Help with Unique Situation...Joint Holders Beware!!!!!

[Anonymous]

I recently encountered a very unique situation that I don't know what to do.

About 12 years ago, I became an Authorized User with my ex for her Discover Card so we can both maximize the Discover Reward.   Then I became a Joint Holder a couple of years after that.  Around 2006 during our split, I wrote to Discover Card requesting that my name be removed from the account - after making sure that the account carried a zero balance - since my ex didn't want to close it.  The wrote back to me and said that my name was removed from the card since there was a zero balance.  After receiving the letter from Discover, I called to verify that my name was no longer on the account, and I also verified with my ex by personally checking on the later monthly statements to make sure that my name wasn't on it.  Everything checked out.

Fast forward to around 2011 when I suddenly received a phone call from a collection agency for Discover Card claiming that I owed Discover xxxx, and that I hadn't paid the bills for 2 years.  I was surprised and said there had to be an error.   We had a nice conversation, and I never heard anything back from the agent.  Early 2012 I received another call, and this time it's from an actual Discover Card agent.  She said I owed Discover xxxx.   I said I don't know anything about Discover card and got transferred to their Fraud Department.   The folks at Discover Fraud Department said I opened a Discover Account in 1997.  I said I never did.  We argued on the phone for a while, I got fed up, realized that it was going nowhere and asked for a copy of the original application to be sent to my home.  She said she would mail it, and I would receive it within 7-10 days.  I never got the copy and never heard from Discover.  Then around June, 2012 I got another call from a Discover agent claiming I owe money.  I went through the same process like the last time, never got a copy of the original application and never heard from Discover again.  Around November 2012 the same thing happened with a slight twist.  This time, a lady from the Fraud Department said that I was a Joint Holder, and therefore I was legally responsible for the debt that went bad late 2009.  I told her I was no longer a Joint Holder on that account.  I said I had sent in a written request to remove my name from the account, and Discover had written me back to confirm that my name was removed by Discover.  She said their record showed that they had never received the letter and asked me to produce the letter that they sent.   I told her it was unreasonable for anyone to still keep such a letter for 7-8 years since I had already verified that my name was removed.  Again I requested that a copy of the application to be sent to my home and never got it.

Here's the problem, I realized recently that Discover is now putting this negative account on my credit report as a charge-off.  I wrote to the report agencies to dispute.  But I lost because Discover claims that it's mine.  

I don't know what to do.  I was thinking of hiring a lawyer, but I don't know if there is such a lawyer for something like this that can get this negative mark removed from my credit card account.  Plus the costs involving a lawyer might be high versus the downside of suffering the negative mark.  Even with this negative mark, my scores are 719, 729 and 769 with a monthly usage of around 4-5% from a 105K total credit lines.  The only thing that I can think of that I can get hurt is if I need to take out a mortgage loan.  

Anyway, this has bugged me once in a while until I found this forum.  If anyone has any personal experience with something like this, please let me know what to do.  If anyone has any advice, inputs please share.   Sorry for the long first post, I would very much appreciated any feedbacks.

[trumpet-205]

Sadly this becomes a "he says she says" situation. Burden of proof falls to you if Discover doesn't budge. Without the letter (lesson learned, never throw away those letters), there isn't much to do.

[webhopper]

You can always try the debt validation method... not sure.
I think DV is only good for collection agencies.

[CreditWorld2013]

I honestly don't think you can do much. If it were possible to get at least 1 statement that didn't show your name after the name removal that would be some proof. Unfortunately, a great deal of time has passed. The other thing I can think of is if you have old credit reports from after the split and before the account went negative that showed the Discover Card either missing or if they showed it as "Joint." Again, I'm not sure if you have any old Credit Reports...perhaps if you had/have a mortgage after the split it would appear and if it doesn't appear on your report after the split...Discover must produce a new application showing joint or answer as to why they added it afterwards if it was already deleted. If you can't produce any of those items and depending on the amount of the balance it might be wise to seek an attorney. If the balance is less than the cost of an attorney, etc you should look into perhaps PFD if it bothers you enough. I really don't think you want a CO on your report as it may spook your other creditors if this appears out of nowhere. Also it may impact you for the time being by lowering your score if this continues to drag out a long time. Also if the bank is claiming this recently defaulted the statute of limitations hasn't expired and they can always seek a judgement against you. So in all you must see what you want to do with this. 

[llecs]

OP, look at your reports. Does it say under the responsibility field "authorized user" or "joint account holder"? Makes a big difference.

It's my understanding that once an account is opened, e.g. in your ex's name, that you can be added as an AU, but you cannot be added as a joint account holder because the account isn't yours; it's his. Conversely, once added as a joint account holder upon opening the card, you cannot be removed as a joint account holder until the account is closed.

[bettercreditguy1]

Although this will not resolve your current situation, I would call Discover. Then verify that you area JOINT Holder.You can also look at your credit report, it will show if you are as well.  If you are, then you can request that the account be closed. Most cc issuers will at that time if requested, send each of you a new card with a different card number as individuals without a HP or a new application. You will most likely receive a lower credit limit.  If the amount owed is not that great, then I would pay the account off as to mitigate additional damages to your report. This is how I handled phantom accounts that suddenly showed up during my separation and later my singleness after a divorce. It saved my credit and reduced my stress imeasurably. It also guaranteed that there would be no future problems. Kinda like putting the monkey on their own back.

[GregB]

There are some things that seem strange about this.

If your ex had an account, you could be added as an AU. I don't think you could become a Joint user on that account without a new account being created. I suggest you look at the statements from that time.to see if it actually is a joint account. A credit report from that time would also give you that information.

IF it was a joint account, I don't think they would remove one account holder without closing the account. Look for that info on account statements or credit reports from that time.

What is the date that the marriage ended according to the Judgement of Dissolution? I would suggest you have statements of the account or credit reports from that date.

You should retain all paperwork for accounts, particularly those involved in a divorce. When you collect all the info, I would suggest you keep it permanently. You might need it again in a decade, or two.........