Greetings! I have been a lurker for over a year. I am writing on behalf of my son's fiancee. Here is her (C's) situation. She was the fortunate recipient of a trust from her grandparents (held in her name, through a brokerage). Her mother was the administrator of the account, until C's 21st b/day (last year). Come to find out, C's mother had been using the account for years, to pay for items unrelated to C. The account has been nearly depleted. C. was depending on the money to finish paying for her college education. Mother took out credit cards in C's name. She evidently opened up other accounts in C's name (how she did this - we have no clue). She evidently even set up the family's cell phone account in C's name. The problem (besides the pilfered funds) is that the mother has never paid anything on time. C. wants to see her credit report, so she tried to order hers to find out what the damage really is. When she was asked to validate that she is, indeed, the right person matching w/ the SS# - she was asked questions about such things as "her last mortgage at xx address" and she had no idea what they were referring to for any of the identity questions. So she has never been able to see her credit reports. She knows it is bad b/c she tried to apply for a credit card at Circuit City and was told her scores were too low and payment history dismal, etc. That is when she figured out something was going on and started making phone calls to try to figure out what her mother has been doing (her mother refuses to discuss this - and they are estranged over the matter). Does anyone have suggestions for how C can get her credit report and start digging in to find out how bad the damage is? And start trying to repair it . . . Thank you for your help.
C will not be able to get her credit report on line. C should write to the CRA's and demand her FREE credit report that is due her because of the adverse action taken by Circuit City. She will need to provide proof of her identity and proof of her residence. A copy of the Adverse Action letter will also be needed.
Strategy? Thank you for your quick response! Unfortunately, by the time C confided in me, she had thrown the letter away from Circuit City. Will it suffice to write and reference being turned down by Circuit City even tho she can't enclose the letter? Should she mention anything about suspecting identity theft or her mother illegally using her SS# to get credit cards w/o her permission? Any advice? Thanks again! A.
She needs to file fraud charges against her mother. You would think this would break off the relationship, but it does not. Or, at least, it didn't for me. My mother did all that (except the trust fund, never had one) while I was overseas in the military. Came back 2 years later to a hioly hell of a credit mess. I could pay it down, but what did she learn? That I'd bail her out. I filed fraud charges, the accounts were all (finally) cleared off my reports, and she got a load of probation. Yea, she was a tad icy toward me for a while, but I would simply remind her that she wronged me, and I had forgiven her for it. The rest was to clean up the mess she had dumped on me. She warmed up. And while she still messes with this crap for siblings who don;t report it, I am definitely off limits to her schemes.
Wow - good for you! At least you know you have established boundaries! How does one "file fraud charges?" Of course, we still need to get that credit report and find out what C is truly dealing with. I think C is really frightened as to what she is going to find out. Plus she is so angry that she is just starting out in life and already has a terrible credit record - and did nothing to make it so. I would have no idea how to help C file charges for fraud. And on some things, we suspect her mother has closed the accounts out b/f C turned 21. For example, we know she did that w/ the cell phones. What a mess. Thanks again for any and all suggestions . . . we need help.
You'll have to goto the local police department where C lives, or sheriff's department. Tell the office C is a victim of identify theft. She'll need as much supporting information as possible. Also, goto FTC and file ID Theft complaint. http://www.ftc.gov/bcp/edu/microsites/idtheft/
Thank you so much! I really appreciate the help. C is reluctant to do anything in re: to her mother but I told her - her mother has flagrantly violated her!!! Would she take this abuse had it been perpetrated by someone else? Heck, No! Her mother went through over $75,000 that was put in a trust for C - and essentially - the loss was a lot more than that - b/c if the money had stayed in the trust and not been pilfered over the years - the principal would have grown considerably (doubled at least) over two decades. So the whole thing is pretty heinous, IMHO. if it were not bad enuff to rip off the girl's trust fund . . . then to ruin her credit . . . amazing. And we are not talking people who were living in bad circumstances so mom had to raid C's trust fund to pay bills. These are people who have a vacation home, belong to the country club . . . and Mom carries Louis Vuitton handbags and wears Prada shoes . . .(wh/ C's money doubltess paid for!!!!) Unreal.
After the reports are filed, she'll be trading the Louis Vuitton and Prada for a sexy orange jump suit. If she doesn't file the reports she's only hurting herself. This isn't just going to go away, and she needs to realize it. http://www.usdoj.gov/criminal/fraud/websites/idtheft.html
latest in haute couture! And I guess that would really mess up Momma's tee time at the club, as well! Thanks for good advice . . . I am really working hard to help C - as this affects her future as well as my son's . . . and I know the poor girl would just like to forget about it and hope it all "goes away" - I will show her the links . . . thank you so much!
I am sure Circuit City will be glad to provide another one. If not, have her re-apply and get another one. If her credit is as bad as you say, what's one more inquiry?
Immediate step "C" needs to call all three Credit Reporting Agencies (Equifax, Experian and Transunion), and request a "Credit Freeze", and update the information to include only her personal information. A credit freeze requires "C" to approve with the agaencies any application for credit. I don't know if "C"'s mother is still doing this activity, but this should be a safety measure taken immediately. "C" should be able to obtain her credit reports through written request, she will have to provide copies of SS# card, and driver's license. Next, contact an attorney to initiate removal of "C"'s mother as custodian, executor or administrator of the trust. This is a legal filing, you may want to contact the legal firm who drafted the original trust. "C"'s mother can be sued for these actions, this is "willful negligence" (and malicious). If it seems "more palatable", the "trust" can sue her (not "C"). The crucial thing here is to find out what "C"'s mother's scope of authority was on the trust. Just a basic question, since "C"'s grandfather created this trust, is "C"'s grandmother still alive? She could be influential in this case.
Convoluted situation The whole situation is very convoluted. C's g/parents are alive. However, they feel "guilty" b/c they were millionaires who had a very lavish lifestyle while raising their daughter (C's mother)- live-in housekeeper and cook and horse stable w/ staff, etc. Dad made bad investments and lost everything late in life, so all that was left was C's trust account. The g/parents tried to break the trust themselves to obtain the funds at one point. G/parents were fully aware that C's mother was raiding the $$ but since they felt bad that she was not going to inherit her millions, they refused to do a thing about it (despite C talking to them about it several times in the last two years). Long story, to say the least. C's mother would not let her see the paperwork on the account despite repeatedly requesting even a quarterly report (C. began asking in winter 2005). We discovered summer of '06 (b/f C's 21st birthday) who the brokerage was - but C. felt bad about it b/c she had surreptitiously rifled through her mother's personal papers to gain access to the statements. At that point, she realized the fund had essentially been drained. C didn't want to get aggressive b/c she was still trying to resolve other issues w/ her mother and felt it would only make things worse. I guess she thought somehow her mother was going to "make it up to her" - who knows. After finally finding paperwork, C. came to me for advice (summer '06) so I wrote a letter to the brokerage explaining that her rights had NOT been protected, etc. and the brokerage had a fiduciary responsibility to have oversight . . . and that she wanted back copies of quarterly financial statements so that she could track where the money had been disbursed. However, C. never sent the letter. I begged her to send it to protect her rights. The fund was supposed to be turned over to C in Nov of '06. She did not get the paperwork til a few months ago, despite her finally breaking down in Feb and calling the brokerage. They said her mother had to initiate signing over rights to the account, but that they had "sent her the paperwork." C. more or less feels the money is just the "price she paid" for having a very self-centered, entitled mother - so end of that. However, her credit has been ruined and she is also in denial about that to some extent - keeps telling me - well how can I be held responsible when my Mom did all this. Recently, she asked her mother - "how could you mess up my credit like this?" Her mother's reply (you are gonna love this) "Good God. I don't see why people make such a big deal out of that credit stuff. So what. So I didn't pay some bills. Get a life and move on." In re: to g/parents - if anything - they have made C feel that she should just forgive and forget b/c they say her mother was "cheated" out of an inheritance, so C should just suck it up. If you have not figured it out already, we are talking a really dysfunctional mess here, LOL!!!!
WOW! This is a story, perhaps some money can be reclaimed by selling this story as a television series! Forgive me, that was a bad joke.. But, there are two issues here: 1) The trust fund, and 2) "C"s credit. There are two different "crimes" here. 1) Negligence of fiduciary responsibility, and 2) identity theft/credit fraud. This is messy, all things considered, I would try to communicate with the creditors that have negatives on C's credit reports. The rub here is that C may have to file some sort of charges against her mother. You will have to look at dates of these accounts also, if any were opened before C's 18th birthday (somehow) there is a case for invalid accounts. Any opened after C's 18th birthday, you would have to use identity theft as a defense. Now to the tough part, YOU, as a "mother figure" to "C", have to tell her she needs to make a decision. Either she has to take some of the legal steps required to repair her credit, or..she has to live with the debts and bad credit. I know neither is an answer you'd like to hear, but this is the bottom line of the situation. You will need to quantify the damage here also, what the total of debts is, how much is left in the trust fund, etc. You will need a financial snapshot to work with in your negotiations with the creditors. The other possible solution, and I only recommend this in rare situations, is to retain a reputable credit repair firm. I do recommend one of the members here, Apex Credit Services. You can look up postings under apexcrsrv as the username. A professional may be able to look at all the details, and find ways to work out the credit reporting issues. This should be done in concert with the brokerage firm, which does have some responsibility here. I used to own a brokerage firm, and I can tell you they are responsible to watch for these types of withdrawals and activities. Also, do not let the brokerage firm push you around. If "C" is now 21, then the trust should automatically go to her. Yes, you will need a copy of the trust agreement, but there may be a copy of the agreement in your county records. A trust becomes an entity just like a corporation, it must be registered somewhere. I'm sorry for C, this is a mess, but it is time for hard decisions regarding her own life (and you son's).
C wants restitution from people who defrauded her without taking those people to task. Can't be done.... someone will end up with a bright orange jumpsuit.
Biz - wonderful suggestions Biz- can't thank you enuff for your advice. Yes, this is quite a story (there is a lot more!!!!!) and glad you found it worth reading - I am a writer, LOL!! (Maybe should not say that - now everyone will notice grammar errors and misspells!!!) Guess I could hash out a Danielle Steele type novel based on this All levity aside . . . I have IM'd C this evening, passing on some rudiments of what has to happen, and she is saying she will do whatever has to be done. I don't know if she really understands what that may mean. Small town, lots of gossip . . . it would be a true soap opera if she had to file a police report, but I am in complete agreement . . . whatever has to be done must be tackled. All your suggestions are valued, and I am taking notes. I have been shocked at how inattentive the brokerage was with this account. C. does have control of the account as of several months ago, but she still does not have historic paperwork - she is waiting for the next quarterly statement. I suspect the brokerage is fully aware that C has been scammed and so has been dragging feet w/ getting her info. I am incensed about that. I am ready to go after them and so is C. I explained that the two actions are inevitably connected - she has to go after her mother if she is going to go after the brokerage for neglecting their fiduciary oversight. I am going to start writing the letters to the credit companies tomorrow, to request hard copies of her report. Once we get those, we will be operating on facts rather than supposition and the few things we have put together (such as the cell phone bill). We are aghast that the "secret question" from TransUnion, I think it was, involved a mortgage! So until we see exactly what has transpired, we are operating in the dark. I guess it will take some time to get those reports in. Thank you so much for your help. I will be calling on more advice once we find out exactly what we are dealing with. Any other ideas you have - please share. PS - If you like stories, I have lots more, LOL. I was in credit card debt - over $100,000, just five years ago. (no, no - not due to "lifestyle" decisions!!!) Another post for another day . . .
Orange is good I personally would like to see mother, step-dad and broker all wearing orange!!! This sweet girl even got through her first two years of college on a full scholarship, and assumed she had plenty of money in her trust account to take her thru/ med school (PA.) I had never considered that we would have any way to force any of the parties involved into making "restitution." ???? Do you mean - monetary? I have a feeling I am going to be writing a lot on this board once I get more info on what has occurred. You guys are wonderful!!!!! Wish I had found you years ago . . .
If you don't get any satisfaction from the brokerage, there are regulatory agencies that oversee brokerages. Right now there is a lot of attention in parts of the industry on how customer's money was handled. It's not anything like this, but I would still think they would want to avoid oversight. Bizwiz knows more about this than I do, since he actually owned a securities firm. Biz, aren't there some regulatory bodies that she could report the brokerage to for lack of fiduciary responsibility?
First, regarding the brokerage firm,tell them that if you do not receive full documentation, and cooperation, you will be filing compalints against them with the "Financial Industry Regulatory Authority"; for more impact use the acronym "FINRA". This will get their attention! The FINRA is the regulatory body that licenses individual brokers and firms. They cannot do business without their licenses. The FINRA hands out SEVERE penalties, both in dollar amounts, and suspension times. This is the website: www.finra.org You can look up the firm to see if there are any other violations out there, and historical ones. The firm can supply the historic documentation, just push them for it. They always respond to an "or else" ultimatum. Just be aware that should you move into "legal action", there is usually an arbitration clause for accounts with a brokerage firm. But, depending upon the age of this account (20+ years?), there may not be. Just don't be intimidated by a brokerage firm, they get very nervous when you start speaking "violations".
Thanx Hed and Biz!!!! This is great info! I feel so much more empowered now - just knowing we really do have some recourse if we don't get full cooperation (sure haven't so far!)
You call the credit card company and report that the card was not opened nor used by you. You also call the police and file a report to the same effect. the CC company will ask for the police report as proof, then they will cease collections and mark the entry in your credit reports as identity theft. (theorectically) Edit: Yea, what they said!
