Legal Question in Credit and Debt Law in Texas

Signature Card Liability

My husband agreed to sign the signature card on the business account of a friend. The friend was going out of the country and wanted my husband to manage the account. The account was previously opened in in the name listed on the friend's DBA. My husband is not on the DBA, he does not own the account, he just has check writting privleges. The account has become over drawn by $1600. The bank now wants to persue my husband for re-payment and has threatend to put this debt on our credit report. My husband was never informed that this account might become his liability when he signed the signature card, and he has been told since then by a branch manager that the liability should fall only on the owner of the account, yet the regional manager insist it's our responsibility. Since when did signing a signature card make someone liable for the debts of the company?


Asked on 2/06/04, 11:11 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Signature Card Liability

The only way your husband could incur liability is if he presented himself as a partner in the business. Otherwise he is not liable for his friend's business obligations even though he may have certain financial privileges.

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Answered on 2/07/04, 1:38 pm


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