Misuse: Misuer in Possession and No Notice to Creditor

Identity Theft, Account Takeover, Unauthorized Use, Misuse, Apparent Authority, Authorized Use.
David A. Szwak

Misuse: Misuer in Possession and No Notice to Creditor

Postby David A. Szwak » Mon Oct 17, 2005 8:02 pm

ACTUAL AUTHORITY GIVEN:

MISUSER IN POSSESSION OF CARD AND NO NOTICE TO CREDIT ISSUER
:

Charges made to an account by husband from whom the cardholder was separated were "authorized," precluding application of 15 U.S.C. 1602(o), 1643, where the husband was still in possession of one of the cards and, at all times, was ostensibly authorized to make charges and, but for the failure of cardholder to explain the situation, the bank (credit issuer) would have prevented further charges (misuse) to the account. Oclander v. First Nat. Bank of Louisville, 700 S.W.2d 804 (Ky. App. 1985); David Szwak, "Credit Cards In America," The John Marshall Journal of Computer and Information Law, John Marshall Law School Law Review, Chicago, Illinois, Vol. XIII, Issue 4, pp.573-584 (Summer, 1995); David Szwak, "Credit Cards, Credit Reports and Fraud: Enforcing Consumer Rights," The Colorado Lawyer, Colorado Bar Association, Vol.25, No.4, pp.23-28 (April, 1996).

Employer, who provided charge cards to his employees for use and then failed to notify credit issuer when he transferred the company, was liable for charges made and was estopped to deny responsibility. Sinclair Ref. Co. v. Consolidated Van & Storage Cos., 192 F.Supp. 87 (U.S.D.C. Ga. 1960).

Return to “Credit Card Liabilities”

Who is online

Users browsing this forum: No registered users and 1 guest