Mistake 20 years ago

[zim69]

What is the name of your state (only U.S. law)? CA/NY
Hi All,
I really need some advice!
When I was 18, living in CA, my parents were in a difficult financial situation and to make ends meet they opened a credit card account in my name without my knowledge. They charged $15,000 on the account. Shortly thereafter, they filed for bankruptcy.

Over the last 20 years, they have received collection notices on the account. Because they filed for bankruptcy, they assumed that they could safely ignore all of these notices. I don't want to discuss how stupid or irresponsible this was; all that's important is that it happened.

I recently discovered that my bank account was frozen. The law firm responsible informed me that a judgment was made against me for $45000, apparently $15000 + late fees! They said that they have sent repeated notices, set court dates, and I refused to appear in court to defend myself. However, I haven't been living in CA with my parents for 20 years.

So, what do I do? Technically, I am a victim of fraud since I never opened the account, my parents did. Also, I never received any notices regarding the debt. My permanent address varied over the past 20 years, but it was not in CA since I went off to college. I currently live in NY and basically, I am not that hard to find, if a credit agency wanted to find me and send me a notice. Finally, I love my parents. They made a horrible mistake and they're sorry, and I don't want them to go to jail for fraud.

Does anyone have any advice? Thank you!!!

[Antigone*of*Greece]

Originally Posted by zim69

What is the name of your state (only U.S. law)? CA/NY
Hi All,
I really need some advice!
When I was 18, living in CA, my parents were in a difficult financial situation and to make ends meet they opened a credit card account in my name without my knowledge. They charged $15,000 on the account. Shortly thereafter, they filed for bankruptcy.

Over the last 20 years, they have received collection notices on the account. Because they filed for bankruptcy, they assumed that they could safely ignore all of these notices. I don't want to discuss how stupid or irresponsible this was; all that's important is that it happened.

I recently discovered that my bank account was frozen. The law firm responsible informed me that a judgment was made against me for $45000, apparently $15000 + late fees! They said that they have sent repeated notices, set court dates, and I refused to appear in court to defend myself. However, I haven't been living in CA with my parents for 20 years.

So, what do I do? Technically, I am a victim of fraud since I never opened the account, my parents did. Also, I never received any notices regarding the debt. My permanent address varied over the past 20 years, but it was not in CA since I went off to college. I currently live in NY and basically, I am not that hard to find, if a credit agency wanted to find me and send me a notice. Finally, I love my parents. They made a horrible mistake and they're sorry, and I don't want them to go to jail for fraud.

Does anyone have any advice? Thank you!!!

You have two choices:

1 ~ Turn your folks in. They are identity thieves and didn't think much of your future when they did this to you. They ruined your good name. A horrible mistake is bouncing a check and then making good on the check. What they did to you and to the creditor is criminal.

2 ~ Pay the debt for mom and dad, because if you don't turn them in, it then becomes your debt.

Sorry to hear your parents turned out to be pawn scum.

[zim69]

Originally Posted by Wirelessany1

You have two choices:

1 ~ Turn your folks in. They are identity thieves and didn't think much of your future when they did this to you. They ruined your good name. A horrible mistake is bouncing a check and then making good on the check. What they did to you and to the creditor is criminal.

2 ~ Pay the debt for mom and dad, because if you don't turn them in, it then becomes your debt.

Sorry to hear your parents turned out to be pawn scum.

Kind of a flippant answer, don't you think? I need a real analysis of the situation.
1. Is there a statute of limitations on this kind of fraud?
2. What are the legal consequences of being found guilty of this kind of fraud? Jail time? Fine?
3. The credit card debt was theirs at the time that they filed for bankruptcy. How does bankruptcy affect your debts?
4. $30000 in late fees seems excessive. $15000 invested in the stock market for 20 years would not make that much money. Is this usurious?

Thank you!
~z

[ecmst12]

Your parents could not have included this debt in their bankruptcy - it was not their debt. You can go over their bk paperwork and look for it, but don't expect to find it.

Once a judgement is in place, the SOL is irrelevent and only the date the judgement was filed matters. Judgements are usually god for at least 10 years and are renewable. You will probably need the services of an attorney if you want to try to fight the judgement.

Potential of criminal charges and punishment will be up to the police and DA handling the case. Not something we can tell you about here. But we CAN tell you that if you DON'T report the fraud to the authorities, that is the same as accepting responsibility for the debt.

It is very easy for a bill to triple over 10 years especially when there are attorney fees and court-ordered interest tacked on.

[VeronicaLodge]

one other option is since your parents "made a terrible mistake" they could make up for it by paying the debt off now. of course your credit is still ruined but hey, at least you wouldn't have to pay the 45k

[zim69]

ecmst12 & veronica,
Thanks a lot! That was really helpful. Two more questions, if I may:
1. If I choose to fight, do I fight this in CA or in NY?
2. What kind of a lawyer would be most appropriate for this case?
thank you!!!

~z

[Antigone*of*Greece]

[quote]

Originally Posted by zim69

ecmst12 & veronica,
Thanks a lot! That was really helpful. Two more questions, if I may:
1. If I choose to fight, do I fight this in CA or in NY?

You need to file a police report in your jurisdiction. Send the police report about the identity theft to the attorney who has the judgement. In the meantime you might also retain an attorney to help you deal with the attorney for the creditor.

2. What kind of a lawyer would be most appropriate for this case?
thank you!!!

An attorney who specializes in cases of identity theft for you and a criminal attorney for mom and dad

[12345672]

A couple questions:

1. Wouldn't the judgment be able to be challenged for lack of service (to the OP)?
2. Wouldn't the OP need to be sued in NY?

[Zigner]

Originally Posted by 12345672

A couple questions:

1. Wouldn't the judgment be able to be challenged for lack of service (to the OP)?
2. Wouldn't the OP need to be sued in NY?

1: OP WAS served...
2: Nope, OP opened up an account in California and was sued in California (his last known place of residence). Until OP deals with the identity theft issue, that is how it is looked at.

[StephenH]

First see where the judgment was filed and when. Call the court in your area and get a copy of it. See where and how you were served. If you were served at an address you did not live it, you may be able to vacate the judgment. Then, depending on how long you have lived in NY, you may or may not be past the NY SOL. If you are past the SOL, and you successfully vacate the judgment, send a cease and desist letter to the CA.

If you were served properly and the like, and the debt is still within its SOL. You have a couple of options:

1) Pay it. If you work out a payment plan with the CA, they may unfreeze your bank account for future deposits. If you have a large amount of cash (80% of the total balance owed), they might offer to make a settlement. In the meantime, ask your employer to pay you in checks instead of direct deposit.

2) File Identity theft charges with the police (and it may mean your parents go to jail and/or face fines and a judgment against them for their crimes).

3) If you have no other options, you may have to seek bankruptcy yourself. If you do this, consult an attorney.

If the judgment was filed a long time ago, check its SOL. If they filed it in another state, you will need to check its date of domestication in NY. If the judgment SOL has run out, you may be able to unfreeze your account, unless the CA decides to renew the judgment.

[cosine]

This is going to depend on your relationship with your parents. THEY are the ones that need to PAY UP ... in 2 ways. In one way they need to pay the debt that is truly theirs. In the other way they need to pay up by coming clean with their crime. That is, instead of you having to initiate the filing of the police report, they need to turn themselves in for this crime. If they are unwilling to do both of these things, they your relationship with them it not good enough to give you a reason to avoid filing the police report which starts the ball rolling to deal them as criminals. It would be better for them if they turn themselves in.

If you AND them together are hoping for a way for you both to get out of this debt then you both will be very disappointed. YOU pay or THEY pay.

[Dewey]

I'm sort of in the same boat. My husband's brother applied for a $100,000 business line of credit in his name and my husband's name PERSONALLY GUARANTEED without his knowledge or consent 4 years ago. He was granted $25,000 probably mostly based on the grossly inflated income and bank account balances that he ascribed my husband on the application. Interesting that he seemed to be truthful about his own income and bank account balance on the application.

We became knowledgeable about the account when he defaulted last fall and the bank demanded the full amount from my husband. According to the statement of the account we requested, we saw that his brother and wife blew through that $25,000 in 5.5 months on luxuries (99.5% spent on non-business related expenses)

As soon as I became aware of the situation, I filed a police report and retained a civil attorney. You don't say that you're married, but if you are--this affects your wife as well. As a spouse, I have absolutely no guilt in turning in my in-laws and want them to fry for this fraud. Is that an option for you?

[ecmst12]

You know, after 20 years, it's even possible that it's too late for any criminal charges to be filed against them. However you still need to at least report the crime. If the SOL has run, then at least they won't be going to jail. You are still going to need a lawyer to dig yourself out from this judgement.

[Dewey]

Originally Posted by ecmst12

You know, after 20 years, it's even possible that it's too late for any criminal charges to be filed against them. However you still need to at least report the crime. If the SOL has run, then at least they won't be going to jail. You are still going to need a lawyer to dig yourself out from this judgement.

I believe the SOL starts from when the OP first found out about the fraud, not from when it was first perpetrated.

Perhaps someone here can say for sure.

[zim69]

Thank you all for your thoughtful responses!
It seems that my optimal plan of action is to challenge the judgment on the grounds that I have never been served a summons. Since I was living several thousand miles away at the time that the summons was served (if it was served at all), I should win on this point. Secondly, if I file a police report, that should be sufficient evidence to cancel the judgment against me, right?

I think it is more than reasonable for my parents to pay the original debt. My only concern is the $30000 in late fees and possible criminal charges. I'm not sure whether I should have sympathy for many of the fees incurred by the collections agency or the law firm. Presumably, had they performed a simple google search on my name, they could have found me and saved themselves many of those expenses. Furthermore, it seems there is a conflict of interest here i.e. the collections agency or law firm have no incentive to be efficient and in fact could claim it took them many hundreds of hours to deal with my case, and thus accumulate any arbitrary amount in late fees (one could claim $1,000,000 in fees necessary to collect the original $15,000, right?). Does the court decide what level of fees is reasonable?

Finally, I'm sure this is located in some FAQ, but I couldn't find a definition for SOL and OP. Could someone define these for me? thanks!!!
~z