 Collector
plays game: 'Pin debt on the daughter'
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 Dear
Debt Adviser,
My mother had me added as an authorized user, on her credit card,
10 years ago. She recently passed away and the creditor now says
I am a joint account holder and liable for the balance. When I asked
them to pull the application to show me where I signed, they told
me they didn't have to have my signature or my Social Security number,
and that anyone can add anyone as a joint account holder and make
him or her liable for the account. What can I do?
-- Bobbi
 Dear
Bobbi,
I'm sorry to hear of your loss. At a time like
this the last thing you need is someone trying to make a buck off
your misfortune.
Let's start by clarifying the two
terms. As an authorized user, a person has the right to use someone
else's card but is not responsible for payment of the account in
any way. The account information, however, is reported on the authorized
user's credit history. If the primary cardholder is making payments
on time and the account remains in good standing it benefits the
authorized user's credit history. Conversely, a cardholder who does
not make on time payments, misses payments or otherwise does not
meet the cardholder agreement will hurt an authorized user's credit
history.
For example, a parent may get an additional card for
his or her children to help build a positive credit history or to
teach them how to use credit responsibly.
A primary cardholder may add an authorized user to
a credit card account without that person's signature. The primary
cardholder is then responsible for any and all charges made on the
account by the authorized user.
A joint cardholder is a horse of a different color.
He or she has the same responsibility for the payment of the account
as the other cardholder. To be considered a joint cardholder, the
person must fill out and sign an application either on paper or
online, have his or her credit reviewed, and have approval from
the primary cardholder.
You were absolutely right to ask the creditor for
proof of the application and your signature. Because the creditor
was not able or willing to produce your signature or an application,
it is likely you are remembering things correctly and your mother
added you as an authorized user on her account and not as a joint
cardholder.
Some collection agencies buy debt from credit card
companies for pennies on the dollar and make a large profit if they
can collect on the account. This might be the case in your situation.
If you haven't pulled a
copy of your credit report from all three bureaus yet, I suggest
you do so. I want you to check on how the account was reported.
If the account was reported with you as an authorized user rather
than joint you will see it in the field called "account ownership"
on Equifax or "responsibility" on Experian and TransUnion.
If it shows "joint" already and you disagree, dispute
the item with the credit bureaus and have them check it out,
also. A dispute will start a clock running under the Fair and Accurate
Credit Transactions, or FACT, Act that requires verification or
removal of the item from your credit report in 30 days.
My take is that the collector might be trying to bully
you into making a payment for which you are not responsible. Legitimate
collectors don't need to make up imaginary laws to get paid. The
real laws work just fine. Stick to your guns and make them prove
that you owe the debt.
Good luck!
The Debt Adviser, Steve Bucci, is the president
of Money Management International Financial Education Foundation
and the author of Credit
Repair Kit for Dummies. Visit MMI
for additional debt advice or to ask a question of the Debt Adviser
go to the "Ask the
Experts" page to ask a debt question.
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