Legal Question in Credit and Debt Law in North Carolina

Much can be done. She will need to consult with a debt collection defense attorney.

I agree with Mr. Love. Law enforcement needs to be notified, and written disputes made with the collector, the creditor, and all 3 credit reporting agencies.

I agree with Attorneys Love and Coleman. I write only to expound on what they said.

Your wife needs to file an identity theft police report. There is a good fact sheet at www.privacyrights.org on identity theft - fact sheet 17a.

Was this done after your wife was divorced or before? It may make a difference, but this is a car so it may different than a credit card. i know clients with credit cards had the creditors claim that they are liable even if the debt was procured by fraud

Once your wife gets a copy of the police report, she needs to write a letter to the collection agency and advise that she is not liable and that this was caused by fraud/identity theft of her ex-husband. She needs to include a copy of the police report. The debt collector may also want her to fill out a fraud affidavit which she will have to do and have notarized.

It will then be up to the creditor to pursue criminal charges against the ex-husband.

If she is not willing to go this route then she is going to be liable for the vehicle. As an alternative, if she can persuade the ex-husband to take responsibility the creditor/debt collector may let her off the hook. However, my guess is that the ex-husband will not. But the decision has to be your wife's - most people do not want ex-spouses to go to jail.

The only other thing she could do is dispute the debt and deny liability, but if she does not do the fraud affidavit then the creditor can still try to sue your wife and this will still be on your wife's credit.