A few years ago my husband accepted an "authorized user" card access to his mother's account. It has a huge cap. It's maxed now due to the economy fall. We need to file BK, but my husband refuses because he doesn't want to damage his mom's credit, which is crystal. The question: is there any way to negotiate with the CC company as an authorized user and have any leverage at ALL w/ out forcing their hand so to speak, or without damaging his mom's credit? I'm assuming the answer is a resounding no, but this board has always been great to me, so......any suggestions?
If your husband is only an AU on his mother's card, then he's not held liable for the debt. His mother is the one on the hook, and you won't have any account authority just as an AU. Is she still making on-time payments even though it sounds like the balance has been run up to the limit? As long as payments are still being made on time, her credit won't be damaged. If you file BK, it won't affect your mother's credit either just because he's listed as an AU on one of her cards.
A response...I'm so excited! Ok...here is the response. I know he is not liable for the debt. I know his mom is on "the hook." The problem is that my husband put her on "the hook." We are clinging on for dear life to make the monthly payments, but cannot continue to do it for long. If we file BK, won't she be responsible for the debt? Won't the creditor go after her then? She's worked so hard to retire and we used this credit line (sigh) on the notions of payments from clients that never came through ( we are self-employed). Now we are S-T-U-C-K. We are trying to preserve her good name. I was just wondering if an "authorized user" can call and plead for them to cut a deal? Yes, the card is maxed to the brim. And, THANK YOU!
Ok, I'm with you now. You're barely holding on and making payments, she has no clue, and you're worried about leaving her hung out to dry. I can see why you feel stuck, because this is a difficult predicament. She's going to be on the hook for this debt no matter what, and any settlement or payment plan will need to be negotiated with her consent. They won't talk to you as an AU. Are you trying to hide this from her until you can work things out? I would definitely recommend talking with her about the situation before the account goes delinquent. Perhaps there's still something you can work out together? They will come after her if you stop making payments, especially if this is a large amount of money.
I agree with Josh inasmuch as you need to alert her as to what is happening. They will certainly come after her and legally, she is obligated to repay an authorized users charges.
