Legal Question in Credit and Debt Law in Massachusetts

Power of Attorney Abuse

While in Iraq for the Army my girlfriend had given power of attorney to her husband at the time. He didnt pay for her car loan and the car was repossessed. There was also a cell phone bill he didnt pay. A few other instances like that. Now she is home from Iraq, divorced and trying to move on with her life. And people are coming out of the woodwork looking for money for the repossessed car. Her credit is ruined. This was exactly 1 year ago most of this happened. Its effecting us now in every aspect of our life. Were trying to buy a house and they see her bad credit and think she didnt pay for a car. She tried to get a cell phone and her husband didnt pay his bill so she cant get a cell phone. She cant open a savings account. At this point we are just wondering if legal action can be taken. Would it be worth it. Could she sue him for the money she owes.


Asked on 10/06/07, 9:05 am

1 Answer from Attorneys

JOHN TATOIAN LAW OFFICE OF JOHN A. TATOIAN ESQ.*Licensed Only in Massachusetts

Re: Power of Attorney Abuse

Generally speaking, a power of attorney is a document whereby one party (the "principal") grants another party (the agent or "attorney in fact") the authority to act on his/her behalf for his/her benefit and subject to his/her control. The principal places his/her trust and confidence in the agent ( thereby creating a "fiduciary" relationship) and , as such, the agent owes certain duties to the principal,among them being loyalty, obedience and care. The agent can be liable to the principal in a number of different circumstances, particularly when the agent exceeds his/her authority granted by the principal or when the agent fails to perform those duties requested by the principal. That being said, based upon the facts you articulated, it seems that your girlfriend's ex husband ( the agent) may have failed to perform the duties entrusted to him by your girlfriend ( the principal) and,thus, may be liable under a theory of breach of contract of breach of the agent's fiduciary duty. Please feel free to contact my office for a more detailed analysis of your particular situation.

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Answered on 10/07/07, 1:09 am


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