Is a Collection Agency Allowed to Contact an Authorized User?
As an authorized user on a loved one's credit card account, you receive a card of your own connected to the primary account. You can then make purchases on your loved one's credit card account using your card. Authorized users differ from joint account holders in that, although they have access to the primary account, they do not share the responsibility for payment. Unfortunately, this fact does not always prevent collection agencies from contacting authorized users should the primary account holder neglect to pay the bill.
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Collection Activity
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The Fair Debt Collection Practices Act (FDCPA) notes that collection agencies can only request payment from the person legally responsible for making the payments. Thus a collection agency should not contact someone who was an authorized user on the original account and demand that the individual pay off the primary account holder's card balance. Even if the charges were made by the authorized user, this does not change the fact that the primary account holder remains responsible for the debt.
Consumer Contact
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While a collection agency cannot legally demand that a former authorized user pay off the primary account holder's bill, it can contact the authorized user in an effort to locate the primary account holder. The FDCPA notes that a collection agency reserves the right to contact friends or family members of the debtor in an effort to locate him provided it contacts each party only once and does not disclose any information about the individual's debt.
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Legal Considerations
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Just because the FDCPA prohibits collection agencies from demanding payment from authorized users, this practice still occurs. Many authorized users do not realize that they are not legally responsible for payment on the account. Should a debt collector threaten the individual with negative credit reporting, a debt collection lawsuit or other consequences intended for the primary account holder, the authorized user may pay the debt in an effort to prevent such events from occurring. Although this practice allows the collection agency to collect the debt without locating the actual debtor, it is illegal to demand that anyone other than the debtor herself pay the debt.
Authorized User Options
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If a collection agency contacts you demanding payment for a delinquent credit card account on which you are or were an authorized user, you have the right to notify the collection agency in writing that it cannot contact you further and that doing so is a violation of your federal rights under the FDCPA. Should the company disregard your notice, the FDCPA gives you the right to file a lawsuit against the collection agency for violating the FDCPA.
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References
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