My wife was an authorized user on a business credit card. Is she responsible for the debt on that card?
June 3, 2010 
7 Comments
ryecal asked:
The company filed bankruptcy. the Card was discharged in the bankruptcy. They are trying to collect from my wife. Yesterday we received a letter that the bank was taking $1800 from our checking account to pay towards the debt. Can they do this and what should we do?
The company filed bankruptcy. the Card was discharged in the bankruptcy. They are trying to collect from my wife. Yesterday we received a letter that the bank was taking $1800 from our checking account to pay towards the debt. Can they do this and what should we do?
We have taken most money out of our checking acount already, but had to keep it open for now.
The company filed bankruptcy. the Card was discharged in the bankruptcy. They are trying to collect from my wife. Yesterday we received a letter that the bank was taking $1800 from our checking account to pay towards the debt. Can they do this and what should we do?
The company filed bankruptcy. the Card was discharged in the bankruptcy. They are trying to collect from my wife. Yesterday we received a letter that the bank was taking $1800 from our checking account to pay towards the debt. Can they do this and what should we do?
We have taken most money out of our checking acount already, but had to keep it open for now.
I dont think they should be able, I would contact a lawyer ASAP.
It depends. If this was a business card issued to your wife under the auspices of the business, used only for business related expenses and issued on the business' credit report, no, she shouldn't be responsible.
If it was a business card and your wife applied and was granted the card based on her credit report and not that of the business, yes, she is responsible.
they can collect from her only if they were unauthorized purchases. if it's a business card and she had permission then the business pays.
if it's her own business, she's screwed
you need a lawyer.
Talk to a lawyer. The problem is that even though it was a company credit card, your wife was possibly at least nominally responsible for making the payments on it. This way, if she made unauthorized payments, the company would not reimburse her and she would have to pay it herself. Check to see if it shows up on her credit report. If not, then she might not be responsible. Either way, talk to a lawyer. This is not fair as she was buying stuff as part of her job and she should be able to fight this. And tell the bank not to take any money from your account or else you will go to your state attorney general.
Good luck.
If it was business only, have her contact the Banking Commission in your state and the FTC toll free @ 1-877-382-4357. You should also close the checking immediately and go to a different bank.
take the money out of your acct asap.
Did you ever provide your checking account to the debt sharks (debt collectors)? If you didn't they don't have your bank account number and are just trying to scare you. And looks like it worked if you took out the money. If they have the bank account, than that means you gave it to specifically them, and you should close the account.
I work for a company and i am an authorized user for a credit card from them. I have heard of people getting collection calls and letters about being sued for their companies debt after it tanks. You need to make sure you send them a letter stating the account was not your wifes, it was for a company and all purchases were company related. You wife has no stake in the company therefore, owes nothing.
Bottom line, this is a messed up situation but at the end you should NOT pay them… ever! This situation is messed up because your wife's credit will get effected and you will need to follow through with credit bureaus to get these removed.
Good Luck.