As an "authorized user" am I responsible for a non payment on a credit card?

Question

Let me explain... my sister started a business last year, that I helped her with. I did a lot of traveling, so she gave me her credit card to pay for gas and hotels. I was just reviewing my credit report and there is the credit card account. It is 90 days delinquent. I have tried really, really hard to improve my credit, and this is a negative entry that I just do not need. I know I can dispute, but do I really have grounds to do so?

Answer 1

Lady Kay...Best Answer for Sgt Big Red...he's right on the money on this one....as always with his answers...Follow his advice and you should do just fine!!! Good Luck!!!!

Answer 2

No, you are not liable as an authorized user.  In fact, it may or may not actually be included in your credit score.  The credit bureaus are in the process of phasing out counting authorized user accounts in scores.

Dispute the item with the credit bureau and ask your sister to remove you as an authorized user.

Answer 3

If you are an authorized user, then the credit card company reports as if you were an owner of the credit card, like a co-signer.

You can try to dispute it, but it won't be easy.

It will report on your credit, good or bad.

Answer 4

First of all let's get this information corrected.  

YES,  all negative activities will show up on your credit report

Now to the part about you having to pay.  The answer is NO, you do not.  The credit bureaus claim the practice of reporting the accountholder's activities on the authorized users credit report is justified, but they don't state why it is justified.  Could it be that they have adopted this policy on behalf of the hundreds of credit card companies who subscribe to their services?  Perhaps this is the real reason why since every day authorized users are effectively blackmailed in to paying credit card debt they are not legally obligated to pay by the credit card companies simply because the main accountholder won't pay.  

Find out if you are indeed nothing more than an authorized user.  In other words, make sure you are not really a joint accountholder, which would make you liable for 100% of the debt.  You can do this by pulling your credit report.  On the credit report you will find a single letter notation that designates you as a J - Joint accountholder or A - authorized user on the account in question.

If a collection agency is hounding you for her debts then here are your choices of action:

If you are nothing more than an authorized user, send the creditor or collector a certified mail, return receipt requested letter denying liability for the debt on the grounds that you are only the authorized user and are not legally responsible for the debt.  You can send along a copy of that portion of your credit report showing you as nothing more than the authorized user  if you like.  Your letter should also tell them to leave you alone, to stop calling you and that you will be reporting their attempt to collect a debt from you when you are not legally responsible for it to the Federal Trade Commission and the Attorney General's office of your state.  If you know in what state the creditor or debt collector's company is based, you can also file a complaint with the Attorney General in that state for their deceptive trade practices.  

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 5

If it is on your credit report, then you are not an authorized user. You are a cosigner. You are just as liable for the debt as your sister.