Posted on: 21st Jan, 2010 09:59 pm
My mother added me as an authorized user on her credit card. She passed away and I continued to use my card, but I also continued to make the payments. The credit card company learned of her passing and they closed the account because they are no longer able to charge interest. They then gave the account to a debt collector and they are asking me to pay the account in full, which I don't have the money to do. Like I said, I was fine with making monthly payments, but this is no longer an option. What will happen if I don't pay it other than it having a negative impact on my credit?
Hi an,
If your credit card account has been discharged and it has been sold to a debt collector, he will come after you for the outstanding debt. But if you don't have lump sum money to pay off the entire debt, talk to the debt collector and ask him to set up a repayment plan to repay the debt. They are more likely to offer you a repayment plan. They are unlikely to sue you at this point in time because they know if they do that, they will not get the money. So, negotiate with them, set up a repayment plan and pay off the debt over a certain period of time. Also, negotiate with them and find out how they are going to report the account to the credit bureaus once you start making payments.
If your credit card account has been discharged and it has been sold to a debt collector, he will come after you for the outstanding debt. But if you don't have lump sum money to pay off the entire debt, talk to the debt collector and ask him to set up a repayment plan to repay the debt. They are more likely to offer you a repayment plan. They are unlikely to sue you at this point in time because they know if they do that, they will not get the money. So, negotiate with them, set up a repayment plan and pay off the debt over a certain period of time. Also, negotiate with them and find out how they are going to report the account to the credit bureaus once you start making payments.
Thank you for the helpful information. I just want to make sure that I won't get in trouble for fraud even though I am an authorized user.
If you're an authorized user then you shouldn't be liable for it. Make sure to pull your credit report to MAKE SURE they haven't reported you as a charge off.
I would threaten to sue them if they tarnished your credit. The only person liable for the debt is the primary or joint account holder NOT an authorized user. If you're an authorized user then you're not liable for the debt.
I would threaten to sue them if they tarnished your credit. The only person liable for the debt is the primary or joint account holder NOT an authorized user. If you're an authorized user then you're not liable for the debt.
agreement once again - banker is 100% correct. authorized users are just that - users of the card. there is no obligation whatsoever on an authorized user to make payments. in fact, when someone passes, no family member is liable for payment on any existing debt of that person, other than on joint accounts. an estate would be held responsible if it exists, but descendants and others are not at all responsible to pay debts incurred by someone who is now deceased.
not only ought you to bring up the thought of a lawsuit to that creditor, you ought to contact your state's attorney general's office to alert them of this situation, and you ought to consider contacting the federal trade commission to report them (ftc.gov).
not only ought you to bring up the thought of a lawsuit to that creditor, you ought to contact your state's attorney general's office to alert them of this situation, and you ought to consider contacting the federal trade commission to report them (ftc.gov).
