Legal Question in Consumer Law in Georgia

Minor forgered parent signature on credit card

Our Corporation is located in VA. The customer is in GA.

A 17-year-old Georgia resident used his mother's credit card to order a web hosting account. He told us his age and that he was using his mother's credit card. We faxed him an authorization form for his mother to sign. He sent the form back by fax with what he said was his mother's signature. He forged her signature on the credit card authorization and the hosting contract. The mother recently discovered the charges (incurred on Sept 10) on her credit card statement. We incurred significant non-recoverable expenses including setup time for an ecommerce account, phone calls and a $100 license fee for the software do not want to offer a refund. The mother is filing charges against her son for either the fraud or for stealing her credit card. Does this action on her part mean that she can get a full refund of these charges ($259 total was charged to her credit card)?

We feel we acted in good faith and that the problem was caused by her inability to control her minor son rather than any error on our part. Perhaps we should have asked for a copy of a driver's license with her signature - but he could have superimposed the forged signature on that too.


Asked on 11/10/03, 1:17 pm

2 Answers from Attorneys
Daniel Hawes Hawes & Associates

Re: Minor forgered parent signature on credit card

Your question was, "Does this action on her part mean that she can get a full refund of these charges ($259 total was charged to her credit card)?"; and the answer is probably, but probably not from you. The credit card issuer is liable for all but fifty bucks to the consumer; your liability to the credit issuer is dependent on your user agreement with them. You're not liable for other people's fraud in a criminal case against the person who committed the fraud.

I'd also point out that you can file suit against the defrauder where you are located in Virginia under the Virginia "long-arm" statute. Va. Code sxn 8.01-328.1. The basis of personal jurisdiction in Virginia is "transacting any business", which can include a single transaction.

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Answered on 11/10/03, 5:45 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Minor forgered parent signature on credit card

The mother may simply put in writing to her card issuer her contest to this unauthorized charge

(from her perspective)and, once the card issuer investigates and confirms that the charge was incurred on the basis of her forged signature, they will do a charge back to her account, and your company will be required to refund the $259.

Your assumption that this "problem was caused by her inability to control her minor son rather than any error on our part"-----is, utterly, presumptuous on your part, if I may say so.

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Answered on 11/10/03, 3:11 pm


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