Legal Question in Credit and Debt Law in New York
Liability for Corporate Credit Card Debts
My mother has a credit card on one of my corporate credit card accounts (as just an additional cardholder; not the primary one). A dispute has arisen and the issue has gone to a collection agency. They are harrassing her, not me, and saying that, in addition to me, she is personally liable for all charges on the account, even though she has only ever made one charge, two years ago for $30.00, which was paid. She has no legal right to open or close the account, or insititute or cancel cards, and all the charges in question were made on my corporate card, not hers.
2 Answers from Attorneys
Re: Liability for Corporate Credit Card Debts
If she did not sign anything whereby she agreed to be held additionally liable.....she is not liable.
She MUST write to the company and tell them to stop contacting her or she will pursue a claim against them under the FDCA.
If they contact her again, after receiving the letter (certfied RRR), she needs to get their name and file suit. (you can get attys fees also)
As for you, they have already violated the FDCA by contacting a third person (Mom) about YOUR debt. You also must write to them and tell them that they must cease contacting her or you will bring a claim against them as well.
Re: Liability for Corporate Credit Card Debts
Read your cardholders agreement. It usually makes the individual liable for the "company" debt also.
Good Luck
RRG
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