07-17-07 A-5403-05T5
In this non-jury matter, the trial judge held defendant
liable for a credit card debt despite his contention that he
never applied for or used the credit card. On appeal, the court
concluded that the credible evidence supported the trial judge's
determination that defendant either expressly applied for the
card, or authorized his roommate -- to whom he ceded authority
over his finances -- to apply for and use the card. The court
held that the consequence of any misuse or fraudulent use by the
roommate was to be borne by defendant, and not the credit card
issuer.
The court also rejected defendant's argument that plaintiff
or its assignor had failed to comply with the Truth in Lending
Act, 15 U.S.C.A. §§ 1601 to 1667, because that Act was designed
to protect credit cardholders from unauthorized use, and because
a cardholder's failure to examine credit card statements that
would reveal fraudulent use of the card constitutes a negligent
omission that creates apparent authority for charges that would
otherwise be considered unauthorized.
