When your relatives commit ID fraud - and what to do
Lenona
one that readers responded to and thus made her change her mind.
Her advice as to what the victims "should" have done is ridiculous.
What would have been the chances of getting their money back had they
followed her advice on how to do so? Hint: She said that the victims
should not have filed charges because "relatives don't do that to one
another."
And here are the respondents:
Readers Rap Grandma's `Ripoff'
January 19, 1999 By Ann Landers.
Dear Ann Landers: I would like to respond to the letter from "Ticked
Off in Texas." His mother-in-law, "Edna," used her granddaughter's
name to get phone service, and then, "Tiffany," the granddaughter,
wound up $500 in debt. She filed charges against Grandma for fraud.
You said, "Relatives don't do that to one another." Ann, Tiffany HAD
to file fraud charges to get the negative credit removed from her
report. Paying it off without disputing the charges would still cause
credit problems for the girl.
I negotiate home loans for one of the nation's largest lenders. Here's
what would have happened had Tiffany not filed the fraud report: It
would be virtually impossible for her to get a car loan at normal
interest rates. She would forever have to put down a large deposit to
get utilities. She would have difficulty qualifying for student loans
and certainly would have trouble getting her first home.
Early credit problems for young people can forever change the way
their credit is treated. Where I work, there is a flag put on credit
reports for Social Security numbers issued in the last 18 years -- and
thus belonging to minors. If the phone company had had this
information, they would not have extended credit to 16-year-old
Tiffany.
While I'm at it, let me take this opportunity to get across some
important credit information to your readers: If you are moving to
another state and plan to buy a home, keep close at hand your tax
returns, bank statements and recent paycheck stubs. You will need
these to qualify for the mortgage on a new home.
If you are getting a divorce and dividing the debts, be certain you
list the company name and account number for each credit card debt in
the property settlement. Don't let your attorney write, "He gets this
bill, and she gets the other." Ten years later, it's difficult to
determine who was supposed to pay what bills when new accounts and new
spouses are added to the mix.
Diana in Palm Harbor, Fla.
Dear Diana: Thanks for giving my readers a lot of valuable legal
advice for free. Keep reading for more about Edna and Tiffany:
From California: Your advice to "Ticked Off in Texas" was way off the
mark. My wife's elderly aunt was ripped off for more than $150,000 by
her nephew. The money came from the sale of her home and was her
retirement nest egg. She sued him to get it back. Would you have
denied her that money just because he was a relative? Grandma is a
crook and deserved to be nailed.
Temple, Texas: I couldn't believe your addle-brained response to
"Ticked Off." The only thing Tiffany's parents should have done
differently was warn Grandma of the impending fraud charges if she
didn't pay up promptly and clear the matter with the phone company.
That would have given Grandma the chance to do the right thing and
preserve family harmony before Tiffany filed a fraud report.
Honolulu: You blew it, Ann. If the phone company could not collect the
$500 debt from Deadbeat Granny, how do you expect 16-year-old Tiffany
to do it? Granny sounds like a con artist. A day in a jail cell might
do her some good.
Roanoke, Va.: Filing charges is the only way to clear Tiffany's name.
I have seen families try to put phone bills and bank accounts in the
names of children who were 4 or 5 years old. "Ticked Off" might want
to write other utility companies and get a copy of Tiffany's credit
report to make sure Granny hasn't surprised her again. In fact,
everyone should get a copy of his or her credit report once a year.
Also, Ann, your Pollyanna notion that relatives shouldn't sue each
other is naive. When the relative is a crook, that person should be
treated like any other crook.
Dear Readers: I'm afraid I put family loyalty ahead of the financial
and legal facts of life. The critics are right.
(end)
(I realize, of course, that things may be even more complicated now,
but the pragmatic lesson is still the same.)
Lenona.
Rod Speed
> Just thought I'd dig up this Nov. 1998 Ann Landers column - a naive
> one that readers responded to and thus made her change her mind.
> Her advice as to what the victims "should" have done is ridiculous.
> What would have been the chances of getting their money back had they
> followed her advice on how to do so? Hint: She said that the victims should
> not have filed charges because "relatives don't do that to one another."
She's right. Only stupid americans are that litigious.
> And here are the respondents:
> Readers Rap Grandma's `Ripoff'
> January 19, 1999 By Ann Landers.
> Dear Ann Landers: I would like to respond to the letter from "Ticked
> Off in Texas." His mother-in-law, "Edna," used her granddaughter's
> name to get phone service, and then, "Tiffany," the granddaughter,
> wound up $500 in debt. She filed charges against Grandma for fraud.
> You said, "Relatives don't do that to one another." Ann, Tiffany HAD
> to file fraud charges to get the negative credit removed from her report.
Only in the stupid american system.
> Paying it off without disputing the charges would still cause credit problems for the girl.
Disputing the charges isnt the same thing as having granny charged by the cops.
> I negotiate home loans for one of the nation's largest lenders. Here's what
> would have happened had Tiffany not filed the fraud report: It would be
> virtually impossible for her to get a car loan at normal interest rates.
Only in the stupid american system. In our system, the ombudsman
would force the credit reporting agency to amend the credit report.
> She would forever have to put down a large deposit to get
> utilities. She would have difficulty qualifying for student loans
> and certainly would have trouble getting her first home.
> Early credit problems for young people can forever change the way
> their credit is treated. Where I work, there is a flag put on credit
> reports for Social Security numbers issued in the last 18 years -- and
> thus belonging to minors. If the phone company had had this
> information, they would not have extended credit to 16-year-old
> Tiffany.
> While I'm at it, let me take this opportunity to get across some
> important credit information to your readers: If you are moving to
> another state and plan to buy a home, keep close at hand your tax
> returns, bank statements and recent paycheck stubs. You will need
> these to qualify for the mortgage on a new home.
Only in the stupid US system.
> If you are getting a divorce and dividing the debts, be certain you
> list the company name and account number for each credit card debt in
> the property settlement. Don't let your attorney write, "He gets this
> bill, and she gets the other." Ten years later, it's difficult to
> determine who was supposed to pay what bills when new
> accounts and new spouses are added to the mix.
Or dont divorce in the first place.
Nope.
> (end)
> (I realize, of course, that things may be even more complicated now,
> but the pragmatic lesson is still the same.)
Nope.