wifes strife

[TAJC2003]

My Father in law gave my wife a credit card to use when she had our little boy back in 2001. She and i were both employed by him, she continued to use the card and ran up a debt of 11k, she was paying it back monthly then, in Aug 2006 following an arguement he made her redundant. she was unable to continue to make payments to him and now he is taking her to court for the money owed. He was fully aware that she was using the card for all those years, her name was not on the credit aggreement.
what are her options?

[Stu Dent]

I think this will come down to proof.

Since the credit agreement is between the creditor and the owner of the credit card, (your father in law), it is he who is responsible for repaying the credit card company.

However, it appears there is also an agreement between your wife and her father for she to pay he. You have not stated that the F.I.L intended to pay your wife's debt. On the contrary, you stated that 'she was paying it back monthly'. This implies there is an agreement that your wife repays your F.I.L.

But your F.I.L needs to prove that an agreement with your wife existed and, if he can show this (and I suspect he can otherwise he probably wouldn't be taking court action to implement payment), your wife needs to show that she made payments. If she did and he decided not to use this money to repay the credit card bill then your wife wins. If proof exists that an agreement existed but that no proof of any repayments from your wife to her father was made, she still owes him.

[pussnboots]

He was probably not aware that his daughter would run up debts to �11,000, Unfortunately as the card is in his name he is now liable, but I would hope that you could come to some agrrement and not leave your father in law up the creek without a paddle.

[JJ1969]

Why was your wife made redundant?.... There could be a case of constructive dismissal? Was your wife offered redundancy pay?

I am only thinking that, if your father terminated your employment for reasons that were purely personal, you could seek advice to make a claim.

As Stu Dent said..

If you wife had, until the 'redundancy' been making regular payments to her dad, and he had not paid the card, then she has a good case.

I would assume that the credit card bill went to the FIL's home, as the card was in his name. Therefore he cannot really say that he did not know how mush the debt was.

J

[JJ1969]

I meant to say, terminated HER employment!! sorry

[Stu Dent]

What I'm also saying though is that although the F.I.L owes the CC Co., the wife still owes her father - even if she was dismissed - fairly or otherwise. The apparent agreement to repay the 11k is probably not part of the employment remuneration package. How would we know this?

Well, apart from the terms and conditions that the employee must receive from the employer, the credit card statement will show the nature of the purchases made. If it's fuel for the company car, or other work expenses, that may indicate (in the absence of written proof), that the use of the card was a benefit in kind - very likely to be subject to income tax though!!! If it was used for food, holidays, train or cinema tickets, etc etc, it would show that the credit card was being used for purposes unrelated to her employment.

So my feeling is that both parties will have to pay their respective creditors.