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  1. #1
    Join Date
    Feb 2013
    Posts
    1

    Default Collecting from an Authorized User

    My question involves collection proceedings in the State of: NC

    Hello,

    I allowed an ex of mine to use my credit card as an authorized user (while we were still together obviously). Now that we have broken up, I would like my money back.

    He has agreed to pay me back all that he owes me. I have multiple text messages from him saying that he will pay off the card. While we were together, he would always pay off the full balance every month, in full. However, now that we are split up, he is only giving me about $150 a month and sometimes he is weeks late with the payment. He had racked up an $8500 bill and since he is only making the minimum payment, it is going to take close to 11 years for him to pay the card off!!

    Here is my dilemma: I need the credit for myself. I have purchases that I would like to make on it and having a card that close to it's limit is hurting off my credit score. I had a thought the other day, but I want to make sure that it makes legal sense. I am willing to pay off the card myself and then "finance" the debt for him, at the same interest rate. That way, I can make something (close to $6k of interest at the current interest rate that my credit card is using) out of this horrible situation. However, if I go this route, I feel like I should get something in writing from him saying something like, "I XXX agree to pay the total balance of $BBB in at least $YYY amounts every month with a ZZ% interest rate."

    The only reason I can see to keep the balance on the card is because it *may* give me a bit stronger of a legal position if I ever decide to bring a civil suite against him for the missed payments. Am I correct?

    Sorry for the rambling post. This is quite frustrating for me, and I really don't know anything about my legal options here. Thanks so much for any advice!!!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Collecting from an Authorized User

    You are actually in a better position if you have a promissory note, expressing that he owes you the money, the terms and repayment schedule, and other relevant details making clear that this is a loan. You should try to find a professionally prepared promissory note, and should take care not to set an interest rate that violates your state's usury laws.

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