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authorized user judgements

OnTheRebound
Established Contributor

Re: authorized user judgements

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Although we seldom hear about specific cases, AmEx has been doing this for a long time.  In their cardholder agreement they specify that if the account goes into default, both the primary cardholder and the AU are liable for all charges made with the AU card.  AmEx has sued people (and won) and they have blacklisted AUs over this. 

 

There is a certain logic behind this, I agree, but on the other hand it seems really underhanded.  Still, since it is part of the cardholder agreement, it holds up.

 

Without going through all my credit card agreements, I do remember that there is at least one non-AmEx credit card where the issuer holds AUs liable on their use of the card if things go south.  I am positive there is at least one, but I am not certain which credit card company it is.  I would like to say it is either USAA, Nationwide and / or Chase, but I am not 100% positive. 

 


I'm an AU on my wifes Amex Green Card. I know for certain Amex states in the credit card agreement that AU's are responsible for at least their personal charges if things go sour. Maybe that is the purpose of AU's having a different account # than the primary?

 

My wife is an AU on my Citi MC. Credit card ageement states (I'm pretty sure) that AU's are responsible for charges should things go bad. Both cards have same account #'s.

Amex BCE $11.1 / Citi Diamond Preferred WMC $12K / Citi Double Cash WMC $3.8K / Comenity Total Rewards Visa $2.5K / Citi Home Depot $5K / AU- Amex BCP $12K / Chase Freedom Visa $11014.00 / PenFed Platinum Rewards Visa Signature $6K / GE Lowes $10K
myFico Scores on 10/03/2014
Eq 798 / Exp 811 / Trans 814
CCT Fico 08 on 1/3/16 - Trans 786 / Exp 793 / Eq 797
Message 11 of 14
ddiamond
Valued Member

Re: authorized user judgements

I have disputed the chase bank charge off because it specifically stated that I was an authorized user. I have looked more into the judgement and see that it lists me as a joint credit card owner. Although it list me as a joint credit card holder I was never served with any papers and neither was my brother. This claim was filed in Georgia, cherokee county in 2006. How do I go about taking care of this to get it off of my report? Every time I am denied credit it's because of this judgement.


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Message 12 of 14
O6
Senior Contributor

Re: authorized user judgements


@ddiamond wrote:

I have disputed the chase bank charge off because it specifically stated that I was an authorized user. I have looked more into the judgement and see that it lists me as a joint credit card owner. Although it list me as a joint credit card holder I was never served with any papers and neither was my brother. This claim was filed in Georgia, cherokee county in 2006. How do I go about taking care of this to get it off of my report? Every time I am denied credit it's because of this judgement.


Obtain a copy of all the documents directly from the court clerk to include the proof of service documentation. 

 

Once you are sure that you were not properly served, you want to file a Motion to Vacate with the court stating that you were not served.  The court will likely order a hearing and after that, if they agree with your claim, will vacate the judgment.  It may also be possible -- even if you were properly served according to Georgia civil procedure law -- to have the judgment vacated based on fraud upon the court.  The creditor has to submit a "verified" complaint which means that it is made under penalty of perjury.  If they knew or should have known you were not a joint applicant and stated that you were, this may be considered fraud.  This is a bit tricky so you may want to seek local legal counsel for assistance in this aspect.

IAALBNYL
Message 13 of 14
ddiamond
Valued Member

Re: authorized user judgements

06 Thanks for the great information!


Starting Score: 546
Current Score: 666
Goal Score: 750


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Message 14 of 14
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