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What do I do if a family member abused my credit?


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What actions can I take to try to correct a situation where I granted access to my credit card accounts to a family member who completely abused my credit. I was led to believe that everything was ok, and being handled in a timely manner. That is until I tried to get financed to buy a new car. What can I do? Is my credit irreparably damaged? :(

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First off - How far do you want to take this?

Did you have a written or verbal agreement w/ this family memeber on their responsibility for paying your account.

Technically it all comes back to you owing, since you are the account holder. Did you add this person as an authorized user, or did just let this person use your credit card straight out.

This may leave you the only choice of sueing this person - would definately talk to a lawyer.

Get their advice on treating this as an id theft case - and go that route. Just not sure - all depends on how you set up agreement w/ this person.

Will try to help if you post additional information though.

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It wasn't an ID theft situation. I knew this person was using my accounts and I gave them authorization. But we did have an agreement for the payment of the accounts and I talked to her yesterday and she does agree that the agreement was made and that she did not hold her end of the agreement. In fact, now the entire family knows about the situation. I simply don't know what to do.

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Also, maybe I should point out that at the time this all began I was a freshman in college and was able to get the cards at the sign-up tables, and I wasn't really aware of how all of this would effect me in the long run. (I know ignorance is no defense against the law).

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Well - if she acknowledges her mistake and will be paying you back that leave you still stuck with the reporting on this account.

Are you able to pay the creditor & deal later with her on the finances?

Might try calling your creditor and asking them for their understanding in the matter, to remove the negative information in exchange for payment.

Really don't know more than this, you are in a pretty tight spot at this point.

May just dispute with the CRAs and hope for deletion, but this is no guarentee since the account is active now. But you might try this way.

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<blockquote>Originally posted by Azucar

So, do you think if I were to simply sue her and get a judgement in my favor that this would not make a difference for me and my credit rating?

Unfortunately I don't think so - you would only be being compensated by the courts for damage and the actual amount; but I could just imagine hearing the judge say something of the sort: that it was still your reponsibility to check on your account status personally yourself to make sure the entire time everything was being paid as agreed - like duplicate billing.

You would have no grounds to sue the creditor for updating either, since it is your account in your name and you never had her added as an authorized user - so they knew nothing about an additional person charging to be able to help you.

The only out I could even see would be to claim ID Theft, and claim no knowledge that the account had been used. But this would include filing a police report and filing charges against her - which I am positive would not work. She is sure to put up one hell of a fight (pointing out that you gave her access to the account). So you might just back yourself into a corner that way.

Should really speak to a lawyer about your options - there may be some other side to go at this that is unforeseeable from this side of things.

</blockquote>

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This is one of those situations where you're going to have to pay. Creditors hear about this sort of thing often and so long as you were of legal age when you obtained the card and gave authorization to use, you would be the responsible party. The creditor may be willing to suspend or lower the interest rate and forgive certain fees for a good-faith effort to resolve the problem. And also, as a remedy of last resort, a bankruptcy declaration.

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