Credit fraud

[T0052SC]

I have just finished my divorce and now am trying to rebuild my life. I went to pull my credit reports to make sure that the ex was not tied to them any more and found four accounts that I had no idea about. I also found that they had my current address as the ex's address which I never lived there and my former address where I currently live.

I researched the accounts by calling the creditors and two of them took me off immediatly and told me to tell the credit agentcy to call to verify, the other two would not do a thing. All these accounts my ex opened in my name but her address and charged them up to max and let a credit collection agency close them. It has destroyed my credit.

I talked to my bank on what to do they told me to call the credit agencys and open an investigation of fraud because I never signed applications, receipts, or knew of the accounts. I have called the three major credit agencies and opened an investigation on the two accounts as fraud.

Now my questions;
What will happen now?
If they find these as fraud what will happen?
If they find these as fraud what will happen to the ex?

[socrateaser]

>I have just finished my divorce and now am trying to rebuild
>my life. I went to pull my credit reports to make sure that
>the ex was not tied to them any more and found four accounts
>that I had no idea about. I also found that they had my
>current address as the ex's address which I never lived there
>and my former address where I currently live.
>
>I researched the accounts by calling the creditors and two of
>them took me off immediatly and told me to tell the credit
>agentcy to call to verify, the other two would not do a thing.
>All these accounts my ex opened in my name but her address and
>charged them up to max and let a credit collection agency
>close them. It has destroyed my credit.
>
>I talked to my bank on what to do they told me to call the
>credit agencys and open an investigation of fraud because I
>never signed applications, receipts, or knew of the accounts.
>I have called the three major credit agencies and opened an
>investigation on the two accounts as fraud.
>
>Now my questions;
>What will happen now?
>If they find these as fraud what will happen?
>If they find these as fraud what will happen to the ex?

The Credit Reporting Agencies (Transunion, Equifax, and Experian; aka CRAs), assuming you have contacted each individually, will begin an investigation. This usually means that they will contact the card issuer and ask if the debt is valid. If the card issuer says yes, then that will be the end of the investigation and you will be SOL (the law in this area is as weak as a used tea bag).

Your argument is with the card issuing bank, not the CRAs. You should be sending them a written statement that the account and all charges against it is unauthorized.

Now, if your ex opened these accounts while you were still married, then depending upon the law of the jurisdiction, you may be stuck with the bill. If not, then the accounts are fraudulent, and the banks should  clear your credit.

If they don't, then you must sue the banks under the federal fair credit reporting act.

Dealing with the collection agenies is a waste of time, unless you want to pay them to let you off the hook. This will not clear your credit, however, unless you obtain a release, and if you're not an attorney, that will be very difficult to achieve.

The collection agencies just want money, they couldn't care less, generally, whether the debt is valid.

You can also contact the county sheriff and file a complaint. That way you will be on record as stating that someone is attempting to misappropriate your identity. However, unless the amount in dispute is more than around $25,000, it's unlikely that the district attorney will be interested in prosecuting the case. Lots of white collar crime goes unpunished for lack of sufficient law enforcement resources (the law is too busy trying to find druggies and prostitutes to bother with a little thing like your credit card -- kidding -- I can relate).

[I cry_ in_the_dark]

A bankruptcy was filed in Oct. 04. In Janurary 05 one of the creditors turned the debt over to a Collection Agency, and the harrassment began.

A letter with all pertinent copies of the bankruptcy was sent to the original creditor, along with the demand to have the collection agency cease and desist.

The bankruptcy was discharged in January.

Who is now liable for the harrassment? The original creditor or the Collection agency?

(I know it's a bit OT....but since the topic began....  ;-)

[socrateaser]

>A bankruptcy was filed in Oct. 04. In Janurary 05 one of the
>creditors turned the debt over to a Collection Agency, and the
>harrassment began.
>
>A letter with all pertinent copies of the bankruptcy was sent
>to the original creditor, along with the demand to have the
>collection agency cease and desist.
>
>The bankruptcy was discharged in January.
>
>Who is now liable for the harrassment? The original creditor
>or the Collection agency?
>
>(I know it's a bit OT....but since the topic began....  ;-)

Depends on whether the collection agency bought the debt outright, or is a servicing agent of the creditor. If the former, then, unless you notified the collection agency of the bankruptcy, the agency may be able to come after you. It depends upon the timing of when the creditor assigned the debt, when you were first contacted by the collection agency, when you filed bankruptcy and when you were discharged.

If the latter, then both the creditor and the agency could be sued under the federal fair credit collection act.

[T0052SC]

>The Credit Reporting Agencies (Transunion, Equifax, and Experian; aka CRAs), assuming you have contacted each individually, will begin an investigation. This usually means that they will contact the card issuer and ask if the debt is valid. If the card issuer says yes, then that will be the end of the investigation and you will be SOL (the law in this area is as weak as a used tea bag).

I contacted each one of the above credit agencies and discussed what was going on.  The agent I talked to said that they were opening a fraud investigation and that the creditors had 20 days to prove that I either signed the application or sales receipt.  He said if they can't prove it in 20 days then it is fraud and it will be removed from my credit report.

Questions;
1. Will things work this way, your write up seems discouraging?
2. Will they just remove the creditor or will they also go after my ex for fraud charges?

>Your argument is with the card issuing bank, not the CRAs. You should be sending them a written statement that the account and all charges against it is unauthorized.

I did this but two of the banks basicly told me to pound sand.  They told me I would have to take it up with the credit agencies.

Question;
1. Is there anything else I can do?

>Now, if your ex opened these accounts while you were still married, then depending upon the law of the jurisdiction, you may be stuck with the bill. If not, then the accounts are fraudulent, and the banks should clear your credit.

The accounts were opened just before we were separated.  I never knew about the accounts, my problem isn't being held liable because all the accounts are closed and at $0.00.  My problem is how they were closed and managed.  She let alot of the accounts go 90 days over due for 3 times and then had them closed by a credit grantor.  This on my record destroys my credit.  I just want them removed to resore my credit, I don't have anyone coming after me for over due credit.

[socrateaser]

>>The Credit Reporting Agencies (Transunion, Equifax, and
>Experian; aka CRAs), assuming you have contacted each
>individually, will begin an investigation. This usually means
>that they will contact the card issuer and ask if the debt is
>valid. If the card issuer says yes, then that will be the end
>of the investigation and you will be SOL (the law in this area
>is as weak as a used tea bag).
>
>I contacted each one of the above credit agencies and
>discussed what was going on.  The agent I talked to said that
>they were opening a fraud investigation and that the creditors
>had 20 days to prove that I either signed the application or
>sales receipt.  He said if they can't prove it in 20 days then
>it is fraud and it will be removed from my credit report.
>
>Questions;
>1. Will things work this way, your write up seems
>discouraging?

Each CRA has its own internal procedures. In my experience TransUnion is the most thorough in investigating disputes, Equifax will accept anything that the card issuer says, Experian is somewhere in between.

The federal law is somewhat vague. CRAs must verify that a debt is valid -- this can mean as little as having the card issuer send a letter claiming that the debt is valid, with no supporting evidence, or as much as demanding proof that you signed the application and the receipt.

I can't predict the success that you will have, but I'd appreciate your letting me know how it turns out, with each of the CRAs.

>2. Will they just remove the creditor or will they also go
>after my ex for fraud charges?

The CRAs' obligation is to protect itself from a lawsuit by you. If it removes the negative entry from your report, then that obligation is satisfied. Only the card issuer or the government can prosecute for fraud, although you could sue for civil misappropriation of identity.

>
>>Your argument is with the card issuing bank, not the CRAs.
>You should be sending them a written statement that the
>account and all charges against it is unauthorized.
>
>I did this but two of the banks basicly told me to pound sand.
> They told me I would have to take it up with the credit
>agencies.
>
>Question;
>1. Is there anything else I can do?

You can ask the collection agency to prove that they have actually bought your debt, but they have no duty to cooperate with you. Your only real action is a lawsuit. You shold wait until the CRAs are done with their investigations.