Expert: William Payne - 7/28/2007

Question
im in new york
recently a friend posed an interesting question:
if someone uses  another person's debit or credit card, what is the law?
are there extenuating circumstances?
e.g. if the  owner of the card had borrowed $ from the thief?
or if the owner had been holding $  for him?
or if the woner  was given $ to  purchase things for the lender who got tired of waiting for him to do so, and ordered stuff himslef?
or paid bills?
doee anything about the legality change if the card owner was the unauthozed user's fiance?
by thief i dont mean the actual card was stolen and used
only the number?
or in general, how does one protect themselves from a spurned lover, when they have prior to your breakup or argument ahve given u card data to use , and /or to pay ,mutual or sole bills, or to pay bak a debt , etc and u use the card and they can claim u were unauthorized?
what will the reaction of the bank be?

and the ramifications for civil and criminal prosecution?
what if  goods were ordered on line  or by fone and the  UU cannont be traced?
under what circumstances is  a freind allowed to use  a debit or credit card?


if goods were bought would the police obtain a search warrant and take them from the UU premesis?
or reverse the  bill payments?
or involve the delviery service  utilized and the one that witnessed the signing of the shipping  delivery or who sigend for the package?

how doe sone protect themselves from getting in trouble  in such scenario when u want your $ bak.\

if someone grabs $ form me can i grab it back ?
if i givee someoen $  to hold , and they refuse to use it as agreed upon or to  give it back can i seize it?
if i do so will i b prosecuted?


Answer
Yom,

Thanks for the question.

I am not sure what the laws are in New York concerning credit cards, but I'll see if I can answer most of the questions you have posed.

Generally, when you obtain a credit card (account) you are either the sole holder of that account or you sign up as a joint account holder (spouse, mother/child, father/child, etc.)when you apply for the account.

The person(fraudualent) who is the account holder is responsible for the debt, unless you can prove a fraudulent use or unauthorized use of that account.

Some precautionary steps you can take:

1. Never obtain a joint account with a girlfriend, boyfriend.

2. If a boyfriend/girlfriend need/want something, purchase with cash or with the card, but you are liable for the debt. Do not let them use the card.

3. Never let anyone borrow your card or account number to use. You are liable for the debt.

4. Use cash to make small item purchases like, lunches, dinners, groceries. entertainment items, and etc.

5. Credit cards should be reserved for emergencies or large ticket item purchases.

6. Shred all bills or credit card statements before throwing them away.

7. With cash money. If you let someone borrow money have them sign a promissory note to pay it back. A good rule of thumb to use is if you have money to lend out, don't expect to get it back.

If you have someone use your credit card or account information, without your permission, report it immediately to law enforcement and to your credit card company.

I hope this helps out.

Good luck and best wishes!