Legal Question in Credit and Debt Law in California

A friend of mine was working for a company called ACN; the company was a third party contractor for many different services, including Verison cellular. As a representative to this company she ordered some phones from Verizon via a company called ACT, Simplixity. When she placed the order they asked for a credit/debit card and told her only $1 would be charged for verification purposes. She did not have one and asked if she could use mine, with the understanding from this company that it was only to be used for the $1 verification. I verified with the company that only a $1 would be charged. Unfortunately, after the order was placed for a couple of her clients, in the coming weeks some personal problems came her way and she did not follow through with the terms of the contract for the free phones she received. (By the way, she had them delivered to my home.)
Several months later she received a bill addressed to her but at my address and at that time I contacted the company in writing telling them that she did not live here and at the present time I wasn't sure how to get in contact with her. I explained that my home address was never her place of residency and the she only used it to have a delivery destination.
Last week when I was going over my statement I found that $200 had been charged to my account from this company Simplixity. I called them and was told that since the terms of the contract for the phones were not met, that they charged my account. I informed them that I never had a contract with, nor did I work for ACN, and that I never authorized them to charge my account. I told them at the time the order was made that I was told that my account would not be used for any future charges, only for the $1 charge on the day of the original order. I was told that since the person that had the order with them did not finish the terms of the contract, that since my card was the only one they had on file, I was being charged.
Is this legal? I have only been charged $200 up to this point but was told there is an additional $600 they plan to charge me. I never contracted or bought anything. Any advice? As far as I can see, this company is fruadulently using my account.

Asked on 3/08/13, 1:08 pm

2 Answers from Attorneys

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If it was a credit card, immediately file a written complaint of unauthorized charges with your credit card company. Proceedures for this should be on the back of your statement. If it is a debit card you have fewer protections. Contact your bank and dispute the transaction, and have them immediately issue you another card with a new number.

Answered on 3/08/13, 1:20 pm

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