If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

Three months ago, i loaned $2,000 to a friend. He gave me his brand new $1500.00 television as collateral until he could repay me. A few weeks after the loan, he gave me his credit card to use online for me to pay off a bill that totaled $2,000. Since his loan was now repaid to me, i gave him back his television. Today I received notice that he notified the credit card company that the charge was fraudulent and the credit card company reversed the charge. Now i%26#039;m stuck with the $2,000 debt again and no television as collateral. Do i have any rights since he used the card to pay my bill but then lied to the credit card company and reversed the charge?

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

You need to look at this question in 2 parts to determine a satisfactory answer.

First of all is the loan of $2,000 between yourself and your friend. This constutes a contract and is therefore able to be sued upon like any other contract plus any damages and interest. This would be a matter, should you persue it, of the small claims court.

Giving you a television could be seen as consideration for the price of the contract. It was collateral for the loan until it was repaid. However, because this has not happened and he has in effect defaulted then the goods have probably not become ascertained and title has passed to you.

This is a similar situation to when someone %26quot;pawns%26quot; an item at a brokers and fails to reclaim it within time - the goods become vested in the recipient. You may obtain the goods under the contract as it seems they were part of the contract itself.

Example:

I give someone my Rolex watch as collateral on the agreement that I shall give them back the 鎷?,000 they gave me. I agree also to give them the money back in 3 weeks. This is a contract that is conditional. The condition being that the money is repaid in the stipulated time period.

Even if no express agreements exists between the parties the courts will infer in your circumstances the conduct of the parties. The simple act of pledging an item as value would be sufficient.

If the credit card you used to pay online was done so with their express permission then the credit card holder cannot claim a fraudulent transaction occured. For example, I go into a shop with my girlfriend and buy her an item of clothing. If this is a legitimate purchase on her behalf then how can I claim fraud?

Further considerations arise:

If you are in the UK there is something in contract known as %26quot;privity of contract%26quot;. Only the parties to the contract can legally enforce its provisions - TWEDDLE v ATKINSON.

When you decided to use the card to make payment who was the contracting parties? Was it your friend by using his credit card or you? It could be seen as a contract made jointly.

There is some old English legislation what is known as the Statue of Frauds (1766?) which concerns if I recall contracts where another party acts as a guarantor. Eg: A makes a contract and B agrees to pay it.

The easist route to take I feel would be to sue under contract. This is clear because you loaned $2,000 and it was to be repaid. There is nothing that is not clear cut unless you lack sufficient evidence.

You need to consider:

1. How was the contract made - verbally or in writing? Verbals contracts are harder to prove. However, due to the fact a credit card payment had been made, although later reversed, gives evidence of some agreement or consensus between the parties as we don%26#039;t usually pay for things for other people without a reason!

2. Do you have any witnesses if it went to court who could give evidence? You may have problems if it is your word against his.

3. If you sue and the defendant files a defence claiming they don%26#039;t know about the money or what the claim is for if you have sufficient evidence enter what is known as %26quot;summary judgment%26quot; and have it dealt with before getting to court. This is where a debtor files a worthless or spurious defence as a delay tactic.

Good luck!

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

You%26#039;d have to sue him in small claims court. His payment on your account is evidence of the loan.

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

Unfortunately, you are left holding the bag.

Your only recourse is small claims court. It is not a criminal matter because you became involved in an agreement with your friend and therefore theft won%26#039;t apply any longer.

Sorry.

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

Man....that%26#039;s messed up. I wish I knew.

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

Yes, you loaned him $2,000 and he has not paid you back. File a suit in small claims court. Sounds like you have some trail to back you up.

A signed promisory note would be much stronger evidence though.

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

He is liable but I think the easiest avenue would be small claims court against him. There is still an outstanding loan debt. As far as your bill, pay it ASAP! Tell the bill collector the situation, usually they are understanding and will work with you if you honor the arrangement.

Small Claims is usually cheap to file, $20.00, and pay off the arrangement with the bill collector when you collect. In the meantime, keep up your arrangement with the bill. Also, KEEP ALL RELATED documents.

If you can, try to get him to admit the debt either through email, messaging, etc. Keep a copy of the log as evidence. Even if he only apologizes, he recognizes the debt in writing!

I agree with the first comment, keep a copy of the credit card notice since it shows further evidence of the loan!

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

wow. some friend. you gotta take him to court.

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

Yes, you have enough prima facie evbidence here to take him to court.

He could deny the loan and say he was just doing you a favour. Did you get anything on paper? we only have your say that he gave you the TV. However, a court might believe you. Get bank statements etc.

If a friend uses their credit card to pay my bill, then reversed the charge, is my friend liable?

Call Judge Judy!!!