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Mother Committed Credit Card Fraud

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This concerns a friend of mine. His mother took a credit card application sent in his name, filled it out, and received the card and used it. The mother left a large balance on it and has never paid it off. Now, it's on my friend's credit report, and he has a bad credit rating. Plus, collections people call him every now and then. What can he do?
He called the company who issued the card and said it was fraud, though he didn't say who did it. They won't take it off his credit report until they find out who did it.
What are his options?? Anyone have ANY advice? Could his mother compromise or come to some agreement with the credit card company to avoid criminal prosecution? what is likely to happen to her if he reports it?

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