What do you call a secondary account holder?

Authorized users are called secondary account holders. These people may have access to certain parts or all of an account as outlined by the primary account holder such as signing authority.

What happens when a co signer stops making payments?

If the primary signer stops making payments or falls behind, you can also request a co-signer release. This is a form that the primary borrower will need to sign off on, releasing you from the obligations of the loan.

Can a cosigner of a loan Sue the borrower?

You are responsible for making the payments to the lender. If the lender sues you, you can file a lawsuit (called a cross-complaint) against the borrower. However, you are still responsible for paying the debt. You could also file a lawsuit against the borrower for the payments you have made so far.

Who is an additional cardholder to a primary account holder?

An additional cardholder is an authorized secondary user added to an account by the primary cardholder. There are benefits to an additional cardholder, but also risks to the primary account holder. Learn more about a joint account, a bank or brokerage account that is shared between two or more individuals.

Can a secondary holder withdraw money from a bank account?

This is especially true for business accounts where a secondary holder may be able to make deposits at the bank but may not be able to withdraw money from the account. In most cases, the secondary account holder has no legal responsibility for the account. This means the institution cannot go after this person in the event of any fraud or problems.

Can a shareholder be held liable for a business debt?

However, shareholders may also be held liable if a creditor can prove corporate formalities weren’t followed, shareholders commingled personal, and business funds or the corporation was just a shell designed to shield liability. This is called piercing the corporate veil.

Can a co-owner remove a secondary signer from a joint account?

Unlike a joint checking account with co-owners, the owner of an account with a secondary signer can remove the signer from the account at any time. Obviously, this puts you, the secondary signer, at great risk if you are depositing your money into the account. You cannot access the account or your money once you are no longer an authorized signer.