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Treatment of Credit Granted under LLC (or equiv) that I co-signed for


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I do not see much discussion on credit granted under another entity

such as an LLC where a person co-signs or guarantees the card.

For example, I have a company (LLC) where I was granted credit by using my social to guarantee the card. Well that company was building homes so I probably don't have to tell you things are not going good.

That leads to my questions.

If a card becomes late under the LLC, how does in affect my credit and when? Are there laws that cover this?

Do they have to sue me to make the debt reportable on my social?

Since I just co-signed, how do they make it hurt me?

When applying for the cards, I never physically signed anything to guarantee the card....it was just an on-line application. Just put in

my social. Does that make a difference? Do they need a signature?

Is there a law or way to confirm that I am actually a co-signer?

Is there a thread for debt like this already?

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If you co signed and guaranteed on the card then they can come after you just in the same way as if you had co signed on a car loan. The big difference being there is no FDCPA protection for a business.

If it is in default or late so far as I am aware they can report this on your credit report.

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If you check the T&C's (terms and conditions) of your LLC's credit card agreement, buried in the fine print is your personal guarantee for the payment. Usually the cc does not report to the CRA's under your personal SS while you are current in your payments. However, when you begin to make late pays or default, then the cc reports under your SS # (go figure).

They do not have to sue you to report under your personal credit because you agreed to it when you opened the account. In essence whenever you have a business cc, both the business and the owner of the business (you) are co-signers and the cc co can go after either the LLC for payment or go after you for the payment, or both. (You will see the terms "jointly and severally" used in the T&C's to convey this)

When you applied online, there is usually a link to the T&C's at the time of application. You usually have to 'checkmark' the little box saying that you read and agree to the terms and conditions in order to actually get the card. For good measure, when you receive the card there is a copy of the Terms and Conditions along with the card for your files.

No, its not fair because none of the 'good' payments show on your personal report, only the late pays or defaulted card shows. :(

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