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My wife's sister has been using her SSN to apply for credit! What steps do we need to take to fix this?


sonystylez
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This is a big bummer of a situation.

 

The reality is that the apps WERE fraudulent, regardless of intent, because the person applying misrepresented themselves. So there is no clear path forward because no matter what you do, you wind up exposing the sister to risk, and indeed your wife is exposed to risk as well. The only real way to get rid of the debt is to report it as identity theft. But that will most likely have very begative consequences for the sister, up to getting charged with a crime and getting jailed. And the sister could always claim that her sister allowed her to do it, which then implicates your wife in credit card fraud. If you call the card companies and report that this was all a big mistake, they :

 

A - have no reason to do thing one, since to them it is not a lot different from having made her sister an AU, in which case you would be responsible for the debts anyway, and

B - might just elect to close the cards since your wife basically helped her sister commit credit card fraud.

 

I don't see any way out of this debt other than to pay it, discharge it through a BR, or default on it and hope for the best. All three have negative consequences, but of them, the first option is the one with the fewest of them.

 

It goes without saying that this was a gigantic mistake. But for future reference, it would have been much better for your wife to make your sister an AU on her cards rather than do this, because she would have been able to monitor all of this activity and put a stop to it the moment it got out of hand. As it is, she's allowed her sister to trash her credit, put her in debt, and has created a situation with basically no tenable solution other than to pay the debt.

 

That stinks - I wish I could tell you a different answer.

 

 

Thank you for your empathy. And I totally agree with you. If my wife wanted to help her sister, there could have been better ways to do it. To put it lightly, I am obviously NOT happy with this situation and I have expressed it to all parties involved, but my purpose for posting this thread is to gather information how hot to fix the situation.

 

Ok, so What steps do we need to take to fix this?

 

1. Currently we are going to contact Trans/EQ/EXP to update to our addresss.

2. We are also going to ask for all of my wife's credit cards back

3. We are going to update all credit card information back to my wife (Chase/Citi/CapitalOne, etc)

 

What other steps do we need to take to fix this situation?

How do we update the credit reports to show my wife's employment instead of my wife's sister?

Anything else we need to do?

 

 

The only thing I would add to this is this: If the sister doesn't want to give the cards back... update the addresses on file, and then report all the cards as lost. They will issue new cards, send them to the correct address, and deactivate the cards in the sister's possession.

 

Who's been paying these? Who has them registered online? You'll have to address getting charge of those account portals too.

 

 

Yep, as long as the sister cooperates that works. If not she may have no choice other than call, close the accounts, and follow up with a letter. Sounds like the sister is cooperating.

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No miracles.

 

Only 3 options: 1/Paying, 2/Defaulting, 3/BK.

 

Try option one.

 

Freeze everything.

 

Cut all the cards.

 

Slowly but surely take three years or more to pay.

 

The Credit Cards' gods will reward your wife and punish her sister.

 

If this doesn't work default & BK

 

Good luck & above all Peace in the family.

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I recall somewhere (not sure what forum) that through an attorney and cooperation of the bank you could take the liability away from the good sister and place it on the bad sister. however $35 is quite alot of money, bad sister would have to have credit/assest for the transfer of liability.

 

File a police report? well that gives the sister a Felony (most likely) plus $5K in attorney fees. Did you even say what type of income bad sister has? It's in her best interest to pay this off in 3 years time. shouldn't be that difficult.

 

Good Luck. Some bad blood brewing there.

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I posted in the OP other thread. The wife gave permission so this is not ID theft, this is flat out FRAUD!

 

The OP's wife and sister in law BOTH committed bank fraud. There's nothing that can be done that doesn't end up bad for both of them. OP is in a real mess.

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My wife's sister has been using her SSN to apply for credit cards. She has applied for over 10+ credit cards for the last 2+ years, using my wfie's SSN and Name. Most of them are maxed out. She has over 35K of credit card debt under my wfie's credit.

 

 

How do we get rid of this debt?

 

1. What are our options?

2. If we contact her creditors (Chase, Citi, etc), and told them of our situation, what would they do?

3. Would they work with us and help us? What can they do to help us?

4. Or would it backfire? (Close our accounts, etc)

5. Would they allow to transfer the accounts to my wife's sister?

 

 

Would really appreciate any help/feedback. Many Thanks

 

 

PS My wife gave her permission that I was not aware of until recently. But that's another story, so let's just focus on how to get rid of this debt if we can:

 

1. You should contact an attorney.

 

2. They would probably push to have your sister-in-law and her co-conspirator, your wife, each charged with 10 counts of felony bank fraud.

 

3. They would help the police show your wife and her sister the way to the nearest federal prison.

 

4. I think them closing your accounts is the least of your worries. See number 3.

 

5. Before or after her 10 year prison stint? Please see number 1.

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Divorce your wife, because this is stupid.

 

 

 

What are your real options? Start Paying. If your wife gave your sister permission to access her SS for the purpose of obtaining false credit... They are both in it for fraud.

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I've seen BK mentioned a couple of times as a possible solution. Wouldn't the entire fraudulent nature of this matter likely come to light during the BK proceedings?
If so, wouldn't a discharge be denied on the basis of fraud?

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this isn't fraud.

 

there's nothing fraudulent having someone to open credit cards for you with your knowledge,

 

and allowing them to charge on them.

 

I do it all the time for my wife.

 

at the same time, since she allowed the sister to do this,

 

she's on the hook for the debt.

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this isn't fraud.

 

there's nothing fraudulent having someone to open credit cards for you with your knowledge,

 

and allowing them to charge on them.

 

I do it all the time for my wife.

 

at the same time, since she allowed the sister to do this,

 

she's on the hook for the debt.

I assume your wife's applications gave her own name and SSN, not yours or someone else's, correct? IOW, she was not misrepresenting who she was/is. This is not true of the situation that the OP describes. I agree with others that this is fraud against the issuers of the cards.

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this isn't fraud.

 

there's nothing fraudulent having someone to open credit cards for you with your knowledge,

 

and allowing them to charge on them.

 

I do it all the time for my wife.

 

at the same time, since she allowed the sister to do this,

 

she's on the hook for the debt.

I disagree. When you sign that application whether in person or online you are saying / agreeing you are that person.

 

 

 

Sent from my iPhone using Tapatalk

Edited by nyrfann
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this isn't fraud.

 

there's nothing fraudulent having someone to open credit cards for you with your knowledge,

 

and allowing them to charge on them.

 

I do it all the time for my wife.

 

at the same time, since she allowed the sister to do this,

 

she's on the hook for the debt.

I disagree. When you sign that application whether in person or online you are saying / agreeing you are that person.

 

 

 

Sent from my iPhone using Tapatalk

 

 

I agree with shifter. The sister is operating as an agent for the wife when she opens and uses a credit card in the wife's name. It's called power of attorney. The sister operates as an agent of the wife. To protect herself the sister should have it in writing. Standard language in T&Cs states you are responsible for debts from your use of a CC or anyone else you allow to use it. A court would interpret it the same way, not as fraud. It becomes fraud if the wife disavows authorizing the card's use and the fraudster would be the wife. She obviously wasn't paying attention to what her sister was doing. The wife has a claim against her sister but the CC issuers will hold the wife liable because she authorized the extension of credit and allowed the sister to use said credit.

Edited by cashnocredit
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this isn't fraud.

 

there's nothing fraudulent having someone to open credit cards for you with your knowledge,

 

and allowing them to charge on them.

 

I do it all the time for my wife.

 

at the same time, since she allowed the sister to do this,

 

she's on the hook for the debt.

I disagree. When you sign that application whether in person or online you are saying / agreeing you are that person.

 

 

 

Sent from my iPhone using Tapatalk

 

 

I agree with shifter. The sister is operating as an agent for the wife when she opens and uses a credit card in the wife's name. It's called power of attorney. The sister operates as an agent of the wife. To protect herself the sister should have it in writing. Standard language in T&Cs states you are responsible for debts from your use of a CC or anyone else you allow to use it. A court would interpret it the same way, not as fraud. It becomes fraud if the wife disavows authorizing the card's use and the fraudster would be the wife. She obviously wasn't paying attention to what her sister was doing. The wife has a claim against her sister but the CC issuers will hold the wife liable because she authorized the extension of credit and allowed the sister to use said credit.

 

I'm no attorney so maybe you guys are right but it just seems like fraud to me. Either way this is one of the more bone head things I've seen, the OP and his wife are in deep and the only way out is to help pay the debt or go BK. I don't see how legal action against the sister would even be an option since she let her do it.

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this isn't fraud.

 

there's nothing fraudulent having someone to open credit cards for you with your knowledge,

 

and allowing them to charge on them.

 

I do it all the time for my wife.

 

at the same time, since she allowed the sister to do this,

 

she's on the hook for the debt.

I disagree. When you sign that application whether in person or online you are saying / agreeing you are that person.

 

 

 

Sent from my iPhone using Tapatalk

 

 

I agree with shifter. The sister is operating as an agent for the wife when she opens and uses a credit card in the wife's name. It's called power of attorney. The sister operates as an agent of the wife. To protect herself the sister should have it in writing. Standard language in T&Cs states you are responsible for debts from your use of a CC or anyone else you allow to use it. A court would interpret it the same way, not as fraud. It becomes fraud if the wife disavows authorizing the card's use and the fraudster would be the wife. She obviously wasn't paying attention to what her sister was doing. The wife has a claim against her sister but the CC issuers will hold the wife liable because she authorized the extension of credit and allowed the sister to use said credit.

 

I'm no attorney so maybe you guys are right but it just seems like fraud to me. Either way this is one of the more bone head things I've seen, the OP and his wife are in deep and the only way out is to help pay the debt or go BK. I don't see how legal action against the sister would even be an option since she let her do it.

 

 

No doubt about that!

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It is probably a violation of the CC issuers T&C's to allow someone to use your SSN and other info to open an account, or to use someone else's info.

 

From a criminal standpoint, it is probably not fraud at this point. The second that someone tries to claim the debt isn't theirs, file an ID theft report, file for BK or anything else, I believe it would become fraud of the worst type - conspiracy to commit.

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gave her own name and SSN, not yours or someone else's, correct?

That's exactly what the OP said.

 

He said the sister used his wife's name and SSN with her permission.

 

"...with her permission." That is not good enough, IMO.

 

The fact that the wife gave "permission" to the sister is not the issue as I see it; rather it's possible fraud IMHO against the issuers of the cards as they were not a party to this "agreement" and had no knowledge of the situation. My question is, would the issuers of these cards, made aware at some later time, be perfectly fine with what had transpired? Don't they have some kind of third-party interest in this entire matter, aside from the debts being paid? For openers, the credit history and FICO scores of the principal user of the cards was not obtained. Would they, hypothetically, be okay with that? I realize these are academic issues at this point, but just as argument, I'd like to know how they would see the situation, payment of debt aside.

 

I do agree that just paying all amounts outstanding is the best course of action and any issues of possible fraud discussed here would likely not see the light of day.

 

I see Cash's response re POA. I don't know enough (IANAL) for certain to say whether or not such a document, not written and drawn up before this entire scenario unfolded, and without the knowledge of the CC issuers, would be a complete defense to allegations of fraud, should this issue be raised. Interesting point. I do agree the wife is liable for payment of the debt.

 

 

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1/) Did wife authorize all ten cards or give her SS number for a one time use/ one card

2.) did sister fully inform wife of liabilities incurred

3.) what are sister's assets, if any, and earnings?

4.) can anything be returned like a car?

5/) did sister defraud wife as to her complete actions?

 

does sister have a substance abuse problem or a criminal background?

 

I allowed someone to use my card once over the phone and he ran up $5K in charges using numbers, he never had the card.

 

I doublt that wife knew the extent of her sister's allowed use of her credit/ That IS fraud against the wife. JMO..

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1/) Did wife authorize all ten cards or give her SS number for a one time use/ one card Wouldn't surprise me if she just said to go ahead and open CCs in her name just so long as she paid them. Anyone that would do that in the first place is probably not going to put conditions on it and just expects her sister to be prudent. This sort of thing is very common in elder abuse cases and caregivers and that is almost always surreptitious and straight fraud.

2.) did sister fully inform wife of liabilities incurred No chance based on the wife's reaction to the 35k debt.

3.) what are sister's assets, if any, and earnings?

4.) can anything be returned like a car?

5/) did sister defraud wife as to her complete actions? Looks and walks like a duck.

 

does sister have a substance abuse problem or a criminal background? Check for cash advances.

 

I allowed someone to use my card once over the phone and he ran up $5K in charges using numbers, he never had the card. Softy!

 

I doublt that wife knew the extent of her sister's allowed use of her credit/ That IS fraud against the wife. JMO.. I agree. Wife has a cause of action against the sister. Doubtful DA would charge as criminal fraud because of the permission aspect but it should be an easy civil case since an agent is supposed to operate for the benefit of the principal.

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this isn't fraud.

 

there's nothing fraudulent having someone to open credit cards for you with your knowledge,

 

and allowing them to charge on them.

 

I do it all the time for my wife.

 

at the same time, since she allowed the sister to do this,

 

she's on the hook for the debt.

This.

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The last post in this topic was posted 2637 days ago. 

 

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