Credit card Fraud (by family member)

kenneth1946

My son has always had an issue with debt. At the age of 20 he got in such a mess he ended up going bankrupt.

At the age of 18 I allowed him to be a 2nd card holder on one of my Credit Cards. He ran up a bill of aroung £3000 I was furious. But over the years he paid back a reasonable amount of money.

Back in 2004 I moved to Spain and gave him the trust of paying this credit card and allowing him to use it again.

I returned to England 18 months later and I never really mentioned the card as I expected him to have grown up and was sensible enough to continue to pay the bills.

To cut a long story short I found out earlier this week that he has maxed out this card to over £8000 along with fraudulently obtainting another card in my name which has a balance of around £10,000.

He has told me this because he can no longer afford the minimum payment. To be frank neither can I. I am not working now and my income isn't enough to pay this card. I am unsure what to do, I am reluctant to help him but I don't want my credit rating to suffer either. I have checked my credit file which shows he hasn't missed a payment and had a Capital one card in my name which he has cleared now.

What are my options?
Could my Son be faceing Prison if I go to the CC companies and advise them what he has done?

Clariman

Poor you. If he is an additional cardholder on the original card then it is legally your debt not his. So you owe the money not him. That is the legal position on card number one. Clearly you would want to retrieve some of that money back from him but you can't make him. Given his past credit issues on your card, I am a little surprised that you let him continue to use your card. I am not sure what the authorities view would be of him making the payments on your cards, because it isn't legally his debt.

As for the second card, then he has clearly committed fraud which is a serious offence. If he has led a blameless life to date then I would be surprised if he would face prison for it, but I have no knowledge on that ... that is purely a guess on my part.

There may be a legal discussion board on this website which may be able to advise. If not, I can point you in the direction of one on another website (which I have no connection with).

Good luck
Clariman

jamalfatty

Your first port of call I think should be the CAB who could probably advise you much better than most on here, myself included. Dont imagine he would go to prison if its a first offence.
Your main concern should be the card that you knew about with the £8k balance, regardless of who spent it, this is your debt - I would phone that company and advise them you are struggling; dont do this yet though with the £10k one as would be very difficult to then approach them later to say you never applied for it

chuckley

how is it that u were unaware of the increasing limit, when its technically your debt?

NickX

Well this does sound like fraud, but I do not think you should get your son arrested, I would suggest that you talk to him, explain that he has committed a crime, and agree a repayment plan that is agreeable to you both. Hope this helps.

Superheavy

Hi Kenneth, it sounds like a horrible return to the UK for you, and a dreadful surprise as well to be betrayed like this. You really do need get down and talk with your son to see what you can both do about these debts, and also try and persuade him that the consequences of such actions could end up with him in prison if he repeatedly commits fraud like this.

missile

First thing I would do is to report card #1 lost and ask cc company to change address to yours and cancel the additional user.

I can understand why you entrusted your son, but not why you failed to keep track of the balance? Easy to have statement sent to spain or check up on line. As others have said, this is your debt.

I think the only way is to report your son for CC #2. May be harsh but you seem to have no alternative and he needs to accept responsibility.

missile

I would also suggest you get a credit report to see if he has incurred any other debts in your name> http://www.experian.co.uk/creditreport/

kenneth1946

I have worked out my finances.

I have approx £170 spare each month this is once everything has been paid. Would the two credit cards accept this amount between them?
My Son can afford to pay me this so I wouldn't be out of pocket.

I understand my credit would be effected but that isn't really a problem at my age I dont need or want any further credit.

missile

If you explain the circumstances they MAY freeze your interest. You did not say which card company, some are more sympathetic than others.

CannyJock

kenneth1946 wrote: »

I have worked out my finances.

I have approx £170 spare each month this is once everything has been paid. Would the two credit cards accept this amount between them?
My Son can afford to pay me this so I wouldn't be out of pocket.

I understand my credit would be effected but that isn't really a problem at my age I dont need or want any further credit.

On the £ 8000 balance alone, the minimum (assuming 3%) would be £ 240, so your offer of £ 170 would only be acceptable to the companies if they agreed to enter into a specially arranged payment plan.

And I think you're right that entering into an arrangement like that will have an affect on your credit file. Are the CAB people the best ones to approach the credit card companies on your behalf? Anyone got any experience of special arrangements?

Course, the irony here is that this won't have any affect on your son's credit rating by the sounds of it.

Definitely worth taking missile's advice and checking your credit report for any other debts in your name - and your son should do the same so you can see what else he's liable for.

How can you be sure that he won't go and do this again?