When I was 18 my father and I applied jointly for a credit car so I could begin to establish credit. I have not used the card since I was in college, twelve years ago. When my wife and I bought our house four years ago I discovered that the account had a $20,000 balance on it and was past due on a number of occasions, then past due 120 days. I spoke with my father and he agreed to make an agreement with the creditor to pay off a fixed amount per month. We got a letter from my father and canceled checks for several months prior to closing on the house and were able to get a great mortgage rate (My wife has perfect credit). Last week I pulled a copy of my credit report and discovered that the account had been charged off as of 3/01. I spoke to my father and he said he stopped making payments because the amount he could afford to pay was not gettign him anywhere with the balance. He did not consult me first or I would have tried to figure out a way to avoid the charge off. The balance is now 17,000. I can (grudgingly) afford to sell some retirement investment money to pay off some or all of the debt. I want to go into a negotiation with the credit card co (MBNA) to be some percentage of the balance and have them remove the charge off from the account and have it show something that does not adversely affect my credit. I am hoping that my "story" about having no involvement in this account for many years, as well as my telling them they can keep the charge-off on my father's credit reports, as well as ready cash will get me somewhere. Comments and advice on negotiation tactics will be greatly appreciated.
There is no way that they can prove that credit card is yours. It is too old. They do not keep records that long. Ask for a verification. If they can't verify it, tell them to remove it. I know this raises a moral question because it is your card but you should feel no responsibility to pay it. You never got the money.
payments have been made on the card in the last twelve to eighteen months. Won't that make it easier for them to verify the account? Also, if I am going to write a letter asking for verification, do I write it to MBNA or the CRA's, and do I just say I want verification that the account is mine, or do I say that to my knowledge the account is not mine? What do they have to provide as proof?
What if you got a letter from your father saying this account was not joint? I would try this way first, to see if your father will take the full blame for this one especially if he admits he owes this amount. Tell him in order to pay for HIS errors you would have to sell some stocks. If it doesn't work with that way I guess the only other step is validation. I'm surprised there isn't a judgment for that amount!
KHM - My father will do whatever I ask because he feels badly the account has damaged my credit. Are you suggesting that I use such a letter in support of a validation request? We have each attempted in vain to have me removed from the account with the creditor (3-4 years ago), as they firmly say it IS a joint account, which it is. I don't know what documentation they need to provide to prove it though, and whether they will have it given that the account was opened in 1986.
Perhaps deny you were ever even a co-signer. Send validation letters. At the same time, dispute with the CRA as not mine.
I think you may have to say your father fraudulently opened the account in your name as well as his. I don't know, legally, what the repercussions can be, if he admits this. Did you ever sign an application?
