In this thread, Slainte asks a question that I would be interested in knowing the answer to as well, but I figured I’d start a new thread about it.
When I went to college, I was made an authorized user of my parents’ American Express card. I never once used the card. Then, a couple years ago, my mother racked up $3000 on it and left town, refusing to pay it. My father doesn’t particularly care about his credit, and so he hasn’t paid it either. Meanwhile, the $3000 debt shows up on my credit report.
I’ve never personally been contacted by a collections agency about this, but when it becomes obvious that neither of my parents are going to take responsibility for this, can they come after me?
Are you sure you were an authorized user and not a joint account holder ? I’ve been both on different accounts, but only the joint accounts involved agreeing to pay the bill.
I’m not entirely sure. My parents didn’t really consult me about it, they just decided it would be a good idea. They just said, “hey, we’re going to add your name to our account so you have a card in case of emergencies,” and I was issued my own card with my name on it.
“They just said, “hey, we’re going to add your name to our account so you have a card in case of emergencies,” and I was issued my own card with my name on it.”
I only just recently found out that the debt was listed on my credit report. I’d never used the card and pretty much forgot that I had been added to the account, it was seven years ago. Since I’ve never been contacted by any collections agencies about it, and my parents sure didn’t inform me that I would be responsible for any charges if they didn’t pay them, the thought that I could end up responsible had never crossed my mind.
An authorized user is not legally liable for the account balance. Anyone can be added as an a.u., but to be added as a joint user (and therefore sharing liabilty), you would have had to sign a document stating you were aware of this AND given your information (social security number) so the account could be reported to the credit bureaus.
The credit bureaus make mistakes. I would dispute the account with them first. They will then contact AMEX to find out if you are truly liable.
IMO, based on what you’re saying, you were just an a. u. Your parents are liable but you still need to dispute with the bureaus to clear your credit report. I’ll warn you now, it can take up to three months for everything to be cleared up. Act now.
Philster, not to hijack, but I heard that TransUnion requires employees who investigate disputes regarding consumer accounts at the rate of 9 per hour. Would this be in line with industry practices?
