Credit Card Collections
 

Someone I know recently called the bank to discuss payment options for a Credit Card debt.

Some background information: There is a primary card holder and a supplementary card holder.
The primary card holder has been racking up all the debt and the supplementary holder has not used the card in years.

When they called the bank, the bank said that if the debt was not paid in full, both the primary AND the supplementary card holders' credit would be impacted negatively. Could this be true, or is it just a technique they use to make you pay?
I can't figure out how the make the supplementary holder responsible as well since the card was issued based on the primary holder's information.

Can someone shed some light?

Depends on how the card was applied. If a credit is being applied by primary and secondary holder jointly, both credit will get impacted. It does NOT matter who spends the money and thats why you should be careful who you apply the credits with.

Normally, unless you are married couple, or some sort of immediate family, I wouldnt recommend you apply credit jointly.

So, your friend is on the hook if he/she doesnt even use the card and the other guy is racking up all the debt... No other way around it that I can think of, other than your friends sorting them out privately. Even if your friends wants to get out now, he/she still on hook for whatever outstanding balance there is.

what if you're married but did not apply for the credit card together?
how will the spouse's debt impact credit collections?

the primary card holder thats who the debt goes under.

^ that's what I thought too. Because when I was the primary n got a supplementary card for someone, they didnt even have to activate the card. it was already done as it's the exact same number as mine.

+1

In the OP, if both primary/secondary card rating gets impacted, then that would mean that the credit that was given was based on BOTH credit ratings, which happens frequently, in an attempt to get higher credit limit.

i.e. if ABC person can only get a credit of $1000, and if ABC and XYZ apply together, they could get a credit of $2000, but they share the debt.

But if the credit is only applied though the primary holder only, and the 2ndary holder is just using primary holders credit, then only the primary holder is responsible for the debt.

So, I mean, depends on how the CC was applied, 1 or both holders can be impacted.