Ex-Girlfriend Maxed Out Credit Card As Authorized User

rushin_max · #1 09-08-2009, 08:49 PM

My question involves collection proceedings in the State of: CA

Hello,
Here's my story;
I added my g/f as an authorized user on my AMEX credit card. We broke up in Dec. 2008, so I took away her card but forgot to take her off my account. Anyway, on Oct. 1st I receive an e-mail about some unusual activity on my account. Immediately called AMEX, but the lady on the phone tells me there has been a mistake, there's no activity on my card, and apologizes for the inconvenience. 3 weeks later I log on to my account only to find out I have close to $4K of charges on my account and every single charge was made with my ex g/f's card. Later I find out she had called AMEX and reported her card lost, and had them send her a replacement to her new address. I reported her to the fraud dep., but got a response that they dropped the case since she is an authorized user and she admitted to using the card.

Anyway, I'm a little lost now. Should I concentrate on the fact that AMEX screwed up by telling me there wasn't any activity on my card(although gonna be hard to prove)? Or the fact that they sent her a replacement card to a different address without my knowledge/authorization?

Or, should I just let it go and take her to small claims(which I don't want to do)?

I really want AMEX to take some of the responsibility, and go after her for the charges. I mean, maxing out the card within 3 weeks should have gave them a red flag that the card is being used fraudulently.

Furthermore, I've been looking at terms for my card and the whole authorized user vs additional card member got me a bit confused:

First there's this:

"Additional Cardmembers do not have accounts with us. Instead, they are authorized users on your Account, and the Cards issued to them may be cancelled by you or us at any time. You must notify us to revoke an Additional Cardmember's permission to use your Account. You are responsible under this Agreement for all use of your Account. You are responsible under this Agreement for all use of your Account by the Additional Cardmembers, and by anyone else you or an Additional Cardmember lets use the Card, and the Charges they incur will be billed to you. You have this responsibility even if you did not intend for an Additional Cardmember, or other person, to use the Card for any transactions."

Summarized, basically means I'm liable for all charges.
But then there's this:

"An Additional Cardmember is not liable for Charges incurred by the Basic Cardmember or by other Additional Cardmembers. However, by each use of the Additional Card to incur Charges, the Additional Cardmember indicates his or her agreement to pay us for the Charge if you fail to, or refuse to pay it, and we may, at our discretion, pursue Additional Cardmembers for payment of Charges they incur or authorize. You authorize us to provide Account Information to Additional Cardmembers and to discuss the Account with them. "

I actually called AMEX and quoted them the second bold highlight, but the phone-lady was trying to confuse me and said this means my ex. is liable to pay ME, not them(which made no sense). Then I re-read the quote for her and emphasized on "us", as in AMEX. After that she was speechless, and said she doesn't know how to go about this and gave me a number to their legal help dept.

Sorry for such a long post and so many questions, I just want to know what's my best course of action to get this resolved ASAP, hopefully without courts.

Thanks in advance,
Max

P.S. ...also, as a bonus, I'd like my ex to get arrested...if possible.

jk · #2 09-08-2009, 09:26 PM

Quote:

Anyway, on Oct. 1st I receive an e-mail about some unusual activity on my account

Quote:

We broke up in Dec. 2008,

did the unusual activity show up before you broke up and you ttook the card away...or is the unusual activity going to take place this Oct?

Quote:

Or, should I just let it go and take her to small claims(which I don't want to do)?

I don't see any other action for you than to sue the exGF. , I would like to know what you believe AMEX did wrong? If anything they did is contrary to their rules, then go after them but I suspect this is your fault for not removing the ex from your account. Don't blame somebody else for your lack of action.

Scott67 · #3 09-08-2009, 11:27 PM

I don't have a copy of the AmEx agreement, but assuming you do, I'd recommend that you review their rules for issuing a replacement card. I have credit card accounts with my wife and kids (some adults) having cards. I am pretty sure that whenever a new card was issued to anyone, I had to approve it. - something along those lines would be the only way I could see an action against AmEx.

The dates you state do not make sense. You received an email from AmEx on Oct 1, 2008 about unusual activity on your account. You broke up and took her card away in December. -- So, you need to get the facts straight. Did she run up the bills while you were together on her original card? Or, did she run them up later on her replacement card?

Either way, you can take legal action against her. Giving someone a credit card and letting them use your account does not mean that they can indiscriminately charge anything they want to. That would depend upon whatever agreement you had between the two of you (which could be hard to prove either way). But, if she bought items for herself without your permission and with no benefit to you, you should be able to establish a case. Consider, when married couples divorce, liabilities (including credit card debt) and assets (including items purchased by those credit cards) are part of the issues that are dealt with in the settlement.

However, you taking the card away from her was certainly notice that she was not to use the account any farther. Any charges that she made on the second card which she obtained without your permission constitute theft. You not taking her off the account, weakens your case with AmEx, but based on your post, she clearly obtained a card that she knew she had no right to and charged purchases to you. That is theft. -- You may be able to establish a criminal case against her on this, but I don't know if you'd be able to convince a prosecutor to pursue the case, worth a try.

So, your main cause is against her. If you can establish through the AmEx card rules that they should not have issued her a second card without your permission, you would have cause against AmEx for any charges on the second card -- you should be able to tell the difference by the purchase dates.

rushin_max · #4 09-09-2009, 03:49 PM

Sorry, I meant Aug. 1st

rushin_max · #5 09-09-2009, 08:37 PM

sorry for another post, couldn't find the edit button.
Just wanted to clarify that we broke up in dec. 2008, and I got a call about unusual activity on aug. 1st of 2009...and on Aug. 24th I discovered close to $4K of charges.

Anyway, thanks for the great advice. I'll definetaly try to find the card renewing agreement, and see if AMEX have possibly screwed up. I admit I messed up by not taking her off the account right away, but I feel AMEX should be at least partially responsible since they misinformed me by telling me there was no activity on the account when I called in. And the fact they sent a replacement card to a totally random address.

Quote:

she clearly obtained a card that she knew she had no right to and charged purchases to you. That is theft. -- You may be able to establish a criminal case against her on this

I like that, Could I file a police report on these basis? Is it really considered theft?

jk · #6 09-09-2009, 08:59 PM

Quoting rushin_max

I like that, Could I file a police report on these basis? Is it really considered theft?

You could. You may get the same argument from the courts though that you did from me: you did not take her off the account so apparently you ultimately had no problem with her charging items to the account.

I suspect the DA will make a determination based more on your relationship with her since you revoked the card than the actual use of the card.

Scott67 · #7 09-09-2009, 09:19 PM

Yes. jk is right that we don't know what the DA would do - and I don't know any case law to help you. Bit, I would liken it to a situation in which a person leaves his front door standing open and leaves $1,000 in cash on a table near the door. He has definitely done something stupid and foolish. But, that does not change the fact that someone who walks into the house and takes that $1,000 without permission has broken the law.

What is in your favor is that (1) AmEx can tell you when they issued the card and to what address they sent it (2) AmEx can provide you with the exact dates and amounts that were charged to that card.

File a police report. $4,000 is NOT petty theft. If you can get the DA to press charges, what justification could your former girlfriend offer to have obtained the card and made the charges? The case seems stronger when I think about it more.

Your comments on these thoughts, jk?

jk · #8 09-10-2009, 03:02 PM

Quoting Scott67

Your comments on these thoughts, jk?

It surely wouldn't hurt to call and report it. Since we are not privy to all the information nor do we have any idea as to what kind of relationship there is between the two, all one can do is look at what is presented and go from there.

If the OP had no relationship what-so-ever with the girl, then there is a good chance there could be charges. If there was some sort of continued relationship and the DA see's it as one where the girl might have had reason to assume getting a duplicate card was legit, then the DA may not even consider filing charges. A lot will depend on what each party says during the investigation.

OP can take both criminal and civil action as well. I don't know but there may even be court ordered restitution possible as part of the criminal punishment. It may be better to file the criminal case and see what happens before filing a civil suit. The criminal penalty may remove the need for a civil action and a criminal penalty means the court will demand the restitution gets paid where in a civil suit, OP would be on his own to try to attempt to collect the judgment once it was ordered.

Quote:

Bit, I would liken it to a situation in which a person leaves his front door standing open and leaves $1,000 in cash on a table near the doo

but, if the person was allowed to come in and take money previously and believed they had the right to do it again, it makes a criminal charge a bit more difficult to prosecute.

rushin_max · #9 09-21-2009, 09:13 PM

Just wanted to do an update:

First off, regarding the relationship(if anyone really wants to know). We split up on very bad terms and haven't spoken or maintained any kind of relationship since.

Now the good part,
Did a little more research regarding making a criminal case, and it looks like I might have a shot at filing charges for embezzlement.
http://www.leginfo.ca.gov/cgi-bin/di...0&file=503-515

But wait, it gets even better...
I check my account a few days ago, and looks like my ex has made a payment on my account. This made me surprised and confused at the same time. I have contacted her, and it seems like she wants to make payments. Which is ok with me, because I don't have waste my time/money on courts.....but, since she's willing to play ball, can I make her sign some kind of agreement/contract that will state she is liable for all the charges she inquired on my account, and if she doesn't pay, she will be prosecuted for breach of contract...or something along those lines? Or is there anything else I can make her sign, to make her legally responsible for her debt?

Thank you for your help,
Max

Scott67 · #10 09-21-2009, 11:11 PM

Quoting rushin_max

But wait, it gets even better...
I check my account a few days ago, and looks like my ex has made a payment on my account. This made me surprised and confused at the same time. I have contacted her, and it seems like she wants to make payments. Which is ok with me, because I don't have waste my time/money on courts.....but, since she's willing to play ball, can I make her sign some kind of agreement/contract that will state she is liable for all the charges she inquired on my account, and if she doesn't pay, she will be prosecuted for breach of contract...or something along those lines? Or is there anything else I can make her sign, to make her legally responsible for her debt?

Thank you for your help,
Max

Well, I don't know you and I don't know her - but to me, that is a bad bet. Yes, you can have her sign something. No, you can't guarantee that she'd be prosecuted for breach because that would be a civil matter. It is less likely that a prosecutor would pursue a criminal case if you put a civil agreement in place between the 2 of you. She made one payment. How confident are you that she'll make a second one?