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Home >> Lending >> Credit Cards
Credit Card Problem because of Joint Account
I have had a joint checking account with my dad since 2001. In 2006, he got a credit card with the bank and used it as overdraft protection for our joint account. I never signed for it, but my dad put it in both of our names. He racked up a large amount on it, and the bank says that I am liable for the debt now that my father is dead. The bank admits that I never used the credit card as I was never issued a card from the bank. However, the bank claims that I am liable because I transfered money out of the joint checking account into my personal checking account with the same bank. How can a bank even set up a credit card in my name without my permission? I don't understand how I can be liable if I never used the card.
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 It seems that the bank is exercising some rather creative collection efforts, and unless there are some unusual property laws in your state, you should resist! As a rule, unless you signed a contract or promissory note, or provided the bank with a written guarantee of the credit card debt, you are not liable, notwithstanding your statement that your father put the account in both your names. The fact that you never used the account (admitted by the bank) argues that you didn't agree to its terms through use, either.
As for the bank's claim that you somehow agreed to liability by moving money from the joint checking account into your personal account, how can they be sure the funds you moved came from the credit card line? Even if they could make that connection, the assertion that you became liable for the line through such a transfer is blowing smoke.
In your place, one might say: "Show me where I agreed in writing to liability for the credit card account, or stop harassing me with your collection efforts." If they refuse, contact an attorney.
Published on BankingQuestions.com 6/18/09
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