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credit card debt

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What is the name of your state (only U.S. law)? florida

My father who is 85 years old received a credit card with a $300 limit. He used the card and never made the first payment. He is now being sued for over $4000 with the attorney claiming it was fraud. My question is does this sound correct? What possible penalties other than monetary could there be for perpetuating this so called fraud. What is the difference between someone who just cant pay his bill no matter the size and fraud? He is basically judgment proof as he is insolvent so that part doesnt concern me. However, fraud has a nasty ring to it and I am wondering if there are more serious repercussions to this than meets the eye.

Does the fact that his credit is horrible and if the company did there due dilligence they wouldnt approve credit of five cents? It is alarming how many comapnies will offer credit when it is absolutely obvious considering the credit history that it can never be repaid? Do they then have the right to claim fraud and act shocked when the person never pays the card?
 



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