibility?

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unless he requested a dollar amount limit on usage for the AU the account balance will likely be assigned as the full responsibility and obligation of the primary account holder.  unless the primary wishes to press charges against mom- it's probably just as well that he settle this with her directly after immediate payment.  moving to act to resolve the balance on the account promptly is probably best choice.   

Message Edited by score_building on 09-30-2008 07:12 PM

[Anonymous]

He should probably discuss this with a lawyer. I don't think that authorized users have the authority to order cards or make changes to an account. Maybe Discover is at fault. Even then though, they will probably consider you mother in law's actions fraud and go after her legally (because what she did was fraud). It might have been Discover's error in reopening the card, but they still probably have the right to get their money (probably by suing your husband's mother). He should at the very least pay whatever minimum payment Discover wants, until he straightens this out.

Message Edited by siangirl34 on 09-25-2008 03:04 PM

[haulingthescoreup]

I think Discover should "man up" on this. I'm an AU on DH's Discover card, and he had to tell them that I was authorized to even talk to them on the phone about the account. (I do the bill-paying.) I know that they told me that he would have to call them separately if he wanted to convert me to joint.

And in fact, now that I think about it, he had to tell them that it was OK to change the statement date. They wouldn't take it from me; had to be him.

Hope that they can work something out!

And sadly, this story is something to keep in mind when considering making someone an AU, or becoming one yourself.