Legal Question in Credit and Debt Law in Pennsylvania
Are we responsible for this debt?
My dad wrote me a credit card check--from his mastercard account--last year for $8,500.00. The bank made an error and coded it for $85.00. Seven months later we were notified by the bank that we owe them $7,415.00 in full immediately. Since other charges were made on the Mastercard since that time, there was not enough credit available to charge this amt to the card. The bank refused partial payments of less than $800.00 a month, I could not afford this so they sent it to a collection agency. The coll. agency has called my father and I thiefs and liars. They are threatening to sue us. They want full payment at once also. Are we liable?
1 Answer from Attorneys
Re: Are we responsible for this debt?
You have raised two issues. First, your dad is liable for the debt, while you are not. It is his account and he borrowed the money. Their internal error does not relieve him of the obligation. While you are not liable to the company, perhaps you are liable to him. That depends on whether you both intended that the amount would be repaid to him. If not, or if the terms were not clear, it may be considered a gift to you.
The second issue is the way you have been treated by the collection agent. The Fair Debt Collection Practices Act prohibits false statements and harassment. If those have occurred, your dad may be able to sue.
I trust this has been, but do not hesitate to call or e-mail on a free initial basis.
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