SNFernandez

Business CC/CO; CA reporting on AU's report

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My husband was an authorized user on a business credit card I had, which was later charged off (business hasn't been open for years). It is by far our largest debt, but the statute of limitations has run its course.

The strange thing is the original account never reported to either of our creditor reports, and the collection agency only reports on my husband's. He disputed the entry on Experian and it came back verified and updated.

In fact, I've never even been contacted by the collection agency, though he receives a letter every three to six months.

I'm just wondering whether there's any way to get this removed from his report.

Thanks in advance.

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AU on a credit card in a Community Property State is a dicey issue. In the 41 Common Law States the argument would be

"My husband is not legally obligated to pay the debt and therefore it is not his debt. Get the TL off his credit report or I will sue for the FDCPA violation of misrepresenting the nature and character of the debt".

In the 9 Community Property States that argument doesn't work because the debt is legitimately yours, and you being his spouse that makes it part of the Marital Community, and therefore it is legally his.

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First off, the FDCPA does not protect you on this CC, as it was a business account.

Second, just how many years ago did this account go bad? If over 4 years, the statute of limitations has run and they have no legal recourse for their claim. And, if over 4 years, let us know and we'll help you compose your letter.

The 7 year reporting does apply, unless this account went bad over 7 years ago. If over 7, the OC tradeline should be deleted by this time. If not, and they sold the account, the OC tradeline must show "sold or transferred" and show a zero balance. If assigned, it can show different notations, such as "in collections". Also, if over 7 years, it can be reported as a positive, but, must show no negative info. If the collector is reporting on their own tradeline, and using dates of their own, such as their purchase date, you can challenge this, as the original date of first delinquency stands to determine all legal reporting. Only dates regarding OC apply to legal parameters. Other dates reported by a CA/JDB/ATTY may only be their dates of assignment, or first reported, for example. They are forbidden to change original date of first delinquency unless you have voluntarily signed a new agreement/contract, or made a payment of any sort, as allowed by your state's statutes.

As to the AU question, California is a Community Property State. As "Flying" noted, it is dicey on liability. Regarding reporting, my wife had three CC's and I was an AU on all. All I did was send a letter to the CRA's that I was an AU and would they delete. In less than 14 days I received my corrected CR's and all was removed. And, as of this past year, they were still not being reported on mine. I haven't pulled our annuals yet.

Lastly, I'm just now getting started in this very same situation on a personal CC. One of my daughter's lost her husband in 2009. He had a CC she was an AU on. Allied is now threatening her with all they have. Their problem is they they are doing it by phone only, no mail. Yes, I dispise Allied and am using my anger to send them packing. Yes, I'm going to start a thread on this as I have some questions for the others here.

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Thanks for your response.

It has been over four years (DOFD was 7/2007), so the SOL has run its course.

Because we're residents of California, we figured liability would probably be an issue.

We disputed on Experian because it's my understanding they don't report negative AU tradelines, but it came back verified.

I was hoping to get this account off his CR at least on Experian so he could try to find a creditor that uses that bureau and open an account to start rebuilding.

Maybe we'll try writing to the bureaus and see if that works.

Thanks again.

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Just send the CRA's a letter that he was an AU on the account and would they please delete it. Nothing more unless you mentioned on first dispute something other than AU as reason. For example, many state "not mine" first time out. If you did something along this line, then, simply explain that you were in error as you thought that was proper verbiage, or, whatever. You get the drift.

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Thanks. I'll definitely try that with the other accounts.

The more I read about it, the more concerned I am about this account because the balance is so much higher than the rest, and it was a business account that was used for personal expenses. I'm not sure if that may constitute fraud or get me intro trouble down the line.

It wasn't intentional. I just stupidly leaned on this line of credit when I couldn't pay my bills for an extended period of time. Same thing that happened with all my accounts.

This is a very problematic account, but the SOL has run its course.

Hopefully they can't do anything beyond hurting our credit.

Edited by SNFernandez
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SOL on collectability and SOL on reporting are two completely different things. Creditors can report debts that are OOS for collections as long as they are not OOS for reporting. The CA SOL for collections is 4 years, the Federal SOL for reporting is 7 years.

The two SOL's also have dofferent starting dates. SOL for reporting is DOFD - Date of First Delinquency. The SOL for collections is the last payment made.

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I understand the difference between the SOL and the CRTP, but thanks for your response.

I waited until the SOL had run out before even trying to dispute the account on my husband's report.

He was recently declined for a $200 secured card with the bank he's used for about 10 years, so I'm just trying to clean this up as much as I can.

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