Student loan fraud

[dan-cat]

What is the name of your state? Kentucky

Hello,

I'm originally from England but now live in Kentucky with my wife and son so I am very new to US legalities.

Years before I met my wife, she went to college. Unbeknown to her at the time her mother (now my mother in law) took out a student loan in my wife's name. Now we have come across letters addressed to my wife but sent to my mother-in-laws address stating that my wife owes 5,000.

Ok so a couple of questions:

1) Is it really possible in the US to take a loan out in someone else's name without forging a signature? If so, how come photo ID wasn't required when the loan was completed? Basically how could this happen?

2) My wife will probably not file police charges against her mother because she believes it is wrong to stand against your parents in this way. Does this mean that we are powerless to get the correct name on the debt?

3) If my mother-in-law decides to come clean and accept the debt - will the loan company transfer it to her upon her request?

Thankyou very much for your time.

Dan

[cmorris]

This is called identity theft. Without your wife deciding to press charges, I'm not sure if there is anything she can do. Student loans never go away. No, they will not just "transfer" it into your MIL's name either.

I just graduated and I don't think I EVER showed ID. Everything was done electronically. That is how easy it is for your MIL to do this--the computer!

What happens if dear old mom decides to do this again? Credit cards, installment loans, etc? Is your wife just going to let her do all of this to her? Oh, let me guess. She SAID she wouldn't ever do this again, right?

Tell your wife to file a police report, put fraud alerts on her credit reports, and help the student loan company put the MIL out of the ID theft business.

[Tayla]

To shed clarity on a matter: Most loans require the person to show up in person to apply. This is due to curtailing indentity fraud. So whilst online applications can be an alternative, MOST federally funded loans require the person to show proof of identity. See the Patriot Act for more details.


A student loan will not be transferred to another entity. It can be paid off by another entity though (be it through consolidating or another being).

Since your wife refuses to use the laws to her advantage then she is technically going to need to request the loan documents and confer with a lawyer for an alternative avenue to rectify this matter.

[dan-cat]

Hello,

Thanks for all the replies. It's funny that 'Mother-in-law' has its own abbreviation. I'm guessing the term is used alot on this forum.

I don't think I'm ever going to persuade my wife to file a police report and I'm guessing that my MIL knew this before she did it. The problem is though if I let her get away with it now, that will give her the green light to do it in the future.

Thanks again

Dan

[Veronica1228]

Originally Posted by dan-cat

Hello,

Thanks for all the replies. It's funny that 'Mother-in-law' has its own abbreviation. I'm guessing the term is used alot on this forum.

I don't think I'm ever going to persuade my wife to file a police report and I'm guessing that my MIL knew this before she did it. The problem is though if I let her get away with it now, that will give her the green light to do it in the future.

Thanks again

Dan

I also suggest that your wife get copies of her CR from all three CBs just to make sure that this is the only time the MIL did this.

To insure that your MIL doesn't do this again, follow cmorris' advice and get fraud alerts placed on her CR. You're right that if your MIL did this once and got away with it, she may try again. Protect yourselves!

Good luck!