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QUESTION: My friend was listed as an authorized user on her father's credit card. Her father passed away and she timely notified the credit card company of his death. She has pristine credit. She never used the card after her father's death, but they call her and she's still paying the card because she's worried about her credit. Her father died with no assets. Is she liable for this card? And if she stops paying can the credit card company report negative on her credit files. Thank you
ANSWER: Gregory,
An authorized user is different from a co-applicant. As an authorized user your friend has no liability to the credit card company. If she was a co-applicant she would hold the same responsibility
In some cases when the primary card member passes away, the credit card company adds the authorized user as the new primary card member.
This credit card company should not be reporting this to her credit profile.
Good Luck
Ontrack Financial Group
---------- FOLLOW-UP ----------
QUESTION: Thank you very much for the prompt response. The credit card company was reporting the good payment history while her father was living. Can they now report negatively if she refuses to pay? I thank you again for helping me resolve this issue for her.
Gregory,
Not a problem, it's nice to help people such as you. It's really a gray area ( we want the good reporting and not the bad). Since she is an authorized user they shouldn't be reporting this account to her credit bureau good or bad. If she calls and demands the account removed she shouldn't have a problem. Believe it or not some credit card computer systems don't distinguish the difference between a primary card member, and an authorized user and may make a mistake and report wrong.
Ontrack Financial Group
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