What to Do When You Let Someone Use Your Credit Card Because That Person’s Card Was Declined and Then They Don’t Pay You Back
* The names have been changed and are fictitious in order to maintain and protect client confidentiality.
Vivian (a homeowner) hired Greg (an installer) to install doors and windows at her residence. Vivian and Greg attended at a Home Depot store together to select her doors and windows. When Vivian presented her credit card to make the $5,342.17 purchase, her card was declined. She asked Greg to put the purchase on his credit card, which he did. Vivian promised to pay Greg back for the purchased items, but she did not do so.
I issued a Plaintiff’s Claim against Vivian in the appropriate small claims court. She did not file a defence. Accordingly, I was able to obtain a quick judgment from the court for the total sum of $6,153.76 inclusive of costs.
Because Vivian owned her home, I filed a Writ of Seizure and Sale of Lands against her. Beyond my doing that, the client did not want me take any other collection steps. As a result, the Writ would sit there as a passive collection tool until the judgment debtor would either sell her home or obtain new financing of the home. At that time, the Writ would have to be paid out in full inclusive of accumulated post judgment interest.
There one very important takeaway from this matter:
Be very reluctant and disinclined to charge other people’s purchases to your credit card