(NC) Do you know that if you apply for a joint credit card with another person you are responsible for the transactions and debts connected to that account? Before signing anything, make sure you know your rights and responsibilities as a joint borrower, as follows:
Who is liable?
When you co-sign a credit card, you are taking on a serious commitment. The credit card issuer considers you, as the joint borrower, responsible for both the debt and the payments that need to be made to pay it back. If a borrower does not pay back the debt, the bank or financial institution may require the other borrower whose name is on the credit agreement to pay back the full amount.
Note: The conditions on certain credit cards may state that authorized users (secondary cardholders) can be held responsible for any outstanding balances, even if they didn’t sign the credit card application. Be sure to read the credit agreement carefully and get a clear understanding of who is responsible. In case of doubt, contact your credit card issuer.
What you are entitled to receive:
When a federally regulated financial institution agrees to issue you a credit card jointly with one or more other people, each borrower is entitled to receive the information documents. All joint borrowers must receive copies of the credit agreement and the monthly statements unless they consent either verbally or in writing (on paper or electronically) to waive this right.
To find out more about your rights and responsibilities as a joint borrower, visit the Financial Consumer Agency of Canada website at itpaystoknow.gc.ca.