VIC Trouble with Credit Corp - What to Do?

[RicardoS]

Hi -

During a messy divorce, my ex-wife wracked up 15K of debt on my credit card. I left Australia to live in Malaysia 6 years ago and probably made a payment under duress on that card around 5.5 years ago. Since then I have not made any payment (still annoyed at having to pay for the ex-wife's debt though it's in my name). Credit Corp have now contacted me and demanded 40k. I have not responded but not sure what to do.

 

[Rob Legat - SBPL]

The question is, do you acknowledge that you're liable for the debt? While I accept that your ex-wife incurred the debt, it was on your card so you either gave her permission to do so (despite that probably being a breach of the card's terms of service) or impliedly gave permission by failing to deal with it at the time.

 

[RicardoS]

Hi, no I have never acknowledged the debt either verbally or in writing. I certainly didn't give her permission to use my card. It happened during the time I was moving out of the family home and the computer had a secure listing of all our credit card numbers / csv etc in case something happened. I was a bit slow deleting my details.

Anyway I certainly understand that yes on my card but I don't want to be paying the price. Especially as they say it's 40k. They haven't called yet as I doubt they have my overseas number but I won't acknowledge any debt.

 

[Rob Legat - SBPL]

I wasn't asking if you had done anything to acknowledge the debt in the past - I was asking if you acknowledge the debt now. I think the answer is clearly: no.

Legally you are liable for the debt, as far as the contractual relationship between yourself and the bank is concerned. It was your negligence which allowed the money to be expended, albeit unintentional as you say. The bank honoured the transactions in good faith, and have suffered a loss for it. Rather than deal with the situation, you ignored it. While it may 'morally' be your ex-wife's debt: legally it is yours. You may have a claim against your ex-wife, but the bank does not.

I don't see any reason why you should be assisted in evading payment. Maybe the $40k is excessive, maybe it's not. However, as long as it is calculated in accordance with the fees and charges, and terms and conditions, which you agreed to when opening the account, then you have also impliedly accepted that that is the amount you owe.