Bank Had No Duty To Advise Business Charge Card Owner That Bank Had Obtained Judgment Against A Person Who Was Authorized To Use The Card
Question: Does a bank that enters into an agreement with a company to issue a business charge card have a duty to disclose to the card owner, before issuing a card to another person authorized to use the card, that the bank's affiliate had previously obtained a default judgment against that person for not paying his own charge card bill?
Answer: No, according to the Second District Court of Appeal in American Express Bank, FSB v. Kayatta, No. B223686 (decided Nov. 29, 2010).
