Closed CC Accounts

[spikelavende]

What happens when credit card companies close your account, while there is an authorized user on your card -- while planning to file Chapter 7? Can they go after the authorized user?

I'm scared to contact the credit card companies now because I don't want to raise any red flags.

Any insight is very appreciated!

[justbroke]

They can't go after an "authorized user" unless the additional cardmember agreement calls for this. For example, American Express is one that definitely enjoins "additional" cardmembers (authorized users).

For Amiercan Express (AMEX), each charge an individual makes on "their" card is "their" responsibility. AMEX is the only card company that actually issues a different "credit card number" for each user! (it's the last 4 digits of the card). This way they can track an individual and hold them to the charges. Also, the primary cardholder is always responsible for all charges.

I hope that helps.

[spikelavende]

Oh no... any advice if AMEX is one of the companies??

[SMinGA]

Check your card holder agreement to determine how the account is set up. I don't have personal experience w/ Amex, but if you added someone as an AU to any card (as in, getting them a card on your account without them agreeing to take on financial responsibility) then they are still just an AU. AU is not the same as joint account holder.

[justbroke]

Oh no... any advice if AMEX is one of the companies??

Yes. If you were an additional cardmember with AMEX, you better be able to prove that you paid for everything you charged against your particular card number.

It happened to me once, where I was on a business account with my brother's business. I was on the account with a TEMPORARY card for one month. I charged $300. However, my brother asked if I could pay the whole bill, so I ended up paying over $2K that month from MY bank account. When AMEX came after me, I showed them that I had a card for ONE month, made TWO charges totaling $300 and PAID $2K+. They left me alone.

However, that wasn't before threatening me about my purchases and that the additional cardholder agreement makes me liable for ANY purchase made with my card number (since the card numbers are all different).

[ejhamilton]

Technically, an "Authorized User" is not legally liable for the debt, with most credit card companies. However, I had my hubby add me to one of his cards a few years ago as an "authorized user" and they added me as joint instead. Not sure how they did that without speaking to me, but whatever. It'll be in the BK anyway so I don't care anymore.

I worked for Macy's(in the visa credit card department) and authorized users were only permitted to shop and were not legally liable. We didn't even have their social security numbers on file.