Credit card used without approval

Press, 6 March 1978, Page 4

Credit card used without approval

A man incurred debts of ($l4OO from three branches of the Farmers’ Co-operative Association in Christchurch last year, using a credit card issued by James Shand, Ltd, a subsdiary of the Farmers’,! but without first gaining ap-' proval from the Farmers’? credit manager.

Thomas Lionel Henry Biehler. who was adjudged bankrupt on January 30, told a meeting of his creditors that he received a pamphlet from James Shand in the mail, advertising liquor supplies. He telephoned the firm, which accepted an order and sent him $6O worth of liquor, which he shared with relatives over Christmas. He also received a credit card. An accompanying letter he used at the Farmers’, said Mr Biehler. He said that he went to the Riccarton Mall branch of the Farmers’ and bought clothing, groceries, and other goods, using the card to obtain credit. He then went to the Farmers’ store in Cashel Street where he obtained two watches, tools, clothing, and baby clothing. The next day, a Saturday, he went to the New Brighton branch of the Farmers’ and obtained linen, a pushchair, and clothes on credit. Questioned by Mr K. J. W. Derby, acting on behalf of

the Official Assignee, about the use of the credit card. Mr Biehler said that he had told James Shand that he would send it a cheque through the Canterbury Savings Bank each week. At the time, he was working, he said. Mr Biehler said that he had approached the Farmers’ head office and was told it w'as a monthly account. He was told that he would have to pay cash. When it was put to him by a representative of the Farmers’ that he had been told at the Riccarton branch that his account w’as closed and that he had charged up $lOOO worth of goods at the New Brighton branch the next day. Mr Biehler said that he had “not got round to saying how much I got from Brighton.” He denied having been told by the Riccarton branch that his account was closed. The bankrupt’s statement of affairs showed liabilities of $2838, to 15 unsecured creditors, assets of $lOO, being tools seized by the Official Assignee on the date of adjudication of bankruptcy, leaving a deficiency of $2738. Mr Biehler said that the cause of his bankruptcy was unemployment because of illness. Mr Derby told creditors that there was little possibility of a dividend’s being payable.