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Subject:  Re: I have a collection!!! Date:  10/6/2003  7:44 PM
Author:  joelcorley Number:  171157 of 312145


I wrote, You're analogy is flawed.

To which you replied, No, my analogy is not flawed. You misread what I said. You want to talk joint account, when I said authorized user. Reread it - it makes perfect sense.

Ok, let's do that subsitution on my entire paragraph. I would have written, You're analogy is flawed. Suppose I have a credit card account and my XSO is an authorized user. Imagine she makes a mail-order purchase and they ship the product before receiving an authorization. If the authorization is refused, the fact that my name is on the account doesn't make me liable for the purchase. Their only recourse is against her.

Uh... Ok. Didn't seem to make much difference to me. If she made a purchase from a merchant and she used an account that also had my name on it, exactly how does that enter me into the contract between her and the merchant? Especially since the credit card company refused to authorize the purchase?

As far as I can see, I never have a contractual obligation with the merchant, even if the purchase is authorized. My sole obligation is to the credit card company. If she is unable to complete payment with my credit card, that's not something the merchant can sue me for because I wasn't a party to the transaction or the contract.

However, if the merchant subsequently attempts to ruin my credit because she failed to pay for merchandise, I can sue the merchant under the FDCPA and possibly under the FCRA. Also, I have an affirmative defense against any litigation they might bring because I didn't enter into a contract with them.

- Joel
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