Legal Question in Credit and Debt Law in California

Multiple Accounts

If a person has an account with a wireless company that is being collected on by a third party collection agency and an active account with the same wireless company (separate account with an active service), can the wireless company, terminate service to the active account due to the default of the first account? For example: customer opens an account as a co-signer, but also has a separate account for himself. The person he co-signed for defaults and the account is terminated for non payment, but the co-signer is the financially responsible party. This account goes to outside collection with a continued refusal to pay. Can the wireless company terminate service to the active account based on this default?


Asked on 6/08/04, 5:52 pm

2 Answers from Attorneys
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Multiple Accounts

In a word, "Yes!"

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Answered on 6/08/04, 8:55 pm
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Multiple Accounts

Probably not. First you'd have to read the contract carefully. Understand that each contract provides EACH party with rights AND obligations.

Under the contract that is in collections (call it contract A), the co-signer has failed to make payments. That's a breach of that contract and it entitles to wireless company (WC) to stop providing wireless service under that agreement.

However, under contract B, if the customer has paid the bills on time he/she is still entitled to receive wireless service from the WC. A breach of contract A (probably) does not allow the WC to stop perfoming under contract B.

HOWEVER, if contract B has expired, or is month-to-month, the WC can decide not to do further business with the customer just like the customer can decide to stop doing business with the WC.

ALSO, I suppose it's possible that contract B COULD have a provision whereby the WC is entitled to terminate contract B if the contract B customer is in breach of some other contract with the WC. I doubt that such language is in the contract but read it because it COULD be there.

Make sense?

Feel free to call or email me for clarification.

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Answered on 6/08/04, 11:30 pm


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