A friend of mine asked me for advice and I couldn’t give him an honest answer because it’s definitely a legal issue. I thought I’d propose the question here since there are legal minds here that might have the right answer. Besides he doesn’t know about my hobby and I said I’d find out some answers somehow, somewhere and little does he know the clever minds here! So here is his situation; he is a bit of heat with RBC Visa and said that he is a co-applicant of the actual credit card not the primary. Now, the primary card holder was his Grandfather who is now deceased and the bank is coming after him to cover the balance. He said the balance is about $10 000 and the recovery department is willing to make him a deal to pay a lump sum of about $7500! They threatened to proceed with legal action if the balance is not paid within 15 days! The only answers I had for him were that although he’s the co-applicant on the card he should not be responsible for paying the entire balance! Are they using a scare tactic on him and should he offer them a lower offer to pay the balance? To any of the legal people here have any suggestions? Thanks so much people!
Legal Advice needed - RBC VISA
- Thread starter Robocock
- Start date
In hindsight, I wonder if it would have been better to have just received a supplementary card instead...
Your buddy and his Gramps estate is liable...
I work a bank, and I know that they will have to try and collect from both the estate and the secondary card holder. You buddy used the card and the grandfather said he would be responsible, most likely because your buddy wouldn't be able to get the credit on his own. Once the bank knows that the credit support is not there, there's a greater risk now to continue that credit with someone who is not credit worthy which is why they would elect to close the account and settle. If you were in the banks position, you would come to the same conclusion. If the grandfathers estate has no money, than the co-applicant must pay.
Simple as that.
BLSLover
I work a bank, and I know that they will have to try and collect from both the estate and the secondary card holder. You buddy used the card and the grandfather said he would be responsible, most likely because your buddy wouldn't be able to get the credit on his own. Once the bank knows that the credit support is not there, there's a greater risk now to continue that credit with someone who is not credit worthy which is why they would elect to close the account and settle. If you were in the banks position, you would come to the same conclusion. If the grandfathers estate has no money, than the co-applicant must pay.
Simple as that.
BLSLover
Yup, the minute he became a co-signer he became responsible for all debts should the primary card holder be unable to pay....ahem, that's why backs allow co-signing of loans, credit cards, mortgages etc.dg235av2aa64w said:
Ok, stretch your imagination here, what did you friend think being a co-signer meant? That the bank just wanted to see his smiling face and they just wanted to add his signature to their autograph collection???
Believe that is what some people do think. Hear about car loan stories where the cosigner has to pay for the car their buddy bought and drove.tboy said:
Cosigner is there to give their personal guarantee that the loan will be repaid.
If the banks increased the credit limit without your friends knowledge then he might have a case, or at least a complaint to make. $10,000 seems like a lot of credit for a card that required a cosigner.
Strongbeau said:
Agreed but it seemed to me to be a deju vu thing all over again. Damn that groundhog day nightmare, its back.
Good point Bear, that IS a lot for someone who needed a co-signer...then again, maybe he needed a co-signer to GET the limit of 10K. Maybe they would only give the grandfather 5K and he needed the additional support for the other 5....
Since the grandfather never paid back the amount, guess the bank was correct in requiring a co-signer eh? Funny how that worked out.....guess they DO know what they're doing hehehe Damn banks with their hand in my pocket.....tho I don't really mind, my bank manager is pretty cute *eg*
Since the grandfather never paid back the amount, guess the bank was correct in requiring a co-signer eh? Funny how that worked out.....guess they DO know what they're doing hehehe Damn banks with their hand in my pocket.....tho I don't really mind, my bank manager is pretty cute *eg*
I worked on one of these for an acquaintance, making phone calls and finalizing a settlement. The guy was selling a property so the collection agency had some assurance that money was coming in.
I saved him $4,000 on an original debt of $19,000, he was happy because he was shitting himself and ready to pay the whole thing.
The collection agent, for its part, seemed happier to deal with a lawyer than with the debtor.
PM if you want my help, I'm always happy to earn an extra buck or fifty.
I saved him $4,000 on an original debt of $19,000, he was happy because he was shitting himself and ready to pay the whole thing.
The collection agent, for its part, seemed happier to deal with a lawyer than with the debtor.
PM if you want my help, I'm always happy to earn an extra buck or fifty.
Call the collections dept and ask if they can hold off until estate is finalized. However, if grandpa ran up $10K on a visa, he might not have a lot. If he has something, the bank will collect from the estate. If he has nothing, your buddy is on the hook for $10K I'm afraid.
