Legal Question in Credit and Debt Law in Texas
Changing Credit History
When I was 17, I started receiving offers for credit cards. My parents asked me if I wanted them to get the cards in my name to help build my credit. Knowing my parents, I told them no. They signed the forms anyway and received 2 credit cards that were in my name. They began using the cards, and as expect, went over the limit and were late on payments. After a few years, the balance on each card was double the limit and my credit score was plummeting. Five years later, they have paid off one card and have the other under the original limit, paying on the min. due. As a result, I now have a ''poor'' credit rating from all 3 large credit reporting agencies. I am at the age where I need good credit - buying a house, a car and financing a wedding cannot be done with bad credit. Without legal action, is there a way to transfer the credit history to whom is really at fault? My parents admit what they do and claim full responsibility. If legal action must be taken to clear my bad credit history, what is the process and about how much will it cost in legal fees?
1 Answer from Attorneys
Re: Changing Credit History
Your parents were wrong to do what they did, they know it and you know it. Suing them does not really solve the problem, since the third party creditor is not bound by any judgment between you and them.
You were a minor when the cards were issued. Did your parents co-sign the cards? Alter your date of birth?
Start by notifying each creditor that you were a minor when the cards were issued, and they were never issued to you. Confirm that you never signed a credit card receipt, and never gave anyone permission to do so.
Send the letters certified mail, and send a copy to the credit reporting agencies as a dispute on the debts. You may want to enclose a copy of your birth certificate and your Driver's License to establish your date of birth and signature.
I am presuming that you do not want to press criminal charges against your parents, and suspect it would be difficult to do so, considering the length of time involved, and your tacit approval by not notifying the authorities earlier.
They will have 30 days to respond. If this does not clear your credit reports, feel free to contact me to discuss further action.
TCL
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