The Obligations of Authorized Credit Card Holders

What Recourse Does the Lender Have Against Authorized Credit Card Holders?

What is the difference between a Co-Signer and an Authorized Buyer?

Thank you

Muriel

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I'm not sure what you mean by "Authorized Buyer." In what context are you using this term?

Do you mean someone who has been issued a credit card on someone's else account - usually spouses or other family members.

In that case, the main card holder is responsible for the debts of all authorized holders. If a spouse co-signs the credit card agreement he or she is just as responsible for the debt as the primary card holder is.

Look at co-signing as assuming responsibility for the debt. Make believe that no one else signed the contract. You are as responsible for the debt as if there were no other signers of the financial contract.

If you are a co-signer, you are on the hook until the debt is paid in full.

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Yes, someone who has been issued a credit card on someone's else account - usually spouses or other family members.

Co-signer responsible, authorized buyer, not responsible????

Muriel

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No, the authorized card holder is the responsibility of the primary card holder and his co-signers - if any.

The primary card holder is allowing others to be issued cards on his account, so he is on the hook.

If the authorized holders run up bills they don't have to repay them, absent some kind of contractual agreement between the authorized and primary card holders.

So in a corporate setting, where employees are issued company credit cards, there is usually some kind of contract where the employee has to reimburse the company for personal expenses charged to the card (or pay the bill themselves) and, if they don't, the company can pursue legal action against them.

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Perfect. That makes sense.

In this situation, my father was the cardholder and my mother the authorized user. My father just recently passed away, and they (credit company) indicated that a co-signer and authorized user is the same.

I told them I don't believe so.

All statements was always in his name and my mother was never listed as the Co-signer, in fact, according to her credit reports, she is listed as the authorized user.

Thanks again Chris. I appreciate your prompt and detailed response.

Muriel

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I have been thinking about this.

I suggest you get out the credit agreement and read what it says about authorized users. Make sure your mother never signed any contracts pertaining to this account.

You also have to realize that while charges made while your father was alive might not be her responsibility, if your mother continued to charge after his death, she might have created a new relationship with the bank and she will have to repay those charges.

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Thank you.

No Charges were made after his death.

Muriel

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