Secondary Card holder / Authorized Users Credit Card Debt Liability

[duckxtales]

Search Keywords: Authorized Users, Secondary Card Holder, co-signer, Credit Cards, liable, liability, debt, United Recovery Systems, called neighbors, primary account holder

Hello all,

Thanks for whomever that setup such a great forum for people that are entwined in this kind of mess. Well as for my problem I just got a call from a debt collector about a card that I was authorized to use while working with someone on a start up company. Basically I worked for him and he made me a secondary card holder so I can purchase inventory and parts for the business. Well now it seems that they are calling me saying I am held responsible because I used the card too. The debt is 28k and there is no way of me paying such a thing and I am not even associated with him anymore. I only had that card for about 2-3 years and just last 2006 I had that card cut and canceled.

I have to call this debt collector back, what should I say? I was not able to reach the employer.

thanks

[HHM]

Demand to see a copy of the "Application" that you signed (note, they wont have this because as an authorized user, you would not have signed one). You are an authorized user, not a co-signer.

First thing you want to do is gather some information if you can...name of the collection agency (they are required under the FDCPA to identify themselves during all communications with debtors). Get a mailing address.

[duckxtales]

should I say i was working for this person and yes i did charge to this card since i was buying inventory for his business? I basically built computers for him which he sold and he paid me on the side for my work. Should I tell them any of that? or should I just stick it to them by asking show me the application I signed and nothing else?

And what do I do then after I get their collection agency name and address?

thanks a bunch! hope my problem helps someone else too.

[lrprn]

First ask them for their name, mailing address, and phone number. Then ask them to send you a copy of the credit card application you signed. Don't volunteer any other information. They don't care what you were doing with the card. And all you care about is if they can prove you were a co-signer rather than an authorized user. A co-signer is responsible for paying what is owed on the card, an authorized user is not. If they can't produce a signed co-signature agreement, then you are off the hook.

[duckxtales]

ok the collection agency called me back and i told them what you stated, but now they tell me that I was a secondary user and not a authorized user so i am held responsible for this debt. now what do i do?

she said my credit would be affected aswell and that there is no way to remove my name until it is paid off. What is the difference from authorized user and secondary card holder? they said they even have my social security number....

[HHM]

ok the collection agency called me back and i told them what you stated, but now they tell me that I was a secondary user and not a authorized user so i am held responsible for this debt. now what do i do?

she said my credit would be affected as well and that there is no way to remove my name until it is paid off. What is the difference from authorized user and secondary card holder? they said they even have my social security number....

They are playing games with you to some degree...again, simply demand to see any document that you signed. Ultimately, they are not going to say "opps, our mistake, sorry". Their job is to make contact with you and keep gathering information...thus, the advice, do not volunteer anything.

All you do is ask for Name, address, phone number, also tell them "I dispute the validity of this debt", please send me the credit card application with my signature on it. If they don't give you the information, hang-up.

Unfortunately for you, this is going to be a pain in your ass for several months.

One thing you may want to do is pull your credit report, and see if this card was "ever" reported on your Credit History.

[duckxtales]

yes this was reported under my credit report. I didnt see it until dec 2006 which then I called amex to cancel it and they did. I thought that was over and now this... They even called my neighbor...

[duckxtales]

should i call american express about this? I think when I canceled the card I specifically asked the rep about me being liable for the debt which was wat i was concerned about in the first place when i first saw it on my credit report.

I live in NYC and I had the delta skymiles from american express as a secondary card holder. Anyone else was in a similar situation? I can't believe this I am fussing my time over this.... but many thanks to this forum and everyone that is helping here.

-may karma shine on u!

[HHM]

We need to clarify some terminolgy because it makes a BIG DIFFERENCE...

If you are are "secondary user", that means at some point you applied for the card (signed a document of some kind). This usually happens with "joint credit card applications" i.e. when a husband and wife both sign off on a credit card application.

If you are an "authorized user", that means the primary uses has authorized you to use the credit card, but you bear no financial responsibility for the debt.

[duckxtales]

they said that i wasnt an authorized user so i was held liable for the debt. I don't really remember if i signed any documents or not, but i think i just gave my SS# to the primary card holder to add me to his account.

Also I just printed out my transunion and experian today and i have an equifax from DEC 2006. On the equifax under that amex account it says Account Owner: Authorized User

And on my experian under responsibility it says: Not Responsible

And on my Transunion it doesn't even list that card on my credit report.

What does this mean and what to do? this is driving me nuts and it shouldnt even my under me.

[CindyLou]

another thing to consider is whether your former business associate misused your info and added you as a joint account holder without your knowledge. In this case it would considered fraud. You would need to file a police report. i would certainly demand documents that prove what they are saying,

[duckxtales]

yeah next time they call again i'll ask for the documents that state that i am a secondary user. The thing is that even on all 3 of my credit reports it states nothing with "secdonary user" on the equifax it just says "authorized user" and the experian says im not responsible and its not even listed on my transunion.

What does this mean if my credit reports doesnt say im a secondary user, but the debt collector says i am?

[lrprn]

What does this mean if my credit reports doesnt say im a secondary user, but the debt collector says i am?

That the debt collector is most likely lying to scare you into paying them. Remember. if they can't produce the documentation that says you are a secondary user/co-signer, then they have no grounds to ask for your money, period. Get tough! Insist they produce the documentation and don't let them change the subject.

[duckxtales]

GREAT... First I must say thank you all... and I hope others find this thread useful.

Well I called American Express Credit Bureau (18008742717) and talked with the rep about this account and they said I am not liable and that the debt collector was lying into getting my money. The rep said this card will be removed from my credit reports. Right after I heard that I just got pissed off and relieved. Pissed off that the debt collector was just causing innocent people trouble. I must say this is a heartache to deal especially for people that do not know about a forum like this. I can understand that that ***** was doing her job, but it is so wrong to go after innocent people and I'm pretty sure she knows too. Even after I called her back stating that i just spoke with Amex about it and said i was not liable, she said she has me down as a secondary user and that i am liable. And that it would be handled by their attorneys. Another scare tactic.... It just pisses me off that these people can get away with this by tricking innocent people into paying. If i didnt know about forums as a source of help, i would have been scared and might have really paid. And i bet some do.

Well its over now and here is the following information that I would like to share with others in this situation:

1. Print all 3 credit reports: TransUnion, Experian, and Equifax
2. Look for that account in question and check under responsibility and account type.
3. Then call the card company and ask about this and say what you see on your credit report and tell them to remove the card from the credit reports.
4. Ask the debt collector for the documentation that you are a co-signer/secondary user.
5. Don't get intimidated as I was since I was a bit scared.
6. Get down the debt collectors name, address, and number+ext.
7. Report your experience here to help others and spread the word.

The Debt Collector that called me and try to con me into paying:

[edit]
[edit]
1-800-[edit](ext didnt work so ask for her with the operator.)

If anyone is in this same ditch you can email me and I'll be glad to help: [edit]

Pass the Karma along~! Thank You.....

[lrprn]

I'm really glad to hear that everything worked out for you, duck!

I understand that you are just trying to help, but I edited out the collectors name and contact information and your email address that you posted above. It's not a good idea to post that kind of information on an open Internet forum. You can invite anyone who would like to contact you directly to do so by sending you an IM here.

Again, glad that this will be taken off your credit report by AmEx. Enjoy the rest of your day knowing you did the right thing by yourself.