Re: Shared credit card account

Generally, when two persons co-sign on an account, they will BOTH remain liable to the credit card company on that account no matter what agreements they may make between themselves.

Such persons may be able to make an agreement that is enforceable between themselves, but the credit card company won't be bound unless it agrees as well.

So, two co-signers can agree that one person is going to make all of the payments; but if that person fails to pay, the credit card company will still be able to collect from either one of the co-signers (or from both) at its own election.

The real answer is that if people want to have separate liability on credit accounts, they need to contact the lender and find out how to do so through the lender (usually by closing the joint co-signed accounts and opening new accounts that are not co-signed joint accounts).

Please call if I may be of any further assistance on this or any other legal matter.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

Re: Shared credit card account

Just draw up a simple agreement that says that you'll pay the charges you incur and girlfriend will pay hers. Since the credit card company is legally entitled to collect the full amount due on the account from either of you, your private agreement should also say that if you have to pay her charges to protect your credit, she agrees to indemnify you (i.e., pay you back) for her charges and vice versa. It doesn't necessarily have to be notarized to be legal, but if you're concerned about her denying she signed it later on, get it notarized or better, witnessed by someone who knows you both.

Re: Shared credit card account

11 March 2002

Thank you for your message. Well, this could be a

test for your relationship with your girlfriend or it

could be just too much trouble. As with say, a long distance

phone card that you both use, a credit card company will

hold you EACH liable for ALL charges, even if the two of you

agree to only be responsible for your own personal charges.

So these agreements between the card holders will have no

bearing on the credit card company. The same could be said

for a situation like a lease that is in both your names.

By the way, the fact that the agreement you propose to make between

yourselves might be notarized, has nothing to do with its validity or

long range effect. It is a contract binding between the two of you

regardless of whether it is notarized.

It might become difficult over time to separate these charges

between one person or another. It could work, if you keep to your

pledge mutually, and are meticulous about going over each month's

bill. A better approach would be just separate charge cards. I am

not on my wife's charge accounts, and she is not on mine. Less

bloody that way.

So good luck, but I would caution you to be clear that your

agreement includes a pledge that each person will pay charges

which that person has incurred and which will post on the

charge card, even if the relationship were to end. Bad enough

for the relationship to be over, than to be dealing with

"dunning" the other person over (or be stuck with) $1,500 or

so of outstanding charges. Be serious about your pledge,

deal with the charge bill as it comes each month, and be ready

to deal with the issue forthrightly if the relationship is over.

Again, however, as far as the charge company is concerned, each

person whose name is on the account can be held responsible for

all charges. If your girlfriend is the only name on the charge

account, she is the only legally responsible party, regardless

of the agreement between you.

Charles Michaels

1579 Dellsway Road

Baltimore, MD 21286