Credit Card Forum
  1. #1
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    Default Fraud by authorized user, bank says I'm responsible?

    I gave my credit card to someone that was working on my house. I believed that I could trust this individual but he ran up a huge number of charges that I did not tell him were ok.

    Now my credit card company says that because I gave him the card I am responsible for the charges even though they were made with out my permission. Can they really do that? Do I have any option for getting rid of these charges?
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  2. #2
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    Of course they can. You gave the individual a card as an authorized user, that means he is authorized to make charges on your behalf. There is no "fraud" here, just be more careful who you give a card to from now on.
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  3. #3
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    Charges by an authorized user are authorized. You are on the hook for the charges. You could try to get money out of the person that you gave the card to but that is between you and them. It has nothing to do with the credit card company.

    I know that they say "hindsight is 20/20", but if a contractor needed a card for charges I would go with a prepaid option. It gives the contractor the convince he needs but gives you some control of his/her spending.
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  4. Centurion Member Pete838's Avatar
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    The law varies from state to state. When we say "authorized user" are you saying he had a card with your name on it, or a card with his name on it tied to your account? The merchant bears some responsibility to check that the use of the card is legit, and if large purchases were made on a card by him but without his name on the card there could be an avenue. Did he sign your name? Were the purchases remotely explainable as being within the scope of the project he was working on for you, or completely for his personal use?

    But for the most part, unfortunately, you bear responsibility. It is a civil matter between you and he. You may even speak to the State Attorney to determine if it may be grounds for theft by deception, or grand theft.
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  5. #5
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    Quote Originally Posted by odyssey81884 View Post
    I gave my credit card to someone that was working on my house. I believed that I could trust this individual but he ran up a huge number of charges that I did not tell him were ok.

    Now my credit card company says that because I gave him the card I am responsible for the charges even though they were made with out my permission. Can they really do that? Do I have any option for getting rid of these charges?
    If the person is on the account, officially, as "Authorized User", knows passwords, etc., then yes, you are liable. You could say it was stolen. Do they have YOUR signature on file? You could sue him, take him to small claims court.
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  6. #6
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    Default Sadly You're Responsible, BUT....

    If you and the individual specified what this card be used for, and the individual you gave permission to use the card used it in a way you both did not agree upon, they can be held liable.

    There are two ways of going about this situation. One, you and the individual that used your card can come to an agreement about payment. (probably not likely in your case) And second, is that you could sue them in small claims court.

    The second option has a much better chance of working, and you may get your money but will not have a very good relationship with the person you sued.
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