Can an authorized user be sued for unpaid credit card debt?
Summary
An authorized user on a credit card can use the card but is generally not legally responsible for paying the debt. If the primary cardholder does not pay, the credit card company cannot usually sue the authorized user, but joint account holders have equal responsibility.Key Facts
- An authorized user is allowed to use a credit card but does not sign the cardholder agreement.
- The primary cardholder applies for the card, signs the contract, and is legally responsible for payment.
- Authorized users usually do not undergo a credit check and have no legal duty to repay charges.
- Credit card companies cannot normally sue authorized users for unpaid balances.
- Debt collectors may contact authorized users but have no legal claim to their payment.
- Joint account holders have signed the agreement and share legal responsibility and liability for the card balance.
- If the primary cardholder cannot pay, early action like debt settlement or credit counseling may avoid lawsuits and reduce financial stress.
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