Can a primary card holder sue an authorized user for damages after paying balance in full?

Question

The cardholder allowed the authorized user to use the credit card and over the course of two years the authorized user incurred and paid over $70000 in charges. Towards the end of their relationship the authorized user continued to make charges but slowly stopped paying on the card. The authorized user made few payments over about six months time, while the cardholder continued to make payments to keep her credit from being damaged. The cardholder eventually paid the balance off in full ($14,000) and filed suit in circuit court for damages in that amount. What do you think the outcome will be. Will judge make authorized user pay?

Answer 1

Absolutely. The card holder can seek damages from the authorized user. The authorized user is just that, some the cardholder authorized to use their card. They are not responsible for payments, that falls squarely on the card member solely. The card holder could and should sue the authorized user in the civil courts on counts of promissory estoppel, unjust enrichment among others. It's basically a loan from the card member to the authorized user and that's how it will be treated in the civil courts.

the suit will have nothing to do with the credit card issuer. it is strictly monetary damages between the card holder & the authorized user.

Answer 2

I'm not a lawyer, but without some kind of written agreement between the primary and the authorized user I don't see where this is a winnable case.

When you make someone a authorized user on a credit card they are just that and have the same credit limit as you do with none of the responsibility to repay the debt.

Answer 3

You have no case.  Do you understand the term "authorized user"?  It means the primary account holder gave the that user authority to charge and agreed to be responsible for the account.  If the primary account holder wanted to stop charges on the account, they could have/should have CLOSED the account.