If you are a principal of an LLC, can the managing member legally take out a credit card with you as the primary holder of the card and use it without your consent?
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If you are a principal of an LLC, can the managing member legally take out a credit card with you as the primary holder of the card and use it without your consent?
Asked on December 18, 2011 under Business Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Regardless of whether or not you are the principal of a limited liability company, a managing member of this entity cannot apply for a credit card in your name without your consent and then use the card.
The problem is that you could be ultimately responsible for the debt on this credit card. I would first have a meeting with the person who took out the credit card in your name and reach an understanding that the credit card account will be closed, the debt paid off and the credit card destroyed. I would then call the credit card company to confirm this and then send a written letter to the credit card company memorializing the conversation and advising its representative that the application for the credit card was done without your authorization.
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