How would you deal with a situation where your mother racked up $30,000 debt in your name without telling you and asked you to repay it for raising you? That happened with a young daughter last year before graduating from college. In a recent Reddit post, she shared her ordeal about finding out her mother's actions the hard way that eventually landed her in jail.
It All Started A Year Back With A Random Bill In The Mail
The daughter received a credit card bill almost a year ago that wasn't hers because it was from a different card issuer. She always paid off her one credit card bill on time. Upon further digging, she realised her mother had added her as an authorised user on her credit card. People with poor credit scores often become authorised users on another person's credit card, like a financially responsible family member, to build a good credit history. The authorised user can use the primary account holder's credit card as their own and benefit from the strong credit profile of the card owner. However, if the primary cardholder misses payments or engages in actions that lead to negative credit impact, the authorised user's credit score will also be impacted. While the daughter didn't pay much heed to the first red flag, the situation got out of control several months later.
Multiple New Accounts That Ended Up In Collections
The daughter had secured a job this year and was looking for an apartment. Little did she know her potential landlord wouldn't let her rent. Puzzled because she met all the salary requirements, the recent graduate couldn't determine why she was rejected until a letter arrived stating it was because of her poor credit score and history. A credit score and report helps lenders, landlords, and employers understand if you can make timely loan repayments and rent payments and manage finances responsibly. Credit scores are generally determined by credit bureaus like Equifax and TransUnion based on FICO 8 models that evaluate your loan repayment history, credit utilisation, lender remarks, and loan inquiries, among other factors. FICO scores range from 300 to 850, with scores between 670 and 739 considered "good" credit scores.
Thinking the rejection was due to a mistake, the daughter cross-checked details by checking her credit score for the first time. It had dropped to 490, making it challenging to secure loans, low insurance premiums, or rent apartments. Things got worse when she discovered nine accounts in her name, three of which were in collections. "After some crying, I decided to call the electric company, which one of the collection accounts was for, and they confirmed the address was my mother's current address," she wrote in the Reddit post. Upon contacting the new credit card companies mentioned in her credit report, she discovered the exact address. Not checking credit reports is one of the most common mistakes people make, especially when identity theft cases are rising. If any threat actor uses your Social Security Number or personal details to apply for loan products, lenders report it on your credit report, which you can dispute for resolution.
Mom Denies Knowing Anything, Later Says Its Payback For Raising Her
The daughter was in disbelief. She called her mother, who denied any knowledge and suggested that maybe her account had been hacked. She trusted the explanation blindly because they have always shared a close relationship. Soon after, on a friend's recommendation, the daughter lodged a police report, to which her mother vehemently protested, saying it would waste their time and "wouldn't do any good." When the victim didn't budge, the mother said she had to "take the hit on this one" and declare bankruptcy on the $30,000 outstanding debt. Although the parent disclosed she opened these accounts, there was no sign of remorse. She wanted her daughter to be grateful for letting her study in college and cancel the police report before getting caught. In reality, she hardly paid for anything at all. The daughter was torn between sending her mother to jail and declaring bankruptcy, which would likely devastate her credit report for a decade. She didn't choose to go under the bus for a debt that wasn't her. The police report remained in place.
Mom Gets Arrested, Family Revolts Against Daughter
The daughter disputed all accounts with credit agencies, and her credit score gradually improved as new accounts were deleted from her credit reports. Soon after receiving a call from an investigator, her sister contacted her to say their mother had been arrested. The whole family wasn't happy with the situation. The mother was on her way to work when a cop pulled her over with a warrant and arrested her. She spent a night in jail, and a judge charged her with four counts of felony linked with identity theft. However, she was released on recognisance because she had never been arrested before, and the last ticket was two decades ago for expired tags.
The whole family, including the grandfather, urged the daughter to drop the charges, and some conversations with her sisters became very intense. Despite repeated calls and messages, the mother gave her the cold shoulder. While the family, including the victim, remained conflicted about the mother staying in jail, the positive impact on the credit profile enabled the daughter to secure a new apartment. The difficult situation at home has no easy fix as the victim faces some form of loss, be it financial or in relationships. To avoid similar ordeals in the future, she could also enroll in free credit monitoring services from credit reporting platforms that track credit profiles in real-time to alert users of any changes to their credit reports and dispute them with the credit bureaus. Free credit score and monitoring services from Credit Sesame have helped many spot early signs of identity theft via prompt alerts on credit report changes.
