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Credit Card Debt: Is my mom liable?

P

PeteyCPU

Senior member
Long story short, my parents are going through a divorce (actually my dad abandoned us and left the country and my mom is getting a divorce). He made over 100,000 in charges (spread across 10+ cards) to various accounts he had in his name only. However, one account somehow has my mom on it and she knows she has never had a discover card. She has never signed up for a card nor has she received any correspondence from them (it all comes in my dads name) We pulled her credit report and it shows 11,400 in outstanding debt on the card (it shows the same on his report). The card apparently has a limit of 11,000. She has ZERO other revolving debt.

What steps should my take to protect herself? Should she call discover and ask for proof of her being on the account whether it be signature or some other form? Can she ask for time to get things figured out? Note, she is in the process of getting a lawyer. Thank you in advance for any help given.

Cliffs:
1) Dad went nuts
2) Made over 100,000 in charges on personal accounts before fleeing the country
3) Mom is on one account unknow to her
4) That account is over limit and represents her only revolving debt
5) What does she do?
6) Thanks
 
which state are you in? It could be as much as half.

Originally posted by: PeteyCPU
Long story short, my parents are going through a divorce (actually my dad abandoned us and left the country and my mom is getting a divorce). He made over 100,000 in charges (spread across 10+ cards) to various accounts he had in his name only. However, one account somehow has my mom on it and she knows she has never had a discover card. She has never signed up for a card nor has she received any correspondence from them (it all comes in my dads name) We pulled her credit report and it shows 11,400 in outstanding debt on the card (it shows the same on his report). The card apparently has a limit of 11,000. She has ZERO other revolving debt.

What steps should my take to protect herself? Should she call discover and ask for proof of her being on the account whether it be signature or some other form? Can she ask for time to get things figured out? Note, she is in the process of getting a lawyer. Thank you in advance for any help given.

Cliffs:
1) Dad went nuts
2) Made over 100,000 in charges on personal accounts before fleeing the country
3) Mom is on one account unknow to her
4) That account is over limit and represents her only revolving debt
5) What does she do?
6) Thanks
Click to expand...

 
Yeah, thats what I figured, I was hoping maybe someone here had been through something similar, although that probably is a shot in the dark. Thanks.
 
Originally posted by: AnonymouseUser
Wow, this sounds very familiar to the situation on the Suze Orman show the other night night....
Click to expand...
Alrighty then. Please don't tell us about it or anything. :thumbsup:
 
Ask the CC company to show her where SHE actually signed up for a CC. If your dad signed for her, she is not responsible.
 
Originally posted by: SmoochyTX
Originally posted by: AnonymouseUser
Wow, this sounds very familiar to the situation on the Suze Orman show the other night night....
Click to expand...
Alrighty then. Please don't tell us about it or anything. :thumbsup:
Click to expand...

Uh, ok.

Woman calls in, says her husband skipped the country (on a boat) after racking up thousands of dollars of debt on credit cards. He left his wife and child behind to fend for themselves. One or two cards she was a joint user and aware of but not aware he was using them. Another she had no idea about. Wanted to know if she was liable for it.

Suze said get a lawyer.

Like I said, sounds familiar.
 
Originally posted by: AnonymouseUser
Originally posted by: SmoochyTX
Originally posted by: AnonymouseUser
Wow, this sounds very familiar to the situation on the Suze Orman show the other night night....
Click to expand...
Alrighty then. Please don't tell us about it or anything. :thumbsup:
Click to expand...

Uh, ok.

Woman calls in, says her husband skipped the country (on a boat) after racking up thousands of dollars of debt on credit cards. He left his wife and child behind to fend for themselves. One or two cards she was a joint user and aware of but not aware he was using them. Another she had no idea about. Wanted to know if she was liable for it.

Suze said get a lawyer.

Like I said, sounds familiar.
Click to expand...

you stupid douchebag! what did suze orman say???
 
Originally posted by: Ameesh
Originally posted by: AnonymouseUser
Originally posted by: SmoochyTX
Originally posted by: AnonymouseUser
Wow, this sounds very familiar to the situation on the Suze Orman show the other night night....
Click to expand...
Alrighty then. Please don't tell us about it or anything. :thumbsup:
Click to expand...

Uh, ok.

Woman calls in, says her husband skipped the country (on a boat) after racking up thousands of dollars of debt on credit cards. He left his wife and child behind to fend for themselves. One or two cards she was a joint user and aware of but not aware he was using them. Another she had no idea about. Wanted to know if she was liable for it.

Suze said get a lawyer.

Like I said, sounds familiar.
Click to expand...

you stupid douchebag! what did suze orman say???
Click to expand...

Hah, I edited it before your reply.
 
if your mom did not sign anything... how can she be responsible? I don't think that can happen... but i wonder what the laws are concerning spousal debt.
 
the real question is why did your dad flip out and why cant they just get him from wherever he went and prosecute? that is annoying that you can just flee the country and not have any obligation to your mistakes here.
 
Tell you mom not to talk to the credit card company. If she makes one payment, then she will be acknowledging the debt. They will tell her all sorts of lies to try to get her to make that one payment and she will be sunk then.

She needs a lawyer fast.
 
I went through this with my ex-husband. She's liable, until she gets a judge to say that fraud was committed.

However, by the time you get a judge to say this, and get the credit card companies to acknowledge it, fees/penalties/charges will have built up to amazingly high amounts. This is a real mess.

Do not talk to the credit card companies, they lie.

She needs to get a lawyer WHO KNOWS ABOUT CREDIT FRAUD. A lot of lawyers say they know, but they don't. Trust me grrrrr.

Then, she gets to file a police report about the theft. Because that's what it is.

Then, armed with the police info, her lawyer will guide her throught the maze of getting the charges removed.

This is NOT for beginners to accomplish.

Warning, the legal work required was expensive. There were times when I thought it would be cheaper to just pay the damned bills myself.

Also, her credit will probably be trashed anyway.

I hate the credit card industry.
 
Update: She's only an "Authorized User" and NOT a Joint Owner which means she isnt liable at all. She does need to contest the error on her credit report with all 3 companies and with discover though.
 
Originally posted by: PeteyCPU
Update: She's only an "Authorized User" and NOT a Joint Owner which means she isnt liable at all. She does need to contest the error on her credit report with all 3 companies and with discover though.
Click to expand...
Who says that, the credit card company or the lawyer? Does she have it in writing? I hope you're right, I wish her luck.
 
It says it straight up on her report. Also, this is what the FTC says about it:

Account "Users"
If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse's name as well as in your's (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user.

Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you - not they - are contractually liable for paying the debt.

 
Originally posted by: PeteyCPU
It says it straight up on her report. Also, this is what the FTC says about it:

Account "Users"
If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse's name as well as in your's (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user.

Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you - not they - are contractually liable for paying the debt.
Click to expand...

Sounds like case is closed to me... pretty cut and dry.

Make sure you kick your Dad square in the balls next time you see him.
 
Originally posted by: jbourne77
Originally posted by: PeteyCPU
It says it straight up on her report. Also, this is what the FTC says about it:

Account "Users"
If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse's name as well as in your's (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user.

Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you - not they - are contractually liable for paying the debt.
Click to expand...

Sounds like case is closed to me... pretty cut and dry.

Make sure you kick your Dad square in the balls next time you see him.
Click to expand...

Will do, that is if he ever comes back...
 
I'm willing to bet that, as you get older, he will start having severe regrets. I've seen this a few times with friends, girls I've dated, and especially my wife. These are people whose fathers were hideous excuses for human beings, much less parents. As their child grew older, they felt a deep sense of guilt. In my wife's case, her Dad woke up one day and just decided that he wanted everything to be like he had been the perfect fathre all along, and when she rejected this notion, he was enraged.

Each story is as unique as its own circumstances, but one thing remains 99% constant: you'll hear from this guy eventually.
 
Originally posted by: KarenMarie
if your mom did not sign anything... how can she be responsible? I don't think that can happen... but i wonder what the laws are concerning spousal debt.
Click to expand...
You are correct. If YOU don't sign for something, then YOU are not responsible. Period.

Nobody....your spouse, GF, BF, can sign YOU up for credit legally, at least not without you having given them a power of attorney to sign for them.

I see you found out she was only an authorized user. That means nothing to her, legally. The CC company might call and give her a hard time, but they can't legally do anything to her.
I foresee a PITA coming in dealing with this, but your mom should come out just fine.

 
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