Authorized user's credit report

Dear Dr. Don,
I am in the process of a divorce and will have to file bankruptcy once the divorce is finalized. The debts are all mine except I have a joint credit card with my son. It was my error in putting his name as the authorized user and me as a user.

I am trying to work the credit card company to take my son's name off the card, but they said until the account is current and until I send them a letter or affidavit acknowledging that I am the sole person responsible for that account, it cannot be done. I am willing to agree to a hardship program to get his name off.

He has applied to the FBI, and I do not want this account to hurt his chances of getting into the bureau. He is also getting married in November, and I do not want to hurt his credit in that area either. I was the one using the card, not he. It was for college expenses, etc. I will have to list this account on the bankruptcy forms, but I truly want to have the company take his name off. Can you advise me how I should handle this debt? -- Judith

Dear Judith,
An authorized user on a credit card is someone that can use the account but isn't responsible for making payments on the account. When a spouse is an authorized user on an account, the credit card companies are required to list the payment history on both credit reports under the provisions of the Equal Credit Opportunity Act of 1974. The Federal Reserve Board later gave creditors the option of reporting the payment history on an account for any authorized user. This Bankrate feature has more information on the dangers of being an authorized user.

That said, you should be able to remove your son as an authorized user on the account. I'm not sure if your credit agreement allows the credit card company to enforce a requirement that you be current on your account before you can request that your son be removed from the account. Review your credit agreement to see if that provision exists. Meanwhile, go ahead and make the request in writing, and send it to the credit card company using certified mail return receipt requested.

If your credit card company is a national bank, you should file a complaint with the Office of the Comptroller of the Currency about the company's unwillingness to remove an authorized user from the account. Since you're required to accept the financial consequences arising from having an authorized user on the account, your ability to remove someone other than your spouse from the account as an authorized user shouldn't be restricted by the credit card company. Even if your credit card company isn't a national bank, the OCC site will point you toward the right place to file a complaint.

Once the credit card company removes your son as an authorized user on the account, it should take about a month for the information to be removed from his credit report. He should review his report from all three major consumer-reporting agencies.

Handling the debt is another matter. Keeping your credit history in good shape during a divorce is difficult. Keep in mind that while a divorce decree may speak to the division of debts, creditors don't have to honor the terms of a divorce decree in pursuing payment of those debts.

Staying current on your bills is good advice. Making timely minimum payments on your bills beats racking up late fees and late payment notations on your credit report. If you don't have any real prospects for staying current on your bills, you should look at any hardship provisions offered by your creditors or credit counseling as a way of managing the repayment of these debts.

If there's no way to repay these debts from your income, it's time to consider bankruptcy. I'd recommend that you work with a bankruptcy attorney rather than trying to file on your own.