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Credit card accounts and possible liability

asparagusasparagus Registered User regular
edited April 2008 in Help / Advice Forum
A friend of mine owes me 5,000 and I am not exactly attempting to get it back quickly, he can take as long as he likes in my opinion, though, he said he put me on his credit card account, and before I could object, he handed me a card with my name on it.

Apparently he put me on his credit account, so he is the owner of it, but I am allowed use of it. He said I could charge whatever I liked, and he would be able to pay it off immediately, he just cannot deal with paying me cash or writing me a check for some reason.

My big concern is liability. I am on the account, and have my own card, though if I went out and spent $5000.00 on a giant stuffed animal, would I be liable if he claimed I stole it or something of that nature?

I am not sure how the notification works either, previously I gave him $2500 to use his card for a gigantic online order ( new pc ;3 ) and the order went through, and apparently a random charge for $2500 is of no concern to the company.

Basically.

- Am I liable in any way to his credit account?

- Is a large purchase on a card something I am not able to do? ( 5000 at once )

Kind of vague, but any input helps ;3

asparagus on

Posts

  • ScooterScooter Registered User regular
    edited April 2008
    If your name is on the account, then you can use it. They might give a phone call later to confirm a large purchase but it should be fine.


    My only concern is that, if he's unable to pay you back, but is somehow able to pay off a credit card, my assumption is he's not really paying off the card and instead just racking up debt.

    Edit: In fact, if anything I'd worry about the company coming after you if he doesn't pay, I don't know what their rules are for secondary users.

    Scooter on
  • DaenrisDaenris Registered User regular
    edited April 2008
    asparagus wrote: »
    Apparently he put me on his credit account, so he is the owner of it, but I am allowed use of it. He said I could charge whatever I liked, and he would be able to pay it off immediately, he just cannot deal with paying me cash or writing me a check for some reason.

    He's either lying, insane, or stupid. If he can afford to pay it off immediately he should just be writing you a check.

    To answer your question, I'm not entirely sure but I believe that as just an authorized user on the card you don't really have any responsibility/liability for paying it off or anything. The card is still his credit card and his account. Your name is only on the account as someone who is allowed to use the card. But if I were you I would just give the card back and let him know that he can pay you back in cash/check now or over time or whatever you're okay with.

    Daenris on
  • ThanatosThanatos Registered User regular
    edited April 2008
    This should be ringing all sorts of alarm bells.

    Thanatos on
  • korrianderkorriander Registered User regular
    edited April 2008
    I work for a company in which part of my job is to convince people to open credit cards or add someone's name to their card. Just like with any other contract, each person who is on the card is EQUALLY AND SEPARATELY RESPONSIBLE. Meaning first, if you charge on the account, you're fully responable to pay it off. Second, he can remove his name from the card at any moment and leave you with his own bill of god knows what proportions. Third, he has no right to add your name to a charge card without your consent. That requires access to your full social security number, your date of birth, and the complete set of information off of your drivers license or state id.

    Did you give him your social security number? If not, call the company immediately and tell them you are being scammed.

    The only exception to this is if the card is prepaid. Anything he does on a credit card with your name on it will affect your credit score. Be careful!

    korriander on
  • KyouguKyougu Registered User regular
    edited April 2008
    Man, I hope he's not trying to screw you over, or pulling off a bankruptcy scam.

    Kyougu on
  • firewaterwordfirewaterword Satchitananda Pais Vasco to San FranciscoRegistered User regular
    edited April 2008
    Red flags all around. Call up the credit card company ASAP. Get your name off of that card. Also, if you haven't done so in the last 12 months, get your annual credit report from Experian / Equifax / TransUnion. And have a talk with your friend. I don't know the particulars of your relationship, but this doesn't sound good at all.

    firewaterword on
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  • PeekingDuckPeekingDuck __BANNED USERS regular
    edited April 2008
    Jesus.

    First, you're never getting your money back.

    Second, drop the "friend" and call the credit card company to tell them your "friend" did this without your permission.

    Third, I'd get a membership to one of those agencies that track accounts opened in your name, because I have a feeling this will happen again.

    PeekingDuck on
  • VThornheartVThornheart Registered User regular
    edited April 2008
    Jesus.

    First, you're never getting your money back.

    Second, drop the "friend" and call the credit card company to tell them your "friend" did this without your permission.

    Third, I'd get a membership to one of those agencies that track accounts opened in your name, because I have a feeling this will happen again.

    Ding ding ding ding ding! Stop the contest, we have a winner!

    Your friend's running a con game, with you at the center of it. Don't let him take another dime from you, and report that he included you on his account immediately. You need to find out if that card is in your name (as in he used your personal information to open up an account on your behalf), or if it's in his name and somehow he just listed you as a user (which I think even in that situation he'd need access to personal information in order to do).

    It's a bad, bad thing that he'd do this to pay off a debt. If he could pay the debt to you, he should've payed it to you directly instead of through a credit card. That makes NO sense, and the only rational explanation is that he's not actually intending on paying it off... which means you need to find out, NOW, if this liability could potentially be yours... and in the worst situation, if he's actually opened it under your name (which means he could potentially open more under your name).

    Do this now. And don't trust this friend with your personal information or your money ever again.

    VThornheart on
    3DS Friend Code: 1950-8938-9095
  • capnricocapnrico Registered User regular
    edited April 2008
    For what it's worth, I don't think you need any personal information to add someone as an authorized user on your account, just a first name and last name, and they'll get a card in their name. When I was young and dumb, I had an authorized user added to one of my credit card accounts in the name of my (owned) company, just First Name / Last Name. Obviously since it wasn't a real person there was no personal information to provide.

    But, yeah, make sure he didn't open an account in your name.

    capnrico on
  • VThornheartVThornheart Registered User regular
    edited April 2008
    capnrico wrote: »
    For what it's worth, I don't think you need any personal information to add someone as an authorized user on your account, just a first name and last name, and they'll get a card in their name. When I was young and dumb, I had an authorized user added to one of my credit card accounts in the name of my (owned) company, just First Name / Last Name. Obviously since it wasn't a real person there was no personal information to provide.

    But, yeah, make sure he didn't open an account in your name.

    Aye, what I'd be worried about is if the card with her name on it isn't actually just a secondary account under him, but rather coming right back to the OP because he opened it under her name.

    VThornheart on
    3DS Friend Code: 1950-8938-9095
  • LailLail Surrey, B.C.Registered User regular
    edited April 2008
    If you haven't signed any papers with this credit card company, I'm pretty sure you can't be held liable for anything. He's taking the risk by giving you permission to charge items.

    This does seem like a pretty odd way to settle a debt though...

    Lail on
  • VThornheartVThornheart Registered User regular
    edited April 2008
    Nay, you still could be liable (without litigation), if he took it out in her name (as in filled it out claiming to be her).

    She wouldn't be liable after she could prove her innocence, but that could take time, legal fees, etc...

    VThornheart on
    3DS Friend Code: 1950-8938-9095
  • asparagusasparagus Registered User regular
    edited April 2008
    I asked him about it, and called had him call his credit company while I was in the room with him.

    He just used my name, no social security number, I didn't sign anything and it does appear I am not liable for anything.

    asparagus on
  • ThanatosThanatos Registered User regular
    edited April 2008
    Lail wrote: »
    If you haven't signed any papers with this credit card company, I'm pretty sure you can't be held liable for anything. He's taking the risk by giving you permission to charge items.

    This does seem like a pretty odd way to settle a debt though...
    If by "pretty odd" you mean "ridiculously shady," then yes, I'd have to agree.

    If he can afford to pay off the credit card, why doesn't he just write you a check, get you cash, or get you a money order?

    Thanatos on
  • Nova_CNova_C I have the need The need for speedRegistered User regular
    edited April 2008
    Yeah, this is the strangest thing I've ever heard. Even if there's no scam involved, racking up debt in your friend's name could really, really be bad. If he's decided to pay you back by credit he's dumb, because he's switch an interest free loan to an smack-you-in-the-face kind of heavy interest loan.

    My suggestion is to return the card and tell him to pay you back in another way.

    Nova_C on
  • PeekingDuckPeekingDuck __BANNED USERS regular
    edited April 2008
    Some people never learn.

    PeekingDuck on
  • SzechuanosaurusSzechuanosaurus Registered User, ClubPA regular
    edited April 2008
    Regardless of whether your friend is trying to do something shady, this is just a terrible way to pay off a friend's loan. If you genuinely count him as a friend, tell him this idea is ridiculous and will just result in him being even more heavily in debt; it sounds to me like he is probably in pretty deep already. Cut up the card and tell him to just pay back what he can, when he can and don't be offended if he never pays you back. I have a cardinal rule for these situations - I never lend friends money but I will give them money. I assume from the get go I won't see it again, if I do I consider it a bonus. No one wants to have to put muscle on retrieving a loan from a friend.

    Szechuanosaurus on
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