Category «Debt settlement»

It’s been a while but I remember

I had a client who was listed as an authorized user on his mom’s credit card. (I have a mediation service).. anywho, she had filed bankruptcy and passed away at least 3 years prior to him and his wife coming to me.

Well, at the time they were trying to purchase a home and this debt (I believe it was GE), can’t recall was on his credit report, yet it belonged to his mom & she had filed against them in bankruptcy. Well, come to find out yes, he was responsible..but what saved him from the debt was she put him down as an authorized user 3 months before his 18th birthday and I explained to them that they could not enforce a contract on a minor. That is the only thing that cleared him.

He also had no idea he was listed as an authorized user, never used the credit, etc. So I am not sure that all the advice everyone is giving you is correct. I believe they can pursue you..

I would think even more so if you purchased items and signed off on the receipts. If they can verify your signature (even if you signed your mom’s name) on any purchases & you are an authorized user…you have agreed to owning the debt. I say all of this because it takes me to another client who had problems with the DA’s office and that issue came up with her. But, I don’t think she was responsible for those purchases she did not sign for.

Being an authorized user

Being an authorized user does not make you responsible for the card if you are not married to the card holder. Think about it this way. When I was 15 I was an authorized signer on my father’s credit card and no where on my credit report does it state this account. Also, this authorized user is not contractually responsible for the debt.

Also, it’s a little different when married couples are involved. If I am not a cosigner but an authorized user on a credit card, I am equally responsible for the debt because we are married.

Or think about this…a business that sometimes have their employees as authorized users. If the business doesn’t pay the debt the credit card company doesn’t have the right to pursue the authorized user. They have to go after the company.

Collection agency help

About one year ago, i had an account w at and t wireless.. it was a horrible experience. their billing was a joke. they were double and triple charging our account for phone calls. we had a shared plan.. we have been disputing the charging ( 1562.00) with them for a year. the charges belong to a collection agency and we continue to dispute them. now we are on the the second collection agency, they sent me a settlement for half the charges, so that i could pay them about 781 and settle w them.

i got this letter that week, and the offer expires dec 1. they said in their letter that this is a one time special settlement, but the settlement has to be paid be dec 1 ( cutting it a bit close), and in a one time payment.. is this a good idea? should i do it? the only way that i can afford to pay it, if i put it on my credit card…

if they keep switching collection agencies, i will keep disputing the charges and explain to each collection agency all the errors w their billing systems.

please advise me.

thanks a bunch, i look forward to hearing some solutions. happy holidays! 🙂

“Settled for lessor amount” question

A “settled for lessor amount” will stay on your credit report for 7 years. However, you can go to the creditor that reported that mark and ask them to report “paid in full”. It never hurts to try.

A settlement is better than bankruptcy, but to say if it is better than a delinquency will depend on the people that look at the report.

Most will not look past the most recent 2 or 3 years. Few look further than that.

There may be other ways to remove the “settled for less” with a reputable credit restoration company but I don’t know them.