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  1. #1
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    Jun 2011
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    Default Son Used Credit Card for $1400

    My question involves collection proceedings in the State of: New Jersey. On a recent cruise, my son used the credit card I gave him for school purchases to charge over $1400 in alcohol, spa and miscellaneous expenses. He has had this credit card for more than 4 years and has never previously used the card for unauthorized expenses. Can I/Should I report this as credit card fraud? What would the potential penalty, if any?

  2. #2
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    Jan 2011
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    Default Re: Son Used Credit Card for $1400

    Quote Quoting betrayed06
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    My question involves collection proceedings in the State of: New Jersey. On a recent cruise, my son used the credit card I gave him for school purchases to charge over $1400 in alcohol, spa and miscellaneous expenses. He has had this credit card for more than 4 years and has never previously used the card for unauthorized expenses. Can I/Should I report this as credit card fraud? What would the potential penalty, if any?
    Is this a card in his name but under your account such that you have the obligation to pay? Like an additional card on your AMEX account?

    Did you have the credit card company put a limit on the account?

  3. #3
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    Jun 2011
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    Default Re: Son Used Credit Card for $1400

    Yes, unfortunately, he was an "authorized" user on the MC account. I did not have a limit on his purchases. Up until this event, I thought he could be trusted.

  4. #4
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    Jan 2011
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    105

    Default Re: Son Used Credit Card for $1400

    Quote Quoting betrayed06
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    Yes, unfortunately, he was an "authorized" user on the MC account. I did not have a limit on his purchases. Up until this event, I thought he could be trusted.
    You have a civil cause of action against your son, then. Breach of contract.

    If you were hoping to get out of paying the $1400 by alleging fraud, it is not going to happen. He was an authorized user and no limit was placed on his purchases. There was a verbal agreement between you two that he would not use the card except for school purchases.

    I suggest that you make him pay you back by getting a job. If that means no summer break trips, no spring break trips, etc., too bad for him. He needs to pay you back with interest. Because that is what you are going to have to do with the credit card company.

  5. #5
    Join Date
    Jun 2011
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    Default Re: Son Used Credit Card for $1400

    Thank you. I'm afraid he is getting involved with a bad crowd and although he has agreed to pay me back, I believe I need the protection of a court order.

  6. #6
    Join Date
    Jan 2011
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    105

    Default Re: Son Used Credit Card for $1400

    Quote Quoting betrayed06
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    Thank you. I'm afraid he is getting involved with a bad crowd and although he has agreed to pay me back, I believe I need the protection of a court order.
    You can sue him in small claims court for breach of contract and get a judgment against him. You will have to provide proof of the verbal agreement if he contests it, but proof can include your testimony and the past bills showing that in 4 years he had never used the card except for school purchases.

    I don't know how it works in NJ small claims, but where I live, you file your claim using all the forms that are online at the county clerk's office. Then he answers your complaint and you have a pre-trial meeting. If he doesn't contest you in this, he will admit to what he has done and say he will pay you back. Then you prepare a stipulated order that both parties agree to saying he will pay you back with interest outlining the terms of the interest accruing and the payment schedule. Then you ask the court to enter it as the final disposition of your case when your trial date comes.

    In my state, all of the instructions for doing this are found online at the county clerk's web site.

    I would wait a bit to see if he pays you as promised since in the last 4 years he has been trustworthy. He was probably drunk all the time on the cruise and did things he wouldn't ordinarily do. No need to waste judicial resources if he is paying on time as promised.

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