Unfortunately, family members putting utilities, credit cards, and even loans in their children’s names is not uncommon. Oftentimes, the children never find out about the offense until years later.
If you are trapped in this tangled web, the first thing you need to do is contact the creditors “you†owe, says Sonya Smith-Valentine, a lawyer who specializes in identity theft and credit fraud. Smith-Valentine represented a client who went through a situation similar to Jon’s. He was able to show the companies his birth certificate, proving that he was a minor when the transactions occurred, showing that he could not have possibly made the purchases.
Smith-Valentine stresses the importance of writing the creditors and not just calling. If you know a family member made the purchases, detail this information and include a copy of your birth certificate to clearly show that you were a minor during the transactions in question, and also point out your minor status in the letter. You should also send a copy of the letter to all the credit reporting agencies–Experian, Equifax and Transunion. Smith-Valentine also recommends that you keep copies of all the letters you send, and that you send them via certified mail.
If the initial letter and phone call to customer service yield no results, go to the top. “Spend a little time doing a quick Google search to find the office of the president,†says Smith-Valentine. Send another letter–via certified mail–and include a copy of the initial letter you sent to customer service. If you can, include even more information about the problem you are trying to resolve. “Go to the boss, the head boss. It cuts down on time and some of the frustration,†adds Smith-Valentine. “When you start at the top, they can fix it.â€
Third, figure out which federal agency regulates the financial institution/creditor that is holding you responsible for repayment. If it’s a bank, chances are it is regulated by the Office of the Comptroller of the Currency
Identity theft isn’t always committed by some unknown thief. Unfortunately, it is sometimes committed by a trusted brother, sister, mom, or dad–someone who has access to your social security number and personal information. If you discover that this is the case, cut off the line of credit immediately. Often, when this type of offense is committed by a family member, we allow them to placate us with “I’m going to pay you back†or “Don’t worry about it, it’s going to be paid off.†But you must be proactive and salvage what you can of your credit before it gets any further out of hand–family or not.
If this has happened to you, you’re going to need to file a police report and fill out affidavits to help prove to creditors that you did not rack up the charges, says Smith-Valentine. How to prove your innocence is a case-by-case basis. “If you were in school and the charges were made in a different state, show it. Provide your class schedule and other information to prove that you were out of state attending school,†says Smith-Valentine.
When you file a police
report and identity theft affidavit, understand what it means. “You’re going to have to say you’re willing to assist in the prosecution of the family member,†says Smith-Valentine. While the likelihood of prosecution is very slim, says Smith-Valentine–she has only experienced one instance in her 12 years practice–it’s still a possibility. “If you’re not willing to prosecute, the creditors are going to think you were involved.â€At what point do you seek legal representation?
If you’ve written the creditor, called their customer service department, and contacted the company’s headquarters and little to nothing has been done, it may be time for you to seek legal counsel. Smith-Valentine says that if it comes to this point, you’re usually suing the credit card company and not your relative.
“The way the laws are set up, they’re geared toward the company that was sending the wrong information,†explains Smith-Valentine. If you notified the company that you were not making the purchases, they should then go after the person who was making the purchases, according to the Fair Credit and Reporting Act. This gives a lawyer grounds to sue the creditors on your behalf.â€
At what point should you consider suing your relative?
The hardest part about an ordeal like this is coming to terms with the fact that someone close to and trusted by you would betray you.
What about laws?
Sadly, it looks like children may continue to fall victim to this type of identity theft. “The problem is, a company runs a person’s social security number and it comes back clean. I don’t know if they’re looking to see, based on the birth date, if that person is 18 or older. That’s why, with cell phones and utilities, [committing this type of identity theft] is a lot easier. There is no law saying a person has to be of a certain age to open an account.â€
Remember, when dealing with this matter, time is of the essence–act with urgency. This can be especially difficult because you are dealing with a loved one, but get a grip and create a plan. The longer you wait, the harder it will be to untangle the mess.