Credit problem
Date: Thu, 10/26/2006 - 14:59
I Have been building my credit since I was 18. I am now 23 years old. I've always paid my bills on time never made a late payment. Last year a friend of mine asked me to co-sign a credit card for her. She had no credit history what so ever. So I figured i'd help her out. With the agreement that she would pay all the bills on time. I had put a $2,000 credit limit on the card. Everytime she reached her limit they up the credit without my knowledge. she was only paying the minimum payments. Sometime around may I recieved a phone call saying that her payment was past due. so I called her and asked her why she had not pay. she said she was broke and couldn't afford it. so I canccelled the credit card so she couldn't charge on it anymore. With an agreement with her to still pay off the card. Every week I recieved a call saying I owe money and every week I called her, and she said she borrowed the money from her sister to pay off the card and that they probably just didn't recieved it yet. For a month I didn't get a call. so I thought they finally got the payment. Then last week I recieved a call from the credit card company again. so I told the creditor that the card should have been paid off and the account is closed. The creditor then told me that they have not recieved a payment Since May which is when I closed the account, and said I owe over $4,000 on the card. so I tried to explain to the creditor that I didn't make those purchases and the other person on the account did. But they said I was responsible for the payments even though the other card holder made the purchases. so I called my friend and asked her about it and she said it was all true that she hasn't been paying. I don't understand how they could raise the credit limit without my knowledge, but I still have to be accountable if she can't make the payment. They also said it would be on my credit report and that it was going to a collection agencey if they dont recieve a payment cause its 135 days past due. I don't have $4,000 dollars. these purchase aren't even mine. I don't think it's fare that I have to be accountable for this. I have my own rent and bills to keep up with. Is there anything I can do about it?
Please help
Hi. I'm sorry, but it's true, you are accountable for the ch
Hi.
I'm sorry, but it's true, you are accountable for the charges. It's a shame that a friend would do this to you. Basically, you're going to have to pay it, or there will be an ugly mark on your credit. You can take your friend to small claims court, but I guess you would have to decide what it's worth to you. I'm really sorry this happened, good luck.
You should talk to your friend about this and tell her that you
You should talk to your friend about this and tell her that you have reached this stage where the company is holding you accountable for this debt. Since the purchases were done by her, she can at least sit with you and find ways to solve the problem. Tell her that the debt has to be paid or else the company will file legal case against you since it is your card. Your friend may not hesitate in asking help from someone if this problem is to be fixed. Right now, you have to avoid a possible court cast at any cost.
At this stage, a debt consolidation program will also be a good option. You will be given a payment plan through which the payments will be done to the credit company. The counselor will be talking with your creditors and the plan will be framed in that way you can afford. Your friend can help you in this crisis by getting a job and do the payments.
