Credit card debt liability

tyger.eyez

If someone has an additional cardholder on their credit card I was under the impression that if the additional cardholder overspent on the credit card then the account holder was liable to pay back all the money. However someone suggested to me that in some circumstances this may not be the case, for example if the additional cardholder overspent without the account holders permission to the tune of tens of thousands whilst the account holder spent £0 during the entire period then the account holder may not be liable, especially if the credit card company upped the credit card limit without permission and the spend went over the maxmium limit (I always thought the whole point of a maximum limit was that they didn't allow you to go over this but apparently this is not so) . Does anyone know if this is true?

WASHER

I also thought the principle card holder was responsible for repaying the debt. However, if the principal card holder could prove that the card had been used without permission, then you could have a case, but its not an easy one to prove. It usually states on the T & C's on the card that the principle card holder is responsible.

Surely the principle card holder had received statements either online or via the post, so how could the additional card holder spends tens of thousands of pounds without the principle card holder not knowing, the fraud team would have phoned the principle card holder if too many transactions had been made in quick succession, it would be almost impossible to spend tens of thousands without the principle card holder knowing.

tyger.eyez

The principle card holder was not living at their place of residence at the time and whilst they had a forwarding service on their mail only around a third of letters were actually forwarded despite complaints. But this again is very difficult, if not impossible, to prove.

tyger.eyez

Also initial transactions were approved by the account holder but this was at the beginning before they had gone over the limit and the account holder was unaware their spending was out of control.

tyger.eyez

PS: the initial transactions I spoke of that were approved were when the additional cardholder used the card abroad and it was just 1 phone call only and that is the only time they were ever asked to approve any transactions. The only other contact made by the 2 credit card companies involved was the usual statements and letters which did not reach the account holder.

WASHER

How much is the outstanding debt?

WASHER

What to consider before requesting an additional card

There are a few things to consider before you request an additional card on your account. You will be responsible for the card and how it is used which means:

You must ensure the additional cardholder uses the card correctly under the credit card conditions. You can view the conditions by following this link credit card terms and conditions (PDF file).

• You must ensure the additional cardholder keeps a PIN secret in the same way you have to and doesn’t tell anyone
• We will treat all transactions by the additional cardholder as if you had made them and will charge the amount to your account
• You are responsible even if the additional cardholder uses the credit card for transactions you disapprove of or which are not in accordance with the conditions of the account. You can view the conditions by following this link credit card terms and conditions (PDF file)

I have copied and pasted this from the Nationwide, but it also applies to all credit card companies.

You could take advice from the CAB, or even take the additional card holder to small claims court, don't know how successful that would be, but take advice from the CAB.

tyger.eyez

I believe it's around £25,000. Thanks for your help, very much appreciated.