How to Get Out of Debt With the Get Out of Debt Guy » identity-theft

Talk Credit Radio Interview With Gerri Detweiler

Steve Rhode — Thu, 15 Mar 2012 20:02:08 +0000

Here is the recent interview I did with Gerri Detweiler on Talk Credit Radio.

Listen to Talk Credit Radio Interview With Steve Rhode

I had the pleasure recently to talk with Gerri Detweiler about a wide range of debt related issues and scams. We start out talking about identity theft, fake debt collectors, and then move into a wide range of debt related topics.

@GetOutOfDebtGuy

4 Simple Steps to Protect Your Credit from Identity Theft

Guest Post — Mon, 05 Mar 2012 01:20:46 +0000

From How to Get Out of Debt

Identity theft is on the rise, according to the FTC, and it’s a crime that is getting more expensive than ever for American consumers. Last year it cost us $1.52 billion, up from $1.4 million in 2010. The median amount paid out per claim was $537. And that’s just the cost of reported crimes.

While identity theft can involve different types of fraud, one of the most common concerns information on your credit report. A thief who gets his hands on your social security number could apply for credit in your name and rack up hundreds or thousands of dollars in credit card debt before you can say, “I’ve been robbed.”

Fortunately, you can protect yourself. Follow these four steps to make sure you and your credit are protected from identity thieves.

Step #1: Make sure you haven’t been a victim in the past.

If you’ve never checked your credit report, now is the time to check for errors and signs of fraud. Get your credit report at AnnualCreditReport.com, where you can get a free copy once a year from each of the three credit bureaus. Your credit report is long and data-rich, so take the time to review it carefully. Keep an eye out for:

Credit inquiries (also known as hard inquiries) that you didn’t initiate
Loans or accounts that you don’t recall opening
Incorrect personal information, such as an address that is not your own
Current activity on accounts you have not recently used

If you find incorrect information that could be a sign of identity theft, file a police report and dispute the errors. The FTC has a great guide on what to do if you suspect that your identity has been stolen.

Step #2: Get credit monitoring.

Once you’ve made sure your identity hasn’t been stolen and cleaned up fraudulent accounts if it has, it’s time to start protecting yourself. Sign up for free credit monitoring at CreditKarma.com. This service will monitor your credit report on a daily basis for any significant changes and alert you via email if a change has occurred. You’ll be able to act quickly if you suspect fraud. If you’re already a member of CreditKarma.com, simply adjust your communication preferences in your profile.

Step #3: Set up preventative measures.

Most credit card issuers will allow you to set up alerts on your accounts. For instance, you can request to receive an email or text if your credit balance approaches a pre-determined limit or if your card is charged with a large or over-the-limit purchase. Additionally, if you frequently shop online, make sure you haven’t saved your credit card information on the retailers’ websites. Although most reputable retailers will have high-level security, data breaches aren’t uncommon, so it’s a good idea to keep your information as safe as possible.

Step #4: Make your online accounts impenetrable.

Lastly, remember that protecting yourself and your credit should be an on-going process. If you bank or access any credit accounts online or on your phone, make sure you take the proper precautions and update them frequently. Use these steps to create a perfect password. Make your passwords difficult to remember and near-impossible to crack, and update them every six months. Don’t want to remember a long list of passwords? Use a service like LastPass. It saves all of your passwords for you, but is also password-protected, leaving you with just one password to remember.

Bottom Line: If you follow these steps to protect your credit from identity theft, you, your identity and your financial accounts will be better secured against thieves. However, no system is perfect. Check your free credit report on a regular basis and monitor changes to your credit score daily, for free, on CreditKarma.com.

Bethy Hardeman is the social media maven at CreditKarma.com, a completely free credit management service that provides free credit scores, financial education and personalized savings recommendations. Credit Karma helps more than 4.5 million consumers realize the everyday cost savings of having a good credit score.

Tax Refund Check Cashing Scheme Hits Southern Florida

Amanda Miller — Thu, 26 Jan 2012 14:05:41 +0000

From How to Get Out of Debt

As tax season rolls around it’s no surprise to see tax refund check cashing schemes arising in the news.

Announced Monday was the filing of a criminal Information charging defendants Wilson Lau, and his wife, Kate Yuee Lau, for their participation in a check cashing scheme involving more than $5 million in fraudulently obtained tax refund checks and tax refund anticipation loan checks.

U.S. Attorney Wifredo A. Ferrer stated, “It is time for tax refund scammers to realize that we will not allow them to steal taxpayers’ hard-earned money. Today’s charges are just the beginning. We now join forces with the IRS and Secret Service to combat tax refund fraud and identity theft. To this end, we will make the investigation and prosecution of these cases a top priority.”

IRS Deputy Commissioner for Services and Enforcement, Steven Miller, states: “The IRS is aggressively pursuing those who steal others’ identities in order to file false returns… Our cooperative work with the U.S. Attorney’s Office will help protect taxpayers from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.”

IRS-CI Special Agent in Charge Jose Gonzalez stated, “We do recognize the impact this type of crime has on the American public and therefore I will continue to increase my resources, in conjunction with the U.S. Attorney, to investigate and bring to justice those groups of individuals who willingly utilize stolen identities to defraud the government. Make no mistake, the filing of a false claims and any financial transaction in furtherance of this crime will be investigated. Together with our law enforcement partners, we will aggressively investigate identity thieves and their accomplices and will hold them accountable for their actions” – Source.

Elaborate Scheme Leaves 180 With Over $1 Million In Fraudulent Purchases

Amanda Miller — Tue, 17 Jan 2012 13:05:58 +0000

From How to Get Out of Debt

Charges were announced last Thursday against seven members of an identity theft ring that allegedly used stolen identities of more than 180 people at major New York City retail stores including Home Depot, Sears, Kmart and Kohl’s, among others. The ring of fraudsters resold merchandise and gift cards for a profit after purchasing them under account holders names fraudulently.

Allegedly, as part of the scheme, the member of the ring manufactured driver’s licenses using the stolen identity information to facilitate their impersonations of the legitimate cardholders at the stores.

The ring consisted of Phillip Smith, the ring’s leader, Melissa Morton, who allegedly impersonated female identity theft victims, Mahmoud Abdul Hussein, Ali Abdul Hussein, Fadal Abdul Hussein, three brothers who allegedly manufactured the fake driver’s licenses out of their storefront smoke shops in Greenwich Village; and Francis Hidalgo and Randy White, who are alleged to have resold the illegally obtained store credits or used them to buy materials for home improvement projects for their businesses.

Manhattan U.S. Attorney Preet Bharara stated that “Identity theft is an insidious crime – its victims are often unaware they’ve been robbed until days or weeks later when they are hit with credit card bills for mysterious purchases made by criminal impersonators. Identity theft results in hundreds of millions of dollars in losses to unsuspecting victims and businesses, and victims may have to spend countless hours just to get their lives back in order. As [these] arrests demonstrate, we hold no quarter for the alleged perpetrators of these crimes and will work with our state and federal law enforcement partners to bring them to justice.”

According to court documents, since the ring’s inception in 2008 or earlier, Smith allegedly obtained stolen identities, including the names and social security numbers of legitimate account holders at large retail chains.

After obtaining the stolen identities, Smith called the customer service numbers at the retail stores to confirm that the victims had credit accounts and to determine the available credit limit. Once that information had been obtained Smith had a fake driver’s license in the name of the account holder made (allegedly from the Hussein brothers) but with photos of the individuals who would impersonate them at retail outlets.

As alleged, Smith drove Morton, one of his co-defendants, to retail stores throughout New York, Connecticut, New Jersey, and Pennsylvania, where she charged expensive merchandise and gift cards to victims’ accounts. Morton would tell the checkout clerks that she had forgotten her store credit card and home but would offer the fake driver’s license and the victim’s social security number as proof of identity.

Smith then allegedly drove Morton to branches of the retailers in other locations where she returned the fraudulently acquire merchandise for store credits. Then, the credits were sold to other members of the ring, including Hidalgo and White, for approximately 60 percent of their face value. In turn, the items were then resold for usually 70 percent of their face value.

In other calls, Smith arranged to sell Home Depot store credit to Hidalgo for approximately 60% of the face value, and Hidalgo in turn allegedly found contracting businesses to buy the fraudulently-obtained store credits in return for cash. In still other calls, the Hussein brothers discussed the fake driver’s licenses they manufactured.

The Complaint charges Smith, Morton, Hidalgo and White with conspiracy to commit access device fraud, which carries a maximum term of five years in prison. The Complaint also charges Smith, Morton and the Hussein brothers with a separate conspiracy to produce fake driver’s licenses, which carries a maximum term of 15 years in prison. Smith and Morton are additionally charged with aggravated identity theft, which carries a mandatory two-year sentence if convicted – Source.

Friday The 13th: Unlucky For Fraudsters, Lucky For Potential Victims

Amanda Miller — Mon, 16 Jan 2012 20:48:50 +0000

From How to Get Out of Debt

Those that are superstitious often view Friday the 13th as an unlucky day. This past friday, January 13th, members of an identity theft ring received some unlucky news when they were sentenced to prison. Contrary to superstition, this was a very lucky day for future victims that could have fallen into their web of lies and deceit.

Two men, Richard Gaylon Conaster and Geoffrey Michael Wentzel, along with other conspirators were sentenced to prison after using personal information of dozens of victims to obtain fraudulent credit cards. Conaster and Wentzel both previously pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft and were charged with 124 and 65 months without parole, respectively.

Officers with the Houston Police Department (HPD) arrested Conatser and Wentzel at Wentzel’s home in October of 2010. Officers had recognized Conatser from the surveillance video of a Best Buy, where items had been purchased using a credit card obtained in the name of a victim.

At the home, police seized multiple laptop computers, flash drives, laminating machines, credit card magnet readers and other equipment used to make fraudulent forms of identification. Police also discovered the personal identification information of dozens of victims on the laptop computer and in credit applications from Kingwood Air Conditioning & Heating, which were also seized during a search of Wentzel’s house. Wentzel is a former employee of Kingwood Air Conditioning & Heating.

Conatser and Wentzel used the personal information and fraudulent forms of identification to open credit accounts in the names of at least 45 different individuals at more than a dozen different retail stores in the Houston and Dallas areas, including Kohls, Sears, Dillard’s, Home Depot and Bass Pro Shops.

After being approved for credit in the victims’ names, Conatser, Bird and other conspirators purchased thousands of dollars of merchandise, often being captured on video surveillance in the process. In some cases, Conatser then sold the fraudulently-purchased items to Wentzel, who in turn sold the items within days using his eBay account.

Law enforcement agents connected Conatser and Wentzel to Bird, who was previously arrested in July of 2010, during a traffic stop in Coppell, Texas. Police in Coppell discovered several items related to identity theft in Bird’s vehicle and a hotel room where Bird and other conspirators were staying. Among the items discovered by police were fraudulent identifications and other person information belonging to victims whose information was later discovered at Wentzel’s home.

In addition to their sentences, the two men were ordered to serve supervised release terms of three years following their release from federal prison. They were also ordered to pay restitution to victims totaling $142,197.88 – Source.

My Parents Stole My SSN When I Was a Kid. Now I Have Bad Credit. – Sophia

Consumer — Sun, 01 Jan 2012 03:06:57 +0000

From How to Get Out of Debt

My parents used my name and SSN number when getting cable and some other things. They have balances that have not been paid. I am only 19 and they did it when I was 14. Now my credit score is poor. How can I resolve this to fix my credit score.

How do I fix the credit my parents ruined?

Sophia

Woman Sentenced For Stealing Identities Of Student Loan Borrowers

Amanda Miller — Thu, 29 Dec 2011 22:39:03 +0000

From How to Get Out of Debt

Janika Fernae Bates, a resident of Alabama, was sentenced today in the Middle District of Alabama to 94 months in federal prison for stealing identities of student loan borrowers and providing them to a co-conspirator, who used them to file false tax returns, the Justice Department and Internal Revenue Service (IRS) announced.

On Sept. 23, 2011, a jury in Montgomery, Alabama, convicted Bates of identity theft, wire fraud, aggravated identity theft and conspiracy to make false claims for tax refunds.

According to evidence introduced at the five day trial, Bates obtained the names and Social Security numbers of student loan borrowers from the databases at her former employer and conspired to use the stolen identifying information to steal money from the government and from a bank. Several victims testified that they did not consent to the use of their names and Social Security numbers on tax returns and they testified that they did not receive any money from refunds generated from the false documents filed with the IRS. Evidence also revealed that Bates and her co-conspirator, Keshia Brayboy, fraudulently obtained refund anticipation loans from a bank predicated on the fraudulently filed tax returns. Brayboy pleaded guilty in 2009 to filing a false tax return and served two years in federal prison.

U.S. District Judge Myron H. Thompson also ordered Bates to pay $246,064 in restitution to HSBC Taxpayer Financial Services and $30,211 in restitution to the IRS – Source.

Im being scammed by a friend! – Gash

Consumer — Thu, 29 Dec 2011 17:48:29 +0000

From How to Get Out of Debt

I believe a friend of mine has become my identity theft, but i cannot prove it.

That is why i want to drive down to atlanta GA. and get a copy of my credit report, and is there somewhere i can take my computer and find out if its been tampered with and how i can secure it from future identity thefts.

Gash

East Coast Credit Card Fraud Ringleader Gets 12 Years In Prison

Amanda Miller — Wed, 28 Dec 2011 20:00:08 +0000

From How to Get Out of Debt

An identity thief was sentenced earlier this month to 12 years in prison for managing and east coast credit card fraud ring.

Jonathan Oliveras, used counterfeit credit cards encoded with stolen account information up and down the East Coast of the United States and has been sentenced for this crime. In addition to his 12 year prison term, Oliveras must also serve three years supervised release and has been ordered to forfeit $770,646.

Back in August Oliveras plead guilty to one count of wire fraud and one count of aggravated identity theft. In his plea, Oliveras admitted that he managed a ring of co-conspirators who used stolen credit card account information in New York, New Jersey and the Washington, D.C., area.

According to court documents, Oliveras sent payments to individuals he believed to be in Russia for the stolen account information. Oliveras then distributed the stolen account information, which was re-encoded onto plastic cards and used to purchase gift cards. The gift cards were used to buy merchandise that ultimately was returned for cash.

Federal and local law enforcement executing a search warrant in July 2010 at Oliveras’ apartment found, among other things, credit card encoding equipment and more than 2,300 stolen credit card numbers. According to court documents, credit card companies have identified thousands of fraudulent transactions using the account numbers found in Oliveras’ possession, totaling more than $750,000 – Source.

102-Count Indictment Charges 10 Ohio Men To Fraud, Fraud And More Fraud

Amanda Miller — Mon, 26 Dec 2011 17:00:06 +0000

From How to Get Out of Debt

On December 13, 2011 it was announced that a federal grand jury returned a 102-count indictment against ten Ohio men (ages ranging from 21 to 33) with crimes of conspiracy to commit wire fraud, mail fraud, bank fraud and aggravated identity theft.

Clifford J. Smith (“CJ”), Musa Nassar, Jon Foster, Donte Stewart, Billy St. Clair, Adam Bailey, Tyme Hammond, Kevin Moses, Kelvan Elkins, and Jason Martin engaged in a conspiracy to commit wire fraud by fraudulently obtaining cell phones which were then sold to innocent buyers on the internet through the E-bay auction website, with payments processed by PayPal and payable to the defendants from June of 2007 until June of 2011.

All of the defendants are charged with several counts of wire fraud, in addition to the charge of conspiracy. Clifford J. Smith, Musa Nassar, Donte Stewart, Jon Foster, Kelvan Elkins, and Jason Martin, are also charged with Mail Fraud. Clifford J. Smith, and Donte Stewart, are also charged with aggravated identity theft. The indictment also includes charges of Bank Fraud against Clifford J. Smith, and Jon Foster.

If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum – Source.

One Time Is Too Many With Identity Theft

Guest Post — Wed, 21 Dec 2011 19:00:56 +0000

From How to Get Out of Debt

One time is too many when identity theft is involved, and two times in a week a big flashing warning sign that something is seriously wrong. Last week my wife received a text message saying our cell phone bill was $1,000 this month! Of course that proceeded the panicked phone call that I received from her immediately afterwards. After spending almost thirty minutes on the phone with my cell phone company, it was determined that someone had illegally used my account to order a brand new iPad2 tablet. I was incredibly impressed by the way my cell phone carrier, Verizon Wireless, handled the whole situation.

I would have let it go as bad luck and just changed my passwords and other security features until I received an email from American Express a couple days later. They had detected an irregular purchase on my charge card and requested that I contact them before they approved the charges. Once again I am completely blown away by the steps that companies such as American Express and Verizon Wireless and the excellent customer service they have shown. This continues to show that you should do business with outstanding companies with good reputations. I can only imagine what would have happened if I had used a fly by the night type of operation.

Warning Signs That You Are A Victim Of Identity Theft

You do not have to wait for a text message or an email from your credit card companies to find out that you are a victim of identity theft. Below are a few of the classic warning signs of identity theft.

You are unexpectedly denied a loan or credit card
You receive collection calls for accounts that you never opened.
You notice accounts that you never opened on your credit report.
Your fail to receive mail, credit card statements, or bills.
Your credit report contains inquiries from businesses you don’t recognize.

How To Protect Yourself From Identity Theft

You need to be more proactive in protecting yourself from identity theft. After American Express emailed me that my account had been compromised, I immediately enrolled in LifeLock and their identity theft protection. I had been thinking about joining LifeLock for years, but these two incidents put me over the edge. I really love the service that LifeLock has already provided. They automatically request your credit reports, disenroll you from the spam mailing lists, enroll you in their proactive identity theft protection, internet monitoring, address monitoring, loss wallet protection, and others. Life lock also offers a $1 million identity theft guarantee.

Are there other warning signs for identity theft that I missed?

Author: This article was contributed by Hank Coleman from Money Q&A, a personal finance blog that helps answer your money questions on the way to financial freedom.

Source: One Time Is Too Many With Identity Theft

Former Inmate Sentenced To More 12 Years For Schemes From Behind Bars

Amanda Miller — Thu, 08 Dec 2011 17:47:36 +0000

From How to Get Out of Debt

And AGAIN, a criminal thought he could commit the same crime he had already committed and gotten jailed for. Former inmate, Danwine Dewayne Renard, was sentenced to a 144 month term in prison following his plea of guilty to participating in an identity theft scheme while incarcerated. Renard has also been ordered to pay 122,943.72 in restitution and a $49,000 forfeiture judgment. He will also serve a five year supervised release.

In July of 2011, Renard entered a guilty plea to four counts superseding indictment charging conspiracy to commit mail, wire and bank fraud; aiding and abetting bank fraud; AND two counts of aiding and abetting aggravated identity theft.

At the time of his plea, Renard entered into a factual stipulation which indicated that beginning in approximately July, 2008, and continuing until on or about November, 2010, in Madison and St. Clair Illinois Counties, and elsewhere, Renard, acting with others, including Selena Marie Bradford (aka Selena Renard), engaged in a scheme involving identity theft, fraudulent identification documents, mail fraud, wire fraud, and bank fraud.

Renard’s role in the conspiracy primarily consisted of providing advice, guidance, and encouragement via interstate prison phone calls and by way of U.S. Mail to his co-conspirators, including Bradford. Bradford would obtain genuine state identification documents in the names of real individuals, and she and a co-conspirator would open bank accounts in those names. The balances of the fraudulently opened bank accounts would be inflated by depositing checks from other fraudulently opened bank accounts. Then funds would be withdrawn, often by way of ATMs, though there were insufficient funds to cover the withdrawals. Often, insufficient funds checks would be passed in order to obtain merchandise.

A co-conspirator would produce fake payroll checks drawn on some of the fraudulently opened accounts and would cash them at various locations. Funds obtained during the scheme were used for a variety of purposes, including paying living expenses, paying costs associated with perpetrating the scheme, purchasing merchandise, and for funding Renard’s prison trust account. As detailed in the factual stipulations, during several transactions, to include the acquisition of food stamp benefits in a victim’s name, Renard was on the jail phone with Bradford, providing her encouragement and guidance.

Renard has been in federal custody since his arraignment on December of 2010. Bradford is currently serving a 132 month federal sentence and was ordered to pay restitution in the amount of $122,943.72 as a result of her role in the scheme – Source.

McDonald’s Manager Selling Stolen US Citizen Identities To Employees

Amanda Miller — Mon, 05 Dec 2011 16:00:09 +0000

From How to Get Out of Debt

A former manager of a McDonald’s restaurant in Savannah, Georgia was sentenced last month to 32 months in prison for her role in a scheme to sell the stolen identities of United States citizens to employees within the McDonald’s restaurant chain.

The former McDonald’s manager, Eva Ramos’, guilty plea and sentencing hearings revealed that Ramos, with the assistance of others, knowingly provided the identities of United States citizens to illegal aliens applying for work at Savannah area McDonald’s restaurants. Ramos sold some of the identities for a profit.

In addition to Ramos’ 32 month sentence she has also been ordered to pay a fine of $1,5000 and has to serve 3 years supervised release.

United States Attorney Edward J. Tarver said, “Our office will work with our federal partners to protect unknowing United States citizens against identity theft which is a rapidly growing problem across our country. Victims of identity fraud suffer a great deal and the effects of such fraud can be long-lasting.” – Source.

Ba-Da-Ba-Ba-Ba …. I’m scammin’ it!

Financial Hardship Installment Loan. – Tracy

Steve Rhode — Sun, 04 Dec 2011 16:39:09 +0000

From How to Get Out of Debt

“Dear Steve,

I became disabled in 1993, and opened a bank account, purchased lfe insurance with Union Fidelity and 17 years later, with an immaculate payment record, and 750 credit record, the process for an unauthwith Unionorized draft on my bank, has crippled me, as I have not been able to work, and for two months my direct deposit did not happen (procedure for identity theft) but the bills came. The worst being a credit card ‘line of credit’ for 15000 which disapeared literally from the computer, and when the branch manager said not to worry, it reufaced with a 1000/min payment in collection and no life insurance, NSF hell. Filed with the OCC, spent a year tring to get someont to understand that I only needed around 2000 to get back to where I was financially, so I can pay off the 5 payday loan companies I juggled for a year to survive (gold and platinum) member and my 340 over flow on my checking that I always pay and reuse to stay afloat. So I’m sure I would not fail in making a payment of around 200-250/monthly like I

used to. I can’t get the help though., of course debt to income ratio and 605 (just got unlocked and in process of cleaning due to some form of identity theft of my ss#and the unauthorized draft) Am I stuck forever juggling and sweating bullets every month, or is there optional installment loan for persons like myself to get a second chance due to a financial hardship

Tracy”

The Answer:

Dear Tracy,

The short answer is there is not such a loan product. Even the unsecured lenders out there like LendingClub.com and Prosper.com that are more lenient have an approval process that is credit score based.

I know it might be water under the bridge but when you discovered the unauthorized withdrawal did you happen to notify your bank quickly? There are protections from liability for such discoveries. Read What to Do About Unauthorized Withdrawals from a Bank Account.

So am I right in assuming that your only income is disability related income and that you have little in the way of assets?

There are other ways of dealing with this situation other than yet another loan. You may want to use the free How to Get Out of Debt Calculator to review your options.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Mother May Have Opened a Credit Card in My Name. – Paige

Steve Rhode — Wed, 30 Nov 2011 21:37:00 +0000

From How to Get Out of Debt

“Dear Steve,

I’m only twenty years old. I have had one loan with a secure agency.

My mother has awful money problems and has went as far as filing my taxes and not telling me to get my money.

With that being said I have gotten two phone calls this month from two different numbers talking about a credit card. The first one was November 7th From (973)409-3326. It said press one for more information I was busy when I answered the phone so I missed most of what it said

When I pressed one and I was on hold for 30 minutes! I hung up and ignored it thinking it was a prank or something. Well today I got another phone call from (360)529-6105. It was an automated one like the last. This time it said we have sent plenty notices to your residence (my mother’s house) this is your last notice never said what kind of notice. Then it said press one to speak with our freindly customer service. I did and it ask for a password then press pound I hit pound. The third time I hit it they hung up! When I call back it’s a dead line

What do I do!!?! I wouldn’t put it past my mother to have a card in my name.

Paige”

The Answer:

Dear Paige,

I would not be surprised if that happened.

In cases like this I recommend getting a consolidated credit report, ASAP. The consolidated report lists all three credit bureaus on one report and since each credit bureau may not report the same information you need to look at all three.

If you have an account in collections is will most likely be reported on at least one of the credit reports. More importantly you need to look to see if you have accounts opened that you don’t recognize. Get the consolidated credit report, look it over, and let me know what you find, in the comments below.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Three Plea Not Guilty In Skimming Scam Across Southern New England

Amanda Miller — Wed, 30 Nov 2011 13:00:54 +0000

From How to Get Out of Debt

Three New York residents were charged last week with an indictment charging them with conspiracy, bank fraud and identity theft offenses related to an alleged participation in an ATM “skimming” scheme across southern New England.

Gabriela Graham and two citizens of Turkey, Mehmet Aydin and Ahmet Cilek, were each charged with one count of conspiracy to commit bank fraud, six counts of bank fraud and six counts of identity theft.

The indictment alleges that, between February 2011 and July 2011, Aydin, Cilek, Graham and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at 11 banks and one credit union in Connecticut, Massachusetts and Rhode Island.

The devices were able to capture the information encoded on the magnetic strips of bank cards used by ATM customers. The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts.

The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw funds from the customers’ accounts.

Cilek has been detained custody since his arrest in June of 2011. While Aydin and Graham were arrested on federal criminal complaints on November 2 and November 4, 2011, respectively. Both are detained in federal custody.

The charges of conspiracy to commit bank fraud and bank fraud carry a maximum term of imprisonment of 30 years and a fine of up to $1 million, on each count. The charge of aggravated identity theft carries a mandatory term of imprisonment of two years, which must be imposed consecutively to a sentence imposed on any other count of conviction.

The three have entered a not guilty plea to the charges – Source.

If At First You Don’t Succeed, Commit Fraud and Fail Again : Defrauding From Behind Bars

Amanda Miller — Tue, 29 Nov 2011 18:14:27 +0000

From How to Get Out of Debt

Three defendants have been sentenced to federal prison on charges of bank fraud and aggravated identity theft; one man committing fraud from prison.

According to United States Attorney Sally Quillian Yates, the charges and other information presented in court: In late January 2011, Samantha Johnson stole the wallet of a 93-year-old woman while she was shopping at a retail establishment in Conyers, Georgia. There Johnson found the victim’s debit card for checking accounts at Georgia United Credit Union along with the personal identification number (PIN) for her debit card and account numbers and personal information that she would need to obtain information over the telephone about her accounts from the credit union.

Johnson shared the victim’s debit card number, PIN, account numbers and personal information with Danyez Hines and Carlos Garcia. At the time Garcia was incarcerated at Valdosta State Prison, having been convicted of identity theft and fraud in which he targeted elderly victims.

Sounds like a real “go-to” person, eh? Nothing like looking for help in committing a crime than with a person who had previously failed at getting away with this crime before. Criminals are so smart ::rolls eyes::.

Unfortunately, incarceration did not stand in the way of Garcia participating in additional crimes. Johnson and Hines were able to communicate with Garcia through a cell phone that had been smuggled to him in the prison.

Which makes me wonder, how in the world would one keep a cell phone charged in jail?!

Using the victim’s account numbers, debit card, PIN, and personal information, the defendants attempted through various means to obtain the more than $120,000 in funds that were in the victim’s accounts at the Georgia United Credit Union. Garcia, using the cell phone smuggled to him in the prison, used the debit card number and PIN to wire transfer money from the victim’s account to his prisoner account at Valdosta State Prison.

Hines and Johnson ordered new checks for the account and directed that they be sent to Hines’ grandmother’s address. Once the checks arrived, Hines forged the victim’s signature on checks and cashed them or gave them to others to cash for him. Using the personal information obtained from the victim’s wallet, the defendants called the credit union, posed as the victim and transferred funds between accounts.

When the victim and her family discovered the fraud, they reported it to the credit union. The credit union froze the victim’s accounts and deactivated the victim’s debit card before a substantial loss occurred.

I’m sure the wiring to a personal PRISON account and the mailing of checks to a personal address didn’t give the police too much of a chase in this case.

Garcia, the already once failed criminal, fails yet again and was sentenced to 6 years, 9 months in prison to be followed by 5 years of supervised release and ordered to pay restitution of $3,104.09.

Hines was sentenced to 2 years, 10 months in prison to be followed by 5 years of supervised release and $1,719.75 in restitution.

Johnson was sentenced to 5 years, 10 months in prison followed by 5 years supervised release and $3,104.09 due in restitution.

Folks, DO NOT KEEP YOUR PIN NUMBERS AND PERSONAL INFORMATION IN YOUR WALLET. That’s right, I went all CAPS on y’all.

Newspaper Deliveryman Makes Amanda Miller’s List Of “People I Wouldn’t Suspect Of Fraud”

Amanda Miller — Mon, 07 Nov 2011 21:19:36 +0000

From How to Get Out of Debt

Amanda Miller’s list of “People I Wouldn’t Suspect of Fraud” just keeps on growing week in and week out! Amongst the already listed TSA employee, postal carrier, United Nations employee and firefighter I now introduce to the list: a newspaper deliveryman.

A guilty plea was announced last week by Andre Tyler, a Maryland newspaper deliveryman, to unauthorized use of an access device and aggravated identity theft.

According to his plea, Tyler was a newspaper deliveryman for WilCan Services, a delivery contractor for a Washington newspaper, whose route included addresses in the Damascus/Laytonsville area of Montgomery County, mainly off Route 108 in Maryland. From December 2010 until his arrest on May 19, 2011, Tyler occasionally took mail from mailboxes along his route, kept the credit cards and threw the other mail away. Tyler would attempt to activate the stolen credit cards and if successful, use the cards for his personal benefit until they stopped working.

On at least one occasion, after the credit card company had suspended the stolen card Tyler called the company claiming to be the account holder and succeeded in having the card re-activated.

The total loss as a result of Tyler’s fraudulent use of the access devices was between $5,000 and $10,000.

Tyler faces a maximum sentence of 15 years in prison for the unauthorized use of access devices and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for January 30, 2012 at 2:00 p.m. – Source.

True Cradle Robbers – Stealing Credit From The Cradle

Amanda Miller — Mon, 17 Oct 2011 19:34:09 +0000

From How to Get Out of Debt

It’s often not a parent’s first thought to check the credit report of their minor child, however, it may now become a necessity. Not because a child may fraudulently be using credit without their parents’ knowledge but because scammers may have stolen their unused Social Security number and identity.

The Better Business Bureau (BBB) put out a warning last week that parents should take notice to their children’s credit reports well before the age of the child being able to use credit to make sure their identity hasn’t been stolen.

This is a crime that is growing in the United States; a scammer uses an inactive Social Security number found online and sells them to people in an attempt to establish fan credit. The stolen numbers often belong to children well below the age of credit eligible years.

“Protecting a child’s innocent, clean record is something that every parent needs to do.”

According to the BBB press release about this matter:

“Scammers find it easy to target children – infants even – because parents are less likely to check the credit report of their 3-year-old child. What makes this crime so much worse is it often goes unnoticed until years after the fact when the child goes to make his or her first credit transaction.

One report put out by CyLab, shared a story of a 17-year-old girl who is $725,000 in debt because her Social Security number was stolen and linked to eight different suspects. The suspects opened 42 accounts including mortgages, auto loans and credit cards. Several bills were in collections” – Source.

The BBB is holding multiple Shred Day events throughout Central Texas between October 15 and 29, 2011. The events are in an effort to recognize and learn the need for consumer education and protection. The events are free and offer document shredding and paper recycling on the spot along with advice for protecting yours (and your child’s) identity. Consumers can bring confidential documents, phones, compact disks, floppy disks and old computer parts to be shred and recycled onsite for free.

I Went to Jail for Larceny Committed by Someone That Stole My Identity. – Kam

Steve Rhode — Wed, 05 Oct 2011 16:42:00 +0000

From How to Get Out of Debt

“Dear Steve,

I had a “friend” steal my info years ago (along with ex i’m hiding from) she has used it through the years! I had to bankrupt $50k + and still haven’t been able to get apts, credit, house, nothing! I recently got a suspension on my D.License because of her.. She murdered some kid, and was part of id theft ring. So i finally got my lic. back, and letter from courts that it wasn’t me! But have been trying to get credit, etc back over the years, they wouldn’t even do a police report! I finally got that done, and it’s been about 10+ years or so! SSA says they can’t give new ssn, and because of her using my info i now have a felony for larceny! They said to contact all the creditors one by one.. that’s impossible! I ended up in prison because of her, and the lawyer didn’t do anything to defend me! It took 3 years away from my children. I now keep to myself, to avoid people of that kind.

There’s so much CRAP on my credit, recent, and older stuff that’s been re-dated. over and over again. I tried to prove to the apt complex that she used my name at.. that it wasn’t me with no luck.. she gave my d.L. info to a state trooper, and they took it! She looks nothing like me! Now she’s deceased and my info is still out there! There’s no help for ID THEFT VICTIMS! What can i do to get a fresh start for me and my family?

What can i do to get a fresh start for me and my family? How can i build credit, when i have no job because i can’t pass the background check, and have little money? Please, any help would be appreciated. I’m not getting any younger.

I now have a new D. License, and a name change that i never used (sealed) with the courts..I have seen my name change name on my cbi…am i screwed?

Please help!

Kam”

The Answer:

Dear Kam,

Well if there is any good news in this it’s the she won’t be doing this again.

The best place to start on this would be with a consolidated credit report. The consolidated credit will show you what each of the credit bureaus as showing. It will also give you instructions on how to post a message about the past identity theft.

Once you dispute any information appearing on your current report it will be verified. If you have information that is not removed following that process, then contact the creditor directly. If they will update it on their end it will stop the reporting altogether.

Rebuilding good credit is a relatively simple process. Just follow this guide.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Maryland Fraudster Gets 6 Years In Prison For Bank Fraud And Identity Theft Scheme

Amanda Miller — Mon, 03 Oct 2011 04:30:02 +0000

From How to Get Out of Debt

After being convicted on July 5, 2011, Vicente Bilora Mbenga of Maryland, has been sentenced to six years in prison, three years supervised release after and an owed restitution of $27,218.06 for committing bank fraud and running an identity theft scheme.

According to court documents and evidence presented at Mbenga’s trial, he participated in a scheme in which co-conspirators contacted bank customer service representatives by telephone, posing as bank customers and requesting that the addresses on the customers’ bank accounts be changed to addresses controlled by members of the conspiracy. Once the address was changed, members of the conspiracy requested that the bank issue replacement debit cards and checks and mail them to the “new” addresses.

Mbenga operated his fraudulent schemes by cashing postal money orders with a debit card drawn on the account of one of the victims in the scheme. The card was obtained by posing as an account holder that needed a replacement card but instead of the card being sent to the actual account holder it was sent to an address in Hyattsville, Maryland. Vicente Mbenga was the payee of all of the postal money orders cashed.

During the Summer 2009, Mbenga recruited other individuals into the scheme and gave them postal money orders to cash. In each instance, Mbenga would drive with them to a post office, present them with a money order which he then directed them to cash. Mbenga would wait outside the post office while the individual was inside cashing the money order and would take the money from them immediately once they left the Post Office. In each case, the postal money order had been purchased using a fraudulently obtained debit card on a victim’s account. Often, those debit cards had been mailed to addresses to which Mbenga had access or addresses near his residence. Mbenga was arrested on August 3, 2009, outside a bank where a co-conspirator was attempting to cash a victim’s check. The co-conspirator was also arrested. At the time of his arrest, Mbenga had in his pocket a debit card on the victim’s account, the checkbook from which the victim’s check had been torn, and a photocopy of a genuine check on the account on which Mbenga had practiced the victim’s signature.

Over 20 people were victimized in this scheme. Compromised accounts contained over $1 million in available funds from multiple financial institutions. The actual losses to banks and individual victims totaled $92,783.35.

Mbenga also obstructed justice after his arrest when he stole part of a co-defendent’s cooperation plea agreement and took it back with him to prison where it read it aloud and outed the co-conspirator as a cooperator. The co-conspirator was then subject to harassment and threats prior to his testimony.

Seven defendants pleaded guilty to their roles in the scheme and another was convicted at trial. All have been sentenced. A ninth defendant is currently serving a sentence on unrelated charges in Guyana. He is expected to be returned to the United States to face charges related to this scheme, upon completion of his sentence. A tenth co-defendant, Allen Theodore Smith, was acquitted by a federal jury.

I don’t understand when and why people think scamming is a good idea.

Press Release

When I Was in the Navy Someone Used My Name and Social Security Number to Buy a Bowflex. – Roberto

Steve Rhode — Tue, 31 May 2011 21:41:05 +0000

From How to Get Out of Debt

Someone used my name and I’m now getting informed about me owing for a bowflex that I never ordered and I didn’t even live at the State it was sent to.

I have been in the Navy since 2003 to 2007 towards the end of my enlistment someone used my social and ordered a Bowflex under my name and credit from HSBC. From what I’m understanding it was ordered back in May 2007 for an address I didn’t live at. And I didn’t move back to NJ from FL until November 07 and it wasn’t to that address. Now some creditor name Pressler & Pressler bought the debt and now they sent me a letter to an address I haven’t lived in over a year and they got my bank garnished for 500 out of the 4,850 that I sopposedly owe. I never agreed to pay them back anything and even told them I wasn’t living hear in NJ at that time nor have any knowledge of that order. They refused to lift the order to pay and its now on my credit report. What can I do to get this out of my debt and get my money back from them.

Roberto

@GetOutOfDebtGuy

The Effectiveness Of Tearing Up Unwanted Credit Card Offers

Amanda Miller — Mon, 25 Apr 2011 18:58:24 +0000

From How to Get Out of Debt

Ever wonder how effective tearing up an unwanted credit card offer is?

Many will just tear it in half, or even tiny pieces, throw it in the garbage and never think of it again. However, how easy would it be for a criminal to get a hold of your garbage and tape it back together? So many of us think, “that will never happen to me”.

One man decided to put this to the test. He tore up an offer into tiny pieces, shuffled them around and then attempted to put the application back together. The repositioning and alignment of the application took time but was not impossible.

He grabbed some Scotch tape and taped the bits back together. He admits it wasn’t perfect but it was legible.

He decided to take this test one step further by filling out the application and sending off for the credit card. He ticked the “changed my address” box and wrote in his parent’s address, since a criminal wouldn’t opt to have the stolen card sent to your actual address. He then wrote in his cell phone number instead of his land line so he could call from that number to authorize the card.

He then popped his mangled, taped up credit card application into the mail.

He visited a few sites, mainly the Chase website and the Federal Trade Commission to see what they had suggested to do with unwanted credit card applications. Both sites recommended tearing up an application as a feasible method to dispose of these mailings. He became wary if his makeshift attempts to simulate a thief would prevail.

However, low and behold, he received a call from his dad one day saying he had received some mail. He headed over to find his new Chase Mastercard waiting for him at his father’s residence. He activated the card via his cell phone and had a brand new credit card.

It was THAT easy.

Imagine the damage that could be done by a thief rummaging through your garbage. All of that being said, you should probably go buy a shredder. Like, yesterday.

To see the original source and more pictures please click here.

My Identity Was Stolen and Collection is Trying to Get Money From Me That I Never Owed. – Barbara

Jeremy Golden — Mon, 18 Apr 2011 17:30:49 +0000

From How to Get Out of Debt

“Dear Jeremy,

Indenity theft 10 years ago 3 cards.

(I had a house for sale in a another city. They got my mail. They changed my address back to that house)
One I paid off. Someone used my card I already taken out. and I could prove that I did not use it. I was teaching in a classroom in City B while my card was being used in city A. they refused to dismiss. My address had been changed back. $5000 racked up in thirty days.

2nd card $5000(I did not open), I cancelled explained, and I did not owe

3rd card $5000(I did not open)let them know etc etc. Credit card company sold it over and over and are still pursuing. Now $19000

Over and over the first 3 or 4 years, explained documented, etc. I finally just ignored it.

Any thing to fear, anything I can do about third card?

Barbara”

The Answer:

Dear Barbara,

When you discover you are the victim of identity theft the initial steps are to file a police report and then check your credit report.

You should also place a fraud alert on your credit report and dispute any accounts that are not yours with the credit bureau.

The next step is to dispute each fraudulent account with the collector. Be sure to send a dispute in writing via certified return receipt requested and include a copy of the police report.

Hopefully, this will clear up the mess. If not, there are good consumer protection statutes that protect victims of identity theft, including the FDCPA.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

If you have a debt collector question you’d like to ask just use the online form.

I Was Sued by Rubin & Rothman and My Bank Account Was Seized for a Credit Card They Say I Took Out When I Was 12 – Bren

Steve Rhode — Sat, 16 Apr 2011 13:58:48 +0000

From How to Get Out of Debt

“Dear Steve,

I just had a legal hold put on my bank account. Upon contacting Rubin & Rothman, LLC., who issued the “Information Subpoena and Restraining Notice”, I have come to find out that they are representing a debt collection agency that alleges that I owe a debt from a credit card opened in 2000.

This is clearly an identity theft issue. First, I was 12 years old in 2000. Second, the name they had on file with my social security number is not my name (they have the last name correct, but not the first… and I know no one by this name). Lastly, I’ve never lived at the address they listed. Moreover, I lived in a completely different city, 45 miles away. As far as I can tell, the only correct information they have is my social security number.

After explaining this to the debt collector over the phone, she accused me of lying and told me that if I wanted to work this out, I would have to send her copies of my birth certificate, social security card and give her personal information (where I work, currently live, family members). Knowing that they would most likely use this information against me, I did not give them anything.

My questions are as follows:

1. What do I need to do to prove that this is clearly a case of identity theft?

2. What legal actions can I take in order to get my money back?

3, 4, & 5. I have copies of the subpoena and the court documents from when this mystery person was taken to court. But I was never served! Having my bank account frozen was the first time I had heard of ANY of this. On the back is the court documents is an affidavit of service. They noted that they affixed a copy of the summons to the door of this address listed (that I never lived at) and mailed a copy to this same address. The document claims that the address was confirmed by a neighbor, which cannot be true because this person does not EXIST. Nothing else was filled out.

So, my questions are (3) what is the minimum requirement needed for proof of service? (4) Did they meet these requirements (legally)? Lastly (5), do I have any chance of getting this thrown out due to improper service?

Bren”

The Answer:

Dear Bren,

If this is the first you’ve discovered about this identity theft problem I would do two things immediately. First, you need to get a copy of your consolidated credit report and look at all three credit bureaus. The consolidated credit report link is for the report I use myself and prefer.

What you are looking for are other accounts that might have been opened in your name as well but have not risen to this level.

Next, I want you to contact your local police department and tell them you want to file a police report for identity theft. Tell them about the current account and any additional accounts discovered on the credit report. You will need this police report and report number to provide to the creditors and collectors to prove you are a victim of identity theft.

For those accounts that are not yours on the consolidated credit report, notify the individual credit bureaus, identified in the report, and tell them you were a victim of identity theft.

As far as the suit goes it sounds like you have a real issue that the law firm and collection company did not taking proper action to identify the correct person.

I’m going to ask the resident debt collection expert to comment on this article and give us some guidance on what to do next. The good news is this will get fixed and reversed. The bad news is you are going to have to invest a bit more time to do it.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Was a Victim of CCDN, Identity Theft, and Illness. What Now? – Kim

Steve Rhode — Mon, 21 Feb 2011 15:15:01 +0000

From How to Get Out of Debt

“Dear Steve,

My present husband and I have been married since 2001. When we got married we merged our 2 households resulting in 8 children to care for. By 2003 we had collected $100,000 in unsecured debt. We were able to resolve this debt with the help of my father. My father loaned us the money and then wrote it off as a gift every year until it was repaid. His reason for doing this was that he could see that we were drowning and I was in very bad health, unsure if I would be able to continue to work.

We continued to pay on the secure debt, regularly. After paying off the credit card companies I closed all but 2 accounts. As a result of paying off this unsecured debt, my credit rating improved dramatically. We began receiving offers for additional credit cards. My health continued to be an issue for another 2 1/2 years, until I discovered what the problem was and then I had to enter into a program to manage it. I have to admit that I did not pay much attention to where our money was going and whether we were living within our means. I simply paid the bills and when there wasn’t enough money for the things we needed, those were changed to the credit cards.

Late in 2005, I became aware that someone was trying to open credit cards in my name. I reported the attempts to the FTC and began to watch my credit reports. I thought I stopped the attempts at ID theft.
In 2006, I made a decision to take a year off of work in order to get my health under control. early in 2007, I became very aware that we were once again in trouble. So, I consulted a Bankruptcy Attorney. I was told that it was too soon to file Bankruptcy and that I needed to let my credit cards go to collections before I filed. Even at that point I knew that we would not be able to handle the debt. I also wasn’t sure that I would be returning to work.

By 2008 I was being harassed by a number of collection companies and things were very stressful. I decided that the best thing to do was to get involved with a debt elimination company-CCDN, I did so early in 2009, to the tune of $7000 that I borrowed from my 403b. Initially, everything looked pretty good, but then I began to notice I was doing all the work and while the collection companies were not calling the ones that I had dealt with were passing the debt to other companies.

The people at CCDN kept saying to continue sending notices to cease and desist. In the process of filing my own notices, I finally looked at the debt statements from back 2003 to 2006 and noticed that there was more activity on those credit cards than I remembered. I shared my suspensions with the support team at CCDN only to be placated with a weak assurance that we would take care of that when they help me to re-build my credit.

Early in 2010, I discovered that I needed surgery and was going to have to be off work for another extended period of time. I attempted to resolve some of the outstanding issues with CCDN only to discover they had vanished.

After doing some research, I discovered CCDN was a SCAM program and that I had been duped.

Now I am sitting here with a PILE of collection notices, again. I am afraid that someone is going to sue me and that I will have to start trying to repay all these people at once, when we simply don’t have the means to do this. We have been living on an all cash basis since 2006, when I stopped paying the credit cards. We do alright, but there isn’t much left at the end of the month. I do feel like our spending is much more under control, but I do not believe that we could take 6-7 credit collection companies attaching my wages.

In addition, I learned that in 2009 my father joined my brother and myself to his irrevocable trust, we now earn money from this trust, but don’t get to touch the money, although we pay the taxes on the income that is reported.

As I am aware that you don’t believe that debt settlement or debt management programs are very successful, is my best choice bankruptcy at this point? Will I even be allowed to do this if my income tax reports are declaring additional income on a K-1? How do I sort out what is my debt and what is fraudulent, or do I just ask to be forgiven all the debt? It is a sure bet that the person (s) that stole my identity are beyond reach at this point, is there some concession for what was charged in my name?

Kim”

The Answer:

Dear Kim,

Well hopefully your health has stabilized or improved and there is a silver lining in there someplace.

To address identity theft you need to notify the credit card company at the time it is noticed and file a police report to document your claim. The credit card company will begin an internal investigation and you will not be responsible for those charges. It is not clear to me if you did that when it appeared. You said you contacted the FTC, but that is informational only and the FTC does not resolve individual issues.

I’m sorry to hear you got snagged by CCDN. Many people wound up in bad shape as a result of that debt relief company.

You eluded to the fact you had looked into bankruptcy in 2007 but you were told it was too early to file. So that makes be believe you had previously filed. Has enough time now passed making you eligible to file again?

The bottom line is that some intervention is going to be required. I would suggest you first consult with a local bankruptcy attorney licensed in your state and then come back and post an update in the comments. Let’s approach this situation in stages. So that would be step 1.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I’m Being Sued for a Capital One Account My Wife Opened in My Name. – Gerald

Steve Rhode — Mon, 14 Feb 2011 17:26:37 +0000

From How to Get Out of Debt

“Dear Steve,

Being sued by Capital one for $6500 and have 21 days to answer. My wife opened this account in my name without my consent or knowledge. She was making payment without my knowledge until I lost my job in the automotive and she wasn’t able to make any more payments and the ugly truth came out! They want their money, but I can’t pay, and I didn’t even open the account!

How do I answer the Summons and Complaint, since I had no knowledge that a card was opened in my name.? Do you think Capital One would be more likely to SETTLE because of this, as I don’t want my wife going to jail, and she has no income that Capital One could get from her? I live in MIchigan. Thank you for your time!

Gerald”

The Answer:

Dear Gerald,

First off, your wife is not going to go to jail.

The bad news is you’ve been a victim of identity theft. I would suggest you immediately get a copy of your consolidated credit report and make sure there are no other surprises to discover.

Your choices at this point are to file a police report against your wife and notify Capital One of the situation and they will go after her. She may be facing criminal charges, but again, no jail time.

Otherwise, you can pay the debt off. If you settle the debt then you will be left with a bad mark on your credit report for the debt forgiven. You could also repay the debt using a credit counseling program but the payment would be just about the same as the regular payment which you unfortunately can’t afford.

The only way to kill this debt without having your wife face possible criminal charges is probably bankruptcy.

If you want to explore the settlement option then contact one of the AACC member settlement companies. These are folks I trust.

Oops, one more option. You could always do nothing, let Capital One sue you and they’ll probably go for a judgment which you can’t pay at this time. When things begin to look up you could repay the judgment at that time or pursue bankruptcy to kill it.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

It’s Cheaper to Buy Fake Credit Cards Than Debt Settlement Leads

Steve Rhode — Fri, 21 Jan 2011 20:40:07 +0000

From How to Get Out of Debt

I suppose this story has more to do with the issues surrounding a free market and supply and demand than anything else. Otherwise how can you explain the reality it is cheaper to buy someone else’s credit card details than it is for a debt settlement company to pay for leads or new clients.

A report out by Panda Security reveled the current black market rates for stolen credit and debit card information.

Compare these rates versus what some debt settlement companies are paying for leads and new clients. Just yesterday the FTC reveled in it’s action against a debt settlement lead generator that the discount rate for leads was about in the $60 range. Other companies are offering to pay $500 to $2,000 for closed debt relief deals.

These black market cards are not just fake knockoffs. They come with the full personal details of the cardholder. – Source

Kind of crazy to think that identity theft is cheaper to get in to than debt debt sales isn’t it?

@GetOutOfDebtGuy

Can I Be Sued for My Husband’s Debts? – Linda

Steve Rhode — Mon, 22 Nov 2010 21:26:43 +0000

From How to Get Out of Debt

My husband and I have legally been seperated for three years; May of 2010 my husband rented a tool from home depot in my name, yet he signed for it. Home depot has been harassing me for payment, I explained to them I never rented such a tool. I requested that they review the video of the transaction so I could prove that I was not present during the transaction. The manager stated that he and his staff reviewed the video and some young lady presented them with my identification. I requested that he meet with me to determine if I am the young lady on the video, he finally agreed to meet with me, but is not willing to show me the video.

Steve, I don’t beleieve that anyone showed them any identification. I think that my husband gave them an adress and my information came up in their system. The manager doesn’t want to admit that there is an error on their part.

Can I sue home depot for harrassment? Am I entitled to see the video? Can they sue me for something that my husband signed for although he and I have been legally seperated for three years? What should I do?

Linda

@GetOutOfDebtGuy

Legal Assistance Guide for Identity Theft Victims

Steve Rhode — Thu, 21 Oct 2010 20:19:06 +0000

From How to Get Out of Debt

The Federal Trade Commission has created a guide to help attorneys and victim advocates provide legal assistance to identity theft victims.

Geared toward resolving issues out of court, the Guide for Assisting Identity Theft Victims describes how advocates can intervene with creditors, credit reporting agencies, debt collectors, and others, as well as self-help measures that victims can take. Victims may need an advocate’s help in a variety of situations: their age, health, language skills, or income prevents them from making effective disputes; they’re being pursued for someone else’s debt; they face uncooperative creditors or credit reporting agencies; or their case is complex.

Step-by-step instructions provide best practices for recovering from identity theft involving financial accounts, and incorporate victims’ rights under various federal statutes. The guide also addresses recovery from less common forms of identity theft, such as when a thief commits tax fraud, or obtains a federal student loan or medical services using stolen information. It includes sample dispute letters for victims and sample attorney follow-up letters to address matters victims are unable to resolve. It also provides checklists, an ID Theft Affidavit, a Victim’s Action Log, federal statutes and regulations, consumer education material, and links to online resources.

The free Talking About Identity Theft publication has a lot of good information in it.

Guide Overview
Identity Theft: An Introduction
- What is identity theft?
- How.do.thieves.steal.an.identity?
- What do thieves do with a stolen identity?
- How can you find out if your identity was stolen?
- What should you do if your identity is stolen?
- What can you do to help fight identity theft?.
What Everyone Should Know: Deter, Detect, Defend
What You Can Do: Deter, Detect, Defend
Getting the Word Out—At Work
- Step 1: Check with your employer.
- Step 2: Send a Deter, Detect, Defend email.
- Step 3: Distribute the Deter, Detect, Defend brochure.
- Step 4: Post the Deter, Detect, Defend brochure.
- Step 5: Host a meeting at work
Getting the Word Out—In Your Community
- Step 1: Identify the right community organizations.
- Step 2: Place the Deter, Detect, Defend brochure in a public meeting area.
- Step 3: Place an article in your community organization’s newsletter.
- Step.4: Post information on your community organization’s website.
- Step 5: Put together a meeting
Getting the Word Out—Through the Media
- Place a “Calendar Listing” with your local newspaper
- Send a press release to your local media
- Send a copy of the Deter, Detect, Defend brochure to reporters
Materials You Can Use
- Speech
- Presentation Slides and Notes
- Brochure Text
- Frequently Asked Questions
- Email to Employees
- Meeting Invitation Flyer
- Email Invitation to Meeting
- Newsletter Blurb
- Website Posting
- Press Release Template (and anatomy of a press release)
Additional Resources

@GetOutOfDebtGuy

My College PO Box Buddy Stole My Identity. – Crystal

Steve Rhode — Wed, 08 Sep 2010 13:43:31 +0000

From How to Get Out of Debt

“Dear Steve,

A few years ago, the person whom I shared my college post office box with stole my identity and opened several cards in my name, most of which were charged off later. To this point I have been able to have all of them removed from my report except Capital One.

Although Equifax and TransUnion both removed inaccurate addresses from my credit report, put fraud alerts on my reports, and also removed every other fraudulant account from my report, somehow Capital One keeps coming back as verified. When I talk to the bureaus, they tell me that CO was able to verify my name, social security number, address and birthdate. Even after telling the bureaus that they shouldn’t be able to verify my address since it was supposedly removed, and of course they can verify my other information (it was stolen, so the thief obviously had all my information), they keep telling me Capital One is verifying it and they cannot remove the item. How can I actually have this removed?? I don’t want to have to wait 4 more years to buy a house because of an account that isn’t even mine!

Crystal”

The Answer:

Dear Crystal,

Ahh yes, the old college identity theft issue. It happens all the time.

If you have a copy of the police report you filed when you discovered your identity was stolen, submit that to the credit bureau. That might give them enough support to remove the account unilaterally.

Otherwise, it is a problem with a creditor verifying an incorrect account. When it comes to Capital One, get a lawyer to write a letter to them if the police report does not get the account removed. Capital one does not listen to reason, you’ll need some authority behind it.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Had A+ Credit Until My Identity Was Stolen. – Nikki

Steve Rhode — Sat, 04 Sep 2010 17:39:30 +0000

From How to Get Out of Debt

Nikki

“Dear Steve,

I had A+ credit until I found out my identity had been stolen. Collection agencies are just out for blood from anyone. Now I am facing arbitration!

I am facing arbitration with a credit card company’s attorney. Can I protect my assets with a lien or trust to buy some time and leverage and is this process expensive?

Nikki”

The Answer:

Dear Nikki,

Here is what you need to understand about arbitration, you will lose. If you are a victim of identity theft and that is what has resulted in the current mess, get legal help. Contact a local attorney.

There must be more to this story though, simply because you are identity theft does not mean that you wind up in arbitration and collections.

As a victim of identity theft, hopefully you filed a police report when this happened so you’ll have some proof.

Big Hug!

@GetOutOfDebtGuy

My Ex-Husband Stole My Identity and Ran Up Debt. – Veronica

Steve Rhode — Wed, 04 Aug 2010 20:33:36 +0000

From How to Get Out of Debt

“Dear Steve,

I was married to a man that was our sole supporter for 18 years, we seperated and he kept the house. 3 years later when he died i realized that he racked up over 40k in debt in cc’s and loans in my name that i did not know about. we also had a house that was lost to the bank. i have never had my own cc or any sort of loan or car loan and now feel bankruptcy is my only choice.

How do i prove that my ex opened and used cc’s in my name to avoid filing bankruptcy? if I do file does it matter the total amount? in other words is it worth fighting each credit report ding to lower the amount owed before hand? i have no claim to any of the debt on my report.

Veronica”

The Answer:

Dear Veronica,

If you have not done so already you should get a consolidated copy of your credit report and check all three credit bureaus for credit that he took out in your name.

Next, contact your local police department and file a police report for identity theft.

Then you need to contact those lenders and let them know you are the victim of identity theft and credit fraud. Provide them with a copy of the police report if they ask for it.

After an investigation by the lender the items should be removed off your credit report and from your responsibility.

If too much time has past since he died or the lenders refuse to acknowledge you were a victim of identity theft then you should click here to find a local bankruptcy attorney to talk to.

My opinion is it is worth fighting it first.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Mother Stole My Identity and Opened 30 Credit Accounts in My Name. – Darryl

Steve Rhode — Wed, 30 Jun 2010 22:03:16 +0000

From How to Get Out of Debt

“Dear Steve,

My mother has opened at least 30 accounts in my name and stolen my identity. She put the wrong birth year on all accounts, but put the right information. I still live with her and have nowhere else to go until i become eligible to join the military service. I dont know what to do. I cant get a car, I cant apply for a loan, I cant do anything and my job doesn’t pay enough. She paid a small company to get my credit fixed, but they are not progressing. I need some financial advice.

What is the absolute best thing to do in this type of situation?

Darryl”

The Answer:

Dear Darryl,

That sure sucks.

To make it suck even more, does she even know what year you were born?

Unfortunately you are left with two choices.

Contact the credit card companies, file an affidavit of fraud, and you’ll have to file police charges against her. Then put a fraud alert on your credit report.
If that doesn’t sound possible then file bankruptcy and put a fraud alert on your credit report to slow her down from doing this again. However, don’t be surprised if she does do it again. That’s the way it usually goes.
By you filing bankruptcy to resolve this problem you’ve enabled her to keep doing this since you took on all the consequences.

Honestly, for the long run, the best approach is the police report and press charges against her. Otherwise she’ll know she can do it again, all the current fraud accounts could hurt your military service. You need to face this and take action to end this situation.

Make sure when you leave for the military you do not have any of your financial information sent to her address and from now on check your consolidated credit report every six months to watch for new fraudulent activity.

While the solutions are not joyous, remember, she did this to herself. It is not your fault for turning her in.

Once that is all addressed then you may want to examine what underlying behavior she has that led her to this. She might have an addiction or mental health issue that needs treatment.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Mother Said I Could Take Credit Out in Her Name and Now Denies It. – Garry

Steve Rhode — Mon, 21 Jun 2010 21:38:43 +0000

From How to Get Out of Debt

“Dear Steve,

About 3-4 years ago estimated time, my mother had given me her verbal permission to get credit in her name, she never said how much credit I could take out, she said I want you to build credit, so I am fine with you having credit cards in my name with you as the 2nd cardholder to help you build credit, well times did get rough and I took out quite a few cards to pay bills, now I’m stuck with the bills and unable to pay them, one has been through the complete process of a summons to court, she knows about the whole situation, but denies now that she gave me permission to use her information, what can happen to me?

What’s the worst thing that can possibly happen, and if legal action would each card be considered a different case or would it all be considered Identify Theft? I’m curious just so I know what kind of stuff I’m facing.

Garry”

The Answer:

Dear Garry,

The creditors will go after your mother and the debt is her responsibility unless she claims the debt is the result of identity theft and she files a police report against you.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Wife Took Credit Out in My Name and Then Died. – Jasper

Steve Rhode — Wed, 16 Jun 2010 15:35:21 +0000

From How to Get Out of Debt

“Dear Steve,

One month after my wife passed away I received a bill from a credit card company. I have never applied for a credit card and never used one. She had applied for this in my name without my knowledge. Am I responsible for this $5000 debt?

Jasper”

The Answer:

Dear Jasper,

First off, I’m so sorry for your loss and having to live through all of this.

This should be a fairly easy matter to take care of with a little work.

Contact the credit card company immediately and ask for the fraud department. Let them know you were the victim of identity theft. They will require you to complete a statement about the fraud.

You will probably need to provide them with a certified copy of her death certificate at some point so if you don’t have one, get one.

The bank should investigate the matter and remove you from the account. Just have some patience, it’s a bit of a strange situation so it may take the bank a bit to deal with this.

The bank may also require you to file a police report that you were a victim of identity theft. This is a normal process and if they ask you to do this, do it. The quicker you comply with the steps and requirements of the banks investigation, the quicker this will all be behind you.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Identity Theft: How to Protect Yourself and What to Do If You Are a Victim

Amanda Miller — Wed, 02 Jun 2010 03:07:13 +0000

From How to Get Out of Debt

Think your money and peace of mind are safe from thieves? Think again. Identity theft is one of the fastest growing types of robbery today. As many as 300,000 people are defrauded each year by crooks using stolen identities. Guess who ends up paying for the millions of dollars that stores and lending institutions lose in this way? That’s right. You and me.

Identity Theft is Easier Than You Think

Identity theft occurs when a thief gets your identifying information and poses as you to run up your credit cards, open new credit cards and bank accounts, drain bank accounts, apply for jobs and housing, get loans, open utilities and long distance phone accounts, get false identities and write false checks. Identity thieves can even commit crimes then give their fake identity (your name) to police when they are arrested.

Unfortunately, the way that most people discover that their identity has been stolen is by getting a collection call from a company they never did business with or by being denied a loan because of a bad credit rating, when they have always paid their bills on time. Although the victim of identity theft may not be responsible for the actual debt, he or she may be left with a bad credit report that can take years to correct. This bad credit report affects a consumer in every facet of his life — the ability to get loans, the cost of insurance, mortgages, bank accounts, rent apartments and it can even destroy job chances. Victims spend hundreds of hours and thousands of dollars straightening out their credit records.

Thankfully, Congress listened to the victims of identity theft and, in October 1998, enacted the Identity Theft and Assumption Deterrence Act. The Act gives victims a weapon against identity thieves and a single place where they can file a complaint and get consumer information. The Federal Trade Commission maintains a Web site where victims of identity theft can file a complaint at www.ftc.gov. It also criminalizes fraud in connection with theft and misuse of personal identifying information. Anyone who steals another person’s identity, and gains $1,000 within one year from misusing that identity, is subject to a fine and imprisonment of up to 20 years.

Some states have also criminalized identity theft. Check your consumer protection or consumer affairs office to see if your state has such a law and how it can help you.

How Does a Thief Get My Identity Information?

It is very easy for a thief to get important information from you. A thief can get information from you by:

Reaching into your mailbox and sifting through your mail and stealing your bills, credit card applications, pre-approved cards, bank or credit card statements or credit cards
Looking through your trash for credit or debit card slips, checks, credit card applications or other documents with identifying information
Stealing your wallet
A merchant’s employee stealing your identification from a check or credit card slip
Filling out a change of address card to divert your mail to the thief’s address
Relatives, roommates, friends, household workers, ex-spouses using your identity without your authority
Obtaining a copy of your credit report by pretending to be someone with a “legitimate business purpose” to the information under the Fair Credit Reporting Act
Watching you punch in your Personal Identification Number (“PIN”) at ATMs or public telephones

The personal information that thieves want and that you should be very careful about protecting is: your Social Security Number, your mother’s maiden name, your passwords and PINs for debit and long distance telephone cards, credit card numbers, old and current addresses and your birth date.

How Can I Prevent Identity Thieves From Getting My Information?

Identity theft is prevalent because it is so easy to do and so hard to detect. You can be proactive to make it harder for thieves to get your personal information and easier for you to detect fraudulent activity early on. Taking proactive steps is especially important because it is so difficult to erase the false information from all your identifying documents, such as your credit report. The following steps will help you police your information and reduce the overall information that is available on you:

Pay attention to your billing cycles and contact creditors if bills do not arrive on time. Also, know when new or reissued credit cards will be coming in the mail.
Leave all unnecessary documents at home, including excess credit cards or identification (such as your birth certificate or passport).
Keep documents with personal information, like canceled checks, in a safe place and shred them when you don’t need them anymore. Documents that you should shred include charge receipts, copies of credit applications, insurance forms, bank checks and statements and old charge or debit/ATM cards.
Document all important creditor information — contact information, account numbers, expiration dates and any other relevant information — and keep it in a safe place in your home.
Don’t dispose of identifying information, like an ATM, debit card or credit card slip, in a public trash can.
Cancel all unused credit card accounts so that an identity thief cannot get these account numbers from your credit report.
Consider opting out of pre-approved offers of credit by removing your name from the marketing lists of the three major credit reporting agencies, Equifax, Trans Union and Experian.
To take yourself off the lists of all three reporting agencies, call 1-888- 5OPTOUT (1-888-567-8688).
Consider signing up for the Direct Marketing Association’s Mail and Telephone Preference Services. Write to the following addresses and ask to be added to “name deletion lists” to stop mail and telemarketing.

Mail Preference Service

Telephone Preference Service
P.O. Box 9014
Farmingdale, NY 11735-9014
www.dmaconsumers.org/offmailinglist.html

Consider having your name and address removed from the phone book and directories. Contact your local telephone company to find out how to get an unlisted telephone number.
Use a mailbox that is locked or contact the post office to get a post office box to deter thieves from stealing your mail.
Always pick up newly ordered checks at the bank to avoid having blank checks in your mailbox.
Be sure to mail all paid bills at the post office or use a public mail box.
Be smart when giving personal information over the phone. If you have any doubts about the person asking the information, hang up and initiate the call yourself.
Check your credit report annually. You can get a consolidated report from all three major credit reporting agencies at GetOutofDebt.org. Fill out the investigation form if you find any inaccuracies that you want to dispute.
Be smart when picking a Personal Identification Number (“PIN”) or password. Thieves assume you’ll use a number that is easy to remember, like the last four digits of your Social Security number or your birth date. Don’t have your PIN written on your card.
Make sure no one can see you punch in your PIN or password at the ATM or retailer, or your telephone card number at a public telephone.
Be protective of your Social Security number (“SSN”). If someone asks for it, such as when you write a check, see if you can provide another number. There are some forms where it is necessary, such as your tax forms.

What Should I Do If My Identity Is Stolen?

If your identity is stolen, you have to take steps to ensure that the thief can no longer pose as you and to restore your credit history and good name. Fortunately, you may not be responsible for debt that a thief incurs using your name. (If an identity thief runs up credit cards in your name, and you notify your creditors, the most that you will be responsible for is the first $50 that was fraudulently charged. The same is generally true of debit cards. If your identity has been stolen, you should do the following IMMEDIATELY:

Notify creditors by phone as soon as you discover the theft. Ask for the fraud department and have them close all your accounts. Follow up with a certified letter, return receipt requested, confirming your telephone call.
Contact the major credit reporting agencies to ask that a “fraud alert” be placed in your file.

Experian

Trans Union — tuc.com

Equifax — equifax.com

Add a “victim’s statement” explaining that your identity was stolen. This statement may be placed in your file for a limited period of time, so be sure to renew it if necessary.

Call the local police and report the fraud. Some banks or credit card companies may require you to show a police report to verify the crime.
Call your bank/credit union and cancel old account numbers, PINs, ATM and debit cards, and get new ones. You should report false checks/bank accounts to the following check guarantee companies so that they will flag your file and ensure counterfeit checks will be refused:

TeleCheck

International Check Services
1-800-526-5380

Equifax
1-800-437-5120

If you suspect that someone is using your driver’s license number, call the Department of Motor Vehicles
(“DMV”). The DMV can tell you if it issued another license in your name. If this is the case, get a new number and ask the DMV to investigate the identity theft. You may have to fill out a form. Some DMVs allow you to block your information from being released.
Call all utilities (electrical, gas, water, local telephone, long distance telephone and cable TV) and let them know that other services may have been fraudulently requested in your name. You may need to change account and telephone numbers.
If your SSN was used fraudulently, report the problem to the Social Security Administration’s Fraud Hotline 1-800-269-0271. In extreme cases of fraud, you may be able to get a new SSN. At the same time, don’t impulsively change your SSN as it can put burdens on you later.
Mail fraud victims should contact their local Postal Inspection Service Office.
An identity thief may order a passport in your name. Send a certified letter, return receipt requested, to the passport office to let it know someone may pose as you to order a new passport in your name.

These steps may seem drastic, but you must be careful — don’t think you’re safe because you canceled your credit card and placed a stop on your checking account. Once identity thieves have your identification information, they can open new bank, credit card, utility and other accounts and lines of credit under your name.

You should keep a log of everything you do to correct the identity theft. Write down all telephone conversations in detail — date and time, name of person with whom you speak, telephone numbers and the substance of the conversation. See the sample log on the last page of this publication. Send all letters by certified mail, return receipt requested. Keep copies of all letters and documents.

Under the law, the Identity Theft and Assumption Deterrence Act of 1998, you can notify the Federal Trade Commission, which keeps a database of all complaints.

Call 1-877-IDTHEFT (1-877-438-4338) to receive consumer information and get referrals to the appropriate organization that you should contact.

Citibank in Bahrain Won’t Help Me With Fraudulent Charges on My Credit Card – Sam

Steve Rhode — Wed, 19 May 2010 19:50:05 +0000

From How to Get Out of Debt

Sam

“Dear Steve,

Hi, My situation is as follows:

I have an account with Citibank Bahrain but I don’t live in Bahrain anymore, just use the account for some bill payments and creditcard which is very good to provide airline miles. I Have been thru a situation with them that recently my creditcard was cloned in a different country (the country that I actually live) and although the card has been used by someone else they say I’m liable for the transactions (different signature) and etc.

I have said to citibank many times about this case but they refuse to cancel this debt from the card and I don’t want to pay something I didn’t buy or use the credit card for.

My question is: Since they don’t acknolledge that I simply want to leave this debt there and the account will be closed automatically. Is that OK ? (I understand its not perfect but i found that is the only solution, correct?

In this case, can I come back to Bahrain one day? What about GCC countries ? Can citibank reach another account i hold with them in another country and take the money ?

How serious is this based on Bahraini law, is it just a citibank bahrain issue, or there is law enforcement involved?

Sam”

The Answer:

Dear Sam,

Citibank Bahrain claims to abide by the Bahrain Code of Best Practice on Consumer Credit and Charging.

Now I have seen cases in the UK where the bank claimed that a skimmed card was the responsibility of the card holder because for the card to be cloned it must not have been properly secured by the cardholder. That is a ridiculous statement. It was latter proven that a card can be cloned wirelessly without the card ever leaving the security of the cardholder when run though a till with a skimming device. It’s just another argument designed to prevent you from being treated fairly.

The key to a resolution here is going to be to follow the official procedure for complaint, escalate, and document. If you have not received a satisfactory resolution after all of that then I would advise you to provide copies of your now complete complaint to a lawyer in Bahrain to pursue the matter fully.

You must take this matter seriously since the laws in the GCC for debt problems are severe and can result in imprisonment.

Big Hug!

@GetOutOfDebtGuy

LifeLock CEO Has Identity Stolen 13 Times While Promising in Ads That LifeLock Protects Your Credit

Steve Rhode — Wed, 19 May 2010 16:59:53 +0000

From How to Get Out of Debt

Excerpts from a great article out of Phoenix that you need to read if you are interested in LifeLock. Apparently not only does the service not work but the guarantee they use to promise to protect customers is full of holes as well. Most telling was the fact that CEP Todd Davis has had his identity stolen 13 times since 2005. The history of the company reveled in the article was intriguing as well.

“LifeLock’s co-founders, Richard Todd Davis and Robert J. Maynard Jr., told reporters across the country that Maynard had once spent a week in the Maricopa County jail, falsely accused of crimes, because his identity had been stolen. The 2003 incident was the inspiration for the company, they said.

Official records and interviews with authorities in Nevada proved the story a fable. Maynard had been arrested and jailed here, all right — because he’d failed to pay back a $16,000 gambling marker at the Mirage casino in Las Vegas. Like bouncing a check, that’s a crime. Nevada authorities dropped the charges after Maynard, from his cell, managed to scrape together the cash.

The article also revealed that Maynard, the Valley businessman who was principally behind LifeLock during its 2005 inception, was banned for life in the 1990s from the credit-repair industry.

Then there was this ironic tidbit: Maynard’s own father, Valley optometrist Robert Maynard Sr., accused him of identity theft.

Read the full article on LifeLock here. It’s worth the time.

@GetOutOfDebtGuy

I’m a Victim of Credit Fraud By My Husband. We Are Now Divorced. – Bobbi

Steve Rhode — Tue, 18 May 2010 19:03:52 +0000

From How to Get Out of Debt

Bobbi

“Dear Steve,

Divorced and stuck with huge debt from marriage.

What is the best way for me to get out of debt and have decent credit again?

I was married to a “spender” who tricked me so many times – getting loans and credit cards under my name without asking me, made himself an “authorized user” and maxed out everything.

After I finally left him, got steady job, saved money little by little and paid off 4 smaller ones. I’m not getting pennies from my ex even most of them are his expenses (he didn’t earn, but spent a lot for 2 years). I still have over $50,000 left to go, everything is under my shoulder since authorized user doesn’t mean anything to credit people.

I’d really like to avoid Bankruptcy if I could, but the amount I owe is more than I make in whole year and I just don’t know what to do. I’m also stuck with car payment that is making my Ex’s credit better. I’ve already wasted so much money on him.

I’d like to start saving money for retirement, or be able to buy house some day – he also cleaned up my retirement from previous job and I’m almost 40! I pay everything cash now and do not have any credit card or loan. I don’t buy anything I don’t need and saving my pennies. But because of this huge debt, my credit is so bad I can’t even get a loan from my own company’s credit union. I’m not dreaming that everything will go away in year or so, but I don’t want to suffer from this forever. Please help.

Bobbi”

The Answer:

Dear Bobbi,

I am so sorry to hear about the credit fraud by your ex-husband. Sadly, that’s not the first time, nor the 100th time I’ve heard of such a situation.

Basically he has created a huge financial mess, that he benefited from, and has left you to clean up. You could always go after him through the courts for repayment but that is going to cost you money.

Ironically the best solution for this is the one that feels the least logically to you, bankruptcy. If you go bankrupt you can put an end to these debts and then begin to rebuild your credit. In a few years you will be back in good shape.

If you do not declare bankruptcy then you will be making payments on this debt for years and years and then work to rebuild your credit. Ironically bankruptcy is probably the most expedient way to repair your credit the fastest.

Sure, bankruptcy will be reported on your credit report for seven to ten years but that is the smaller issue. The larger issue is that you won’t be able to close the door on these debts and rebuild good credit without closing the door.

This issue about his fraudulent application for credit and making himself an authorized user is a matter that you should have pursued with criminal charges when you first found out about it. As a fraud victim the debt would have been removed from your responsibility. The hard part is that you would have had to cooperate, at that time, with the legal system to charge and prosecute your then husband.

The authorized user approach was crafty on his part. He probably assumed that you would not charge him with a crime. If you didn’t he could walk away and the debt was all in your name. He left you holding the debt and he did it with forethought and malice.

Let me guess, was he a bad boy and you were trying to fix him? It sounds like you are a giver and he was just a taker. And he took alright.

Since it sounds like a lot of time has passed since you first found out I think the current creditor argument is going to be that you have since accepted responsibility for this debt and it is now your responsibility. If you don’t agree, I urge you to go and meet with a local attorney to discuss this matter.

Bankruptcy would also shed the car payment for the ex as well. An emotional bonus for you maybe?

Before you decide if bankruptcy is or is not right for you, please call a local bankruptcy attorney and schedule a free bankruptcy consultation to educate yourself about your situation and bankruptcy.

Let me know what you decide to do. Please.

Big Hug!

@GetOutOfDebtGuy

My Mother Keeps Taking Out Credit in My Name. – Beth

Steve Rhode — Mon, 19 Apr 2010 16:20:09 +0000

From How to Get Out of Debt

Beth

“Dear Steve,

I live in Pennsylvania and lived in PA all my life, my Mom lives in Illinois. I recently received a bill in my name from a collection agency for a little over $650. I continued to read the details and it was from an electric company from my mom’s one old address in IL. I was completely shocked when I received this being that I never lived with her or at this residence. It turns out that she put the electric bill in my name. This is not the first time this has happened. I have received bills from collection agencies for smaller amounts for unpaid phone bills that she had put in my name. In the past I have sent her the phone bills and they were paid. I am affraid she is ruining my credit.

How does she have the authority to put bills in my name? Should I contact these companies and explain the situation? How do I find out if there are any other unpaid bills in my name, so I can have the name changed to my Mom’s?

Beth”

The Answer:

Dear Beth,

She is ruining your credit. And your mother does not have the authority to put bills in your name. What she is doing is illegal credit fraud and identity theft.

Her actions leave you in a terrible bind. What you can do is file a police report against her for identity theft. The police and courts will then deal with her. If you go that route you can then notify the electric company about the identity theft and give them a copy of the police report and that should do it.

If you ignore this and don’t file the police report now that you just learned about this, it will become your responsibility. Most people don’t want to press charges against their parent, relative, roommate, etc. So instead they get stuck with the bills.

You are not being punished by the electric company. It’s you mother that knowingly did this. This is her deal and her fault. If she’s doing this her credit must be absolutely horrible. By the way, that’s not a forgiving excuse.

To see what else might be in your name, get a copy of your three bureau consolidated credit report with the credit report monitoring service so you’ll know of any new activity by her on your credit. This will be the most inclusive document to see what else might be in your name but not all creditors, like utilities report to the credit bureau.

Big Hug!

@GetOutOfDebtGuy

Identity Thieves Flee Walgreens Without Credit Card But Grab Condoms and Greeting Card on the Way Out

Steve Rhode — Sat, 10 Apr 2010 16:37:58 +0000

From How to Get Out of Debt

Out of Wyckoff, new Jersey comes the standard story of credit card impostors using fake cards to buy merchandise. What made me chuckle about this story was what the crooks took as they fled the drug store after a declined purchase using one of the fake cards.

You can read the entire story here.

@GetOutOfDebtGuy

Dentist Office Leads to Identity Theft Idiot in Law Office

Steve Rhode — Fri, 09 Apr 2010 13:52:26 +0000

From How to Get Out of Debt

Photo Credit: Sappymoosetree

An identity theft ring just busted in California got the information on victims to open fake credit accounts in their name from a local dentist office where an employee was giving the identity theft ring dental claim forms which contained the patients’ names, addresses, dates of birth and social security numbers. And people are worried about using their credit cards online, LOL.

Oh but it gets better.

Another participant in the crime worked at a local law office and used his work computer to open fraudulent credit cards from the stolen information. And he used his work address to receive mail in the scam.

Here is the full release with all the sordid details.

California Attorney General Edmund G. Brown Jr. said six individuals arraigned today on identity theft charges “wreaked financial and emotional havoc” on victims by making tens of thousands of dollars in fraudulent charges in their names. The defendants face multiple felony counts of identity theft, conspiracy, possession of stolen property, and grand theft.

The identity theft ring was able to steal 20 identities and over $170,000 worth of cash, expensive clothing, jewelry and accessories. They bought flat screen TVs, a Gucci watch and $31,000 worth of merchandise from Neiman-Marcus. Members of the ring raised cash by returning items bought using fake identities.

“This criminal identity theft ring wreaked financial and emotional havoc on the victims, who will now endure hours of work fixing their credit and rebuilding their lives,” Brown said. “It’s important to keep these fraud rings from ripping off other victims.”

The six defendants face charges of violating California Penal Code section 182 for conspiring to commit identity theft, section 484 for theft, section 530.5 for identity theft, and section 496 for possession of stolen property. Possible sentences for each defendant range from a minimum of four years to a maximum of 27 years and four months.

The individuals facing charges today include:

Matthew Medlin, 31, of Campbell.
Jessica Campos, 30, of Santa Clara, also faces charges of violating California Penal Code section 502(c) for using dental office clients’ personal information.
Chev Chan, 31, of San Jose, also faces charges of violating California Penal Code section 496 for receiving stolen property.
Quang Le, 32, of Santa Clara. Le also faces charges of violating California Penal Code section 487 for grand theft.
Daniel Lee Lesly, 31, of Los Altos. Lesly also faces charges of violating California Penal Code section 487 for grand theft.
Nick Phuong Luu, 29, of Vallejo. Luu also faces charges of violating California Penal Code section 487 for grand theft, and section 496 for receiving stolen property.

In late 2009, Brown’s office was notified by the U.S. Postal Inspection Service that several individuals reported their social security numbers had been illegally used to apply for credit cards. The credit card information was sent to a San Jose residence later discovered to be the home of Chev Chan.

The subsequent investigation revealed that between June and December of 2009, the defendants, along with other unnamed suspects, engaged in an identity theft spree throughout the Bay Area. The ring’s leaders, Nick Luu and Chev Chan, used several San Jose, Santa Clara, Sunnyvale, and Campbell addresses to divert the victims’ mail. Luu and Chan also had victims’ mail sent through false change-of-address forms and opened five Post Office boxes in San Jose.

Most of the victims’ identities were stolen from clients at a San Jose law office and Santa Clara dental office where two of the defendants worked.

During a search of Nick Luu’s residence, Brown’s office found 10 dental claim forms that contained patients’ names, addresses, dates of birth and social security numbers. The forms were given to Luu by Jessica Campos, an employee of the Santa Clara dental office, to use to manufacture fake identities. Campos was told by leaders in the ring to obtain current employers and addresses of Asian males who were about the same ages as the conspirators. As a result of Campos’ involvement, three dental office patients had their personal information used to make fraudulent purchases.

Chev Chan, used stolen identities to open Discover, Bank of America, and Chase credit cards while he worked at the San Jose law office. Chan used his work computer to change account addresses and open fraudulent credit card accounts under two victims’ names. Chan also used his employment address to receive mail and open two Post Office boxes under the victims’ names.

One of the defendants, Quang Le, was seen on video surveillance at Zales Jewelers in Eastridge Mall making a fraudulent purchase of $4,400. Le also racked up over $31,000 in fraudulent charges at Neiman-Marcus.

The fraud ring also opened fraudulent bank accounts and wrote dozens of checks. Daniel Lesly wrote 15 non-sufficient-funds checks totaling almost $2,000 from an account he fraudulently opened at Bank of America. The checks were written from the account to Target and Lucky’s. Lesly also returned a Gucci watch, previously purchased using a fake identity, and took over $2,000 in cash for the exchange.

To enable him to use the credit cards, defendant Mark Medlin used the victims’ identities to open credit lines and manufacture fake California driver’s licenses. These fraudulent driver’s licenses were used by Nick Luu, Chev Chan, and Quang Le.

Additional items purchased with the stolen identities include:
- A watch worth $8,150 from Ben Bridge Jewelers
- Merchandise worth $6,402 from Nordstrom
- A 55″ flat screen television worth $3,277 from Sears online
- A 40″ flat screen television worth $1,509 from Sears online
- Comforters and bedding worth $725 from Macy’s
- A Movado watch worth $1,281 from Kay’s Jewelers
- A Tag Heuer watch worth $4,485 from Macy’s
- Jewelry worth $8,150 from Ben Bridge Jewelers

@GetOutOfDebtGuy

Colorado Attorney General Reaches Settlement With Identity Theft Scammer

Steve Rhode — Wed, 24 Mar 2010 17:20:52 +0000

From How to Get Out of Debt

Colorado Attorney General John Suthers announced today that attorneys from the office’s Consumer Protection Section have reached a settlement with Donald Sterling Whitlock (DOB: 5/6/1970) that secured full restitution for the victims of his elaborate identity theft and commercial-lending scheme.

The State had originally also charged his wife Erin Whitlock in the scam but she was dropped from the suit. Donald Whitlock was also the hockey coach for his wife’s team, the Mother Pluckers B.

Under the settlement, approved in a Denver District Court, Whitlock is prohibited from setting up any mortgage-related or other financial-services business in Colorado or using any aliases or fake businesses to conduct business in Colorado. Whitlock also will be required to pay $136,156 in restitution and $40,000 in civil penalties, fees and court costs. Whitlock also will be liable for an additional $500,000 penalty if the Office of the Attorney General discovers any undisclosed financial transactions that Whitlock secured related to the fraud scheme between April 1, 2007 and March 4, 2010.

“This settlement is a tremendous victory for the people of Colorado and all of the victims of this complex fraud scheme,” Suthers said. “This conclusion is particularly remarkable given the speed we secured restitution for the victims and a court order preventing Mr. Whitlock from perpetrating the same fraud scheme again.”

According to the Office of the Attorney General’s lawsuit, filed in Denver District Court in December, Whitlock used a series of business entities with names similar to the lending arms of well known companies to defraud consumers. None of the entities Whitlock created were affiliated with the real companies. Whitlock is suspected of using the entities he established to convince consumers to provide substantial upfront fees to secure loan commitments for real estate developments. Whitlock also was suspected of stealing his victims’ personal information, secured from prospective investors, and using their identities to set up other fake businesses.

The complaint against Whitlock’s wife, Erin Reese Whitlock (DOB: 7/11/1969), was dismissed as part of the settlement. Donald Whitlock, a resident of Lauderdale-by-the-Sea, Fla., has resided in Aspen, Basalt and Southport, N.C.

Consent judgment and permanent injunction.

@GetOutOfDebtGuy

Casino Part of Identity Theft Case Involving Cash Advances

Steve Rhode — Wed, 17 Mar 2010 22:14:19 +0000

From How to Get Out of Debt

NIAGARA FALLS, N.Y. (WIVB) – Authorities say they’ve cut off a major identity theft operation.

The suspects are from New York City, but a significant portion of the alleged crimes were committed here in western New York and involve massive cash advance withdrawals at Seneca Casinos. Authorities say this case could involve hundreds of out-of-state victims and big money losses.

Tracy Gast, Special Agent in Charge of the Buffalo Secret Service Office, said, “I think the overall scope of the case has not been determined yet. Right now, we’re at about $250,000 in loss.”

Eight people from New York City and Florida are charged in a suspected counterfeit credit card ring. They’re accused of draining accounts, possibly by skimming information from credit cards. Gast says skimming generally involves electronically scanning information from the card’s magnetic strip.

What’s more, the government alleges that the suspects withdrew hundreds of thousands of dollars in cash advances from ATMs at Seneca Casinos in Niagara Falls and Salamanca. The complaint states that between October and December 2009, over 110 cash withdrawals were made in $2,000 amounts, totaling about $200,000.

“The victims we have right now had not been patrons of the casino. So what we’re looking at is where they might have obtained that information,” said Gast.

Source

@GetOutOfDebtGuy

My Mother Opened Credit in My Name While I Was in a Coma

Steve Rhode — Wed, 17 Mar 2010 21:48:08 +0000

From How to Get Out of Debt

“Dear Steve,

My credit was ruined in early 2004 when I was in a coma and my husband had decided to leave me, take the money and not pay the bills. I lose everything, home, car, credit and any insurance money he spent. So I had started over from nothing. I have now found out that my recently deceased mom, had opened credit card accounts in my name with Lowes, Dillards, and possibly one other creditor ( I am still trying to find out whom). She had done this in 2005 without my permission.

My boyfriend and I are wanting to marry. I dont want to ruin his credit because of a few people in my life whom took me for a ride. I have done all that I can to rebuild, but it’s been a huge battle and he knows that. The things from the marriage would probably be gone in the next two years, so I do not contact them because I do not make enough to even negotiate with the old debt. I have proven to my boyfriend that I am credit worthy, because he has done little things to help me, loan wise, and I am very reliable about paying those debts. My problem is, I dont want to bring my bad credit score into a marriage to a great guy with a good score. Can you give me some guidance in this department? Also, what the heck can I do about the debt that my own mother incurred in my name? I am more than happy to fight in whatever way I can about those because, they are not mine and I did not authorize those.

Any guidance you can give me would be so helpful.”

The Answer:

Wow! I’m so sorry to hear about this. But identity theft typically happens by someone you know.

The first thing to do on those accounts your mother scammed you on is to promptly file a police report about them. Then contact the credit card companies and advise them. They will ask you for a copy of the police report or a contact at the police to confirm you did report it.

If you have not looked at a consolidated copy of your credit report recently I suggest you do so before you contact the police. A consolidated credit report contains all three credit bureaus and it’s important to look at the consolidated report since they don’t report all the same information. You need to look for any other accounts you may be a victim on here. The link for the consolidated credit report is the same one I use.

Your great guy can’t marry into your credit score. Your history will have no impact on his score. No worries there. The only way it could be a factor is if you apply for new credit jointly and because your credit currently sucks you would not help to qualify for whatever it is.

Another consideration is to think about bankruptcy now to clear all the past debt and close the door on it. Just because a debt has passed a statute of limitations does not mean a future collection company can’t come back to pressure and intimidate you into paying for it. Is that something you really want to deal with in your new relationship?

Bankruptcy isn’t such a crazy idea here since it would allow you to block any future attempt to collect any of this past debt and let you walk into your new relationship without having to look back over your shoulder for someone that might surface to collect on a past you’d rather put behind you.

If it is an idea worth considering then click here to find a local bankruptcy attorney you like.

Big Hug!

@GetOutOfDebtGuy

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If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Scammers Use Dead Babies Identities to Ripoff Banks

Steve Rhode — Sat, 06 Mar 2010 17:23:04 +0000

From How to Get Out of Debt

Here’s a scam I had not heard of before. This one is from Wales and the United Kingdom.

A NIGERIAN gang which stole the identities of dead babies and then plundered bank accounts set up in their name was jailed yesterday.

The gang of three, two men and a woman, stole 44 separate identities over 18 months to set up 100 bogus bank accounts.

Among their victims was John Dempsey Hamilton, a two-year-old from Neath who died 16 years ago.

They then went on to plunder £22,500 from the accounts, largely in the form of generous overdrafts attached to them.

Ring leader John O’Jomo, 25, of Cheapside, Birmingham, was jailed for four years at Swansea Crown Court.

Michael Olusanya, 23, of the same address, was jailed for three years for the part he played in the complex fraud.

His partner Hamda Khahin, 22, of City Lofts, Crwys Road, Cardiff, was jailed for two years.

All three had previously admitted a single joint charge of conspiracy to commit fraud.

The trio operated throughout South Wales and in England ordering up birth certificates online of people who had died years before.

Jim Davis, prosecuting, said the gang targeted those who would have been the same age as themselves had they not died.

Gaynor Davies, 43, John Hamilton’s mother, sobbed silently as she listened to the facts of the case in court.

Later she spoke of the “terrible heart-rending misery” she had suffered as a result of the case.

The court heard the trio were caught after DVLA [the drive licenses people] staff in Swansea grew suspicious of multiple driving licence applications from the same addresses.

The gang used birth certificates they managed to get from the internet to apply for licences, then used them as proof of identity to open bank accounts.

Staff at DVLA headquarters contacted South Wales Police’s Economic Crime Unit in February last year with their suspicions.

The unit’s investigation culminated in all three, who were in the UK studying, being arrested in October of that year.

A computer seized at one address by the police revealed the gang had been looking at genealogy sites in preparation for ID theft.

Judge Keith Thomas, passing sentence, told them: “I have to regard this as a large-scale fraud.

He said it amounted to the “deliberate targeting of a large number of vulnerable people”.

He added: “The use of identities of young deceased people is a particularly despicable form of fraud.”

He said he had read a number of victim impact statements which all spoke of the way in which their suffering had been brought back to them.

Afterwards, a still emotional Mrs Davies said: “It is a relief that it is all over now.

“There is not a day goes by when I do not think of my son and how he would be if he were still here now.

“As time goes on you think of the positive things and put the bad things at the back of your mind.

“This has brought everything back again. It is as if it were day one and I feel as if I am grieving all over again.

“My son was very precious. To them they have just stolen bits of paper – to me it is like stealing my son’s memory.”

Source

@GetOutOfDebtGuy

My Mother Stole My Identity And Has Not Paid the $5,000 Now Due. I’m 20 and Pregnant. – Mirellys

Steve Rhode — Thu, 04 Mar 2010 17:57:11 +0000

From How to Get Out of Debt

Mirellys

“Dear Steve,

I’m 20yrs old and about to have my first child, i’d really like to get my own place and be independent but it’s real hard because without my knowing my mother used my name and ss# to put utilities in the house and that’s been accumulating since i was about 15 now because of her i owe over $5,000 in debt.

I only have a part time job that doesnt provide me enough to send a little money to everyone and still have to survive.

What do i do? where do i go to for help? is it possible that i can qualify for any kind of grants?

Mirellys”

The Answer:

Dear Mirellys,

What your mother did was illegal and trashed your credit. Unfortunately it has also left you in a horrible situation where the typical apartment complex is probably not going to give you an apartment with your bad credit without you putting up more money and the utility companies are not going to give you new service with the huge bad debts for utilities in your name.

The solution to this problem is going to be a multi-stage process. First, the only way for you to stop the old debt following you is going to be for you or your mom to pay that bill off, which you probably can’t do. Next, you’ll probably have to look at bankruptcy to eliminate that debt from your responsibility. When you do that the utilities are going to look at your mother to make other arrangements or switch the utilities off.

Next, you will have to start to build some new good credit. I suggest that you do this by getting and using a secured credit card that reports your activity to the major credit bureaus. You can’t build a new good credit history without having good credit reported about you.

There are no grants to bail you out of this mess. It is going to take hard work and certainly longer than nine months.

The only other solution I can think of that is less expensive if for you to rent a room in a private home. While that might get you out of the house, since the utilities are in your name that does not eliminate the possibility that you will be sued by the utilities or you already have been sued by the utilities for the past due debts. The utility situation is simply an identity theft by family member mess that will take time to deal with. Thanks mom!

You should also get a copy of your consolidated credit report and make sure there are no other debts in your name that you don’t know about. Chances are, there are.

Big Hug!

@GetOutOfDebtGuy

Debt Collector Credigy Receivables Has to Pay Woman $26,000.

Steve Rhode — Wed, 03 Mar 2010 18:03:18 +0000

From How to Get Out of Debt

This case comes out of North Carolina and fell against a collection company called Credigy Receivables. What makes this a story worth reading is the extent at which Credigy Receivables really screwed up on properly collecting on the debt of a woman named Blanche Whittington. It might take a few minutes to get through all of this but by the end you’ll be shaking your head and wondering what was Credigy Receivables thinking. Here’s the story from the appeal published.

The interesting underlying issue here is that Credigy Receivables purchased a bad debt that was the result of identity theft and they attempt to collect on it anyway from the victim without really looking into the matter or connecting the debt with the real Blanche Whittington at all.

In 2008, Credigy Receivables, Inc. (“Credigy”) purchased and became the assignee of a default judgment against “Blanche Whittington” of 107 Courtland Place, Goldsboro, Wayne County, North Carolina. The assignment granted Credigy the right to collect on the judgment, which concerned a delinquent credit card account opened in the name “Blanche Whittington.” After the purchase, Credigy initiated proceedings to collect the debt against 82-year- old Ms. Blanche Whittington of 2114 Michelle Drive, Kinston, Lenoir County, North Carolina.

The real Ms. Whittington, residing in Kinston, did not incur the debt underlying the judgment, but instead was the victim of identity theft by a Ms. Mary E. Atkinson. Ms. Atkinson appropriated Ms. Whittington’s social security number in perpetrating a number of similar frauds on other creditors during the time the credit card debt was incurred.

Upon receiving a notice to claim exemptions from Credigy, Ms. Whittington retained counsel, who immediately notified Credigy’s counsel of the error. Subsequently, Ms. Whittington’s counsel filed a Rule 60 motion, including a motion for attorneys’ fees, to set aside the judgment. The matter proceeded to hearing, and the judgment was eventually set aside as to the true Ms. Whittington by consent of the parties.

Despite this agreement, the trial court awarded Ms. Whittington $26,101.75 in attorneys’ fees accumulated while defending against Credigy’s enforcement efforts under N.C. Gen. Stat. § 6-21.5 (2009). Credigy appeals the attorneys’ fees award and argues: (1) that it pursued a justiciable claim against Ms. Whittington in the preliminary stages of enforcement of the judgment, and (2) that the attorneys’ fees were not reasonably incurred, since its enforcement efforts were suspended during an investigation of whether Ms. Whittington was, in fact, the debtor. For reasons stated herein, we affirm the trial court’s award.

Background

At some point prior to 10 May 1999, Ms. Atkinson, posing as “Blanche Whittington,” applied for a credit card account with Fleet Bank. On the application, Ms. Atkinson represented to Fleet Bank
that: (1) her name was “Blanche Whittington”; (2) her social security number ended in 1234 and (3) she lived at 107 Courtland Place, Goldsboro, Wayne County, North Carolina. The credit account became delinquent as of 10 May 1999, and Fleet Bank transferred the account to First Select Corporation (“First Select”). On 28 July 1999, First Select filed suit against Ms. Atkinson for nonpayment of the outstanding balance plus interest, $6,319.72. First Select used the name “Blanche Whittington” in the complaint heading.

On 21 August 2001, default judgment was entered in favor of First Select against a “Blanche Whittington” residing at “107 Courtland Place[,] Goldsboro, North Carolina,” and the judgment was registered in Wayne County, North Carolina. The judgment award included the principal sum of $6,205.47 with 8% interest per annum, $947.96 in attorneys’ fees, and the costs of the action. The Clerk of Superior Court of Wayne County entered default judgment in favor of First Select upon a showing by its attorney that service of the summons and complaint was obtained by certified mail on 20 July 2001. The mail summons was delivered to the residence of 107 Courtland Place, and someone at the residence signed their name as “Blanche Whittington” to receive service. Prior to completing service by mail, First Select’s counsel had six summons and complaints returned without service, because the Wayne County Sheriff’s office could not locate any person by the name “Blanche Whittington” at 107 Courtland Place in Goldsboro.

In October 2001, First Select attempted to serve a Notice of Right to Have Exemptions Designated on “Blanche Whittington[,] 107 Courtland Place[,] Goldsboro, North Carolina.” The deputy sheriff returned the notice unserved on 23 October 2001, and stated that the “Blanche Whittington” purportedly residing at 107 Courtland Place was not able to be located and that no forwarding address was available.

On 26 March 2003, First Select assigned the default judgment to Credigy for $10.00, and the assignment was registered in Wayne County. On 16 April 2003, Credigy’s counsel mailed a notice of the assignment to “Blanche Whittington” at 107 Courtland Place in Goldsboro.

Credigy obtained a Notice of Right to Have Exemptions Designated for “Blanche Whittington[,] 107 Courtland Place[,] Goldsboro, North Carolina[,]” on 25 May 2007. The notice was returned by the Wayne County Sheriff’s Office on 1 July 2007 with the notation: “Does not live at given address[.] Lives out of state[.]” Credigy’s counsel thereafter conducted a “skip trace” search through Lexis using the social security number listed in the credit application. A “skip trace” search is a tool provided by several online search companies to help debt buyers locate missing debtors. By entering only Ms. Whittington’s social security number into the appropriate Lexis search data field, Credigy’s counsel acquired a new address for “Blanche Whittington”: 2114 Michelle
Drive, Kinston, North Carolina.

On 18 February 2008, counsel for Credigy sent a letter to Blanche Whittington of 2114 Michelle Drive, Kinston, North Carolina.2 The letter offered Ms. Whittington the opportunity to settle the outstanding debt of $11,620.36 for a 20% discount.

Ms. Whittington immediately informed her counsel, who sent a letter by first class mail on 22 February 2008 to notify Credigy’s counsel that an identity theft had occurred, and that Ms. Whittington did not owe the debt underlying the default judgment. The letter was properly addressed and was not returned. In a sworn statement at trial, Credigy’s counsel stated that neither Credigy nor its counsel had any record of receiving the 22 February 2008 letter.

On 1 April 2008, the Sheriff of Lenoir County, North Carolina, served a Notice of Right to Have Exemptions Designated on Ms. Whittington. Ms. Whittington again informed her counsel, who sent another letter by certified mail and facsimile on 3 April 2008, denying Ms. Whittington’s liability on the judgment. On 16 April 2008, Ms. Whittington sought relief from Credigy’s judgment by motion under Rules 6 and 60 of the North Carolina Rules of Civil Procedure. As grounds for relief from judgment, Ms. Whittington’s counsel stated that Ms. Whittington had never resided at the 107 Courtland Place address, and that Ms. Whittington had never been served with process with respect to the default judgment. The motion was accompanied by an affidavit from Ms. Whittington, where Ms. Whittington provided: (1) she had never resided outside Lenoir County, and she had resided at her Michelle Drive address since 1964; and (2) Ms. Atkinson had stolen her identity several years prior, and Ms. Whittington had spent years dealing with Ms. Atkinson’s creditors. In her motion, Ms. Whittington asked the trial court for attorneys’ fees.

Shortly after receiving service of Ms. Whittington’s motion on 16 April 2008, one of Credigy’s counsel called counsel for Ms. Whittington, and left Ms. Whittington’s counsel a voicemail stating that “a mistake had been made and that the mistake should be corrected.” Later that afternoon, Ms. Whittington’s counsel received a call from another attorney for Credigy. The second caller also indicated that a mistake had been made, and that the Rule 60 motion to set aside the judgment should be allowed. Ms. Whittington’s counsel asked Credigy’s counsel to discontinue Credigy’s collection efforts. Though counsel for Credigy concurred that the Notice of Right to Have Exemptions Designated and all collection efforts should be stopped, he declined to make a binding agreement to do so unless Ms. Whittington withdrew her motion for attorneys’ fees. The dispute continued.

On 21 April 2008, a preliminary hearing was held on Ms. Whittington’s motion to set aside the judgment. At the hearing, counsel for Credigy said that all collection efforts would be suspended as to Ms. Whittington; however, he did not withdraw the Notice of Right to Have Exemptions Designated. Instead, Credigy’s counsel asked for an extension of time in order to give his client an opportunity to investigate the facts contained in Ms. Whittington’s affidavit. Another hearing was scheduled for 30 June 2008.

On 16 June 2008, Ms. Whittington’s counsel filed a motion for attorneys’ fees under N.C.G.S. § 6-21.5. In the motion, Ms. Whittington claimed that Credigy had pursued a non-justiciable claim against Ms. Whittington, because Ms. Whittington had never been served with process with respect to the default judgment in issue. Ms. Whittington argued that the judgment was void and unenforceable against her. The motion was thereafter accompanied by two affidavits detailing the times and hours calculating the attorneys’ fees sought. Ms. Whittington’s initial counsel filed one affidavit, and the other was filed by an attorney associated with initial counsel. Up until the filing of the affidavits on 30 June 2008, the total hours accrued between both counsel was 89.4 hours.

On 30 June 2008, Credigy filed a motion in opposition to Ms. Whittington’s motion for relief from judgment, where Credigy moved the trial court to deny Ms. Whittington’s motion for attorneys’ fees. In the brief, Credigy contended that attorneys’ fees were not proper, because it had no notice of a potential identity theft until 3 April 2008, and Ms. Whittington had refused to fill out an industry standard Fraud/Identity Theft Affidavit. Credigy stated that, without the affidavit, it lacked “sufficient justification” to suspend post-judgment collection efforts, and that it lacked
“sufficient documentation” of “an act of fraud or identity theft.” Credigy also noted that it had purchased the judgment “without prior knowledge or notice of any disputes involving the subject account, and as such, is a bona fide purchaser for value.”

On 30 June 2008, the trial court conducted a hearing on Ms. Whittington’s motions. Credigy’s counsel informed the trial court that Credigy had concluded, after “investigation,” that Ms. Whittington did not commit the acts described in the default judgment.

On 16 July 2008, Credigy filed a motion in opposition to Ms. Whittington’s motion for attorneys’ fees under N.C.G.S. § 6- 21.5. In the motion, Credigy contended again that it did not have notice of any deficiency in the judgment until 3 April 2008, and that Ms. Whittington had refused to fill out a Fraud/Identity Theft Affidavit in accordance with industry standards. Credigy averred in particular that Ms. Whittington “knew or with the exercise of due care should have known through the course of her efforts to correct her credit report of the existence of the judgment involving the subject account prior to her receipt of [Credigy’s] [d]emand [l]etter dated February 18, 2008.”

On 4 September 2008, the trial court filed an order granting Ms. Whittington’s motions to set aside the judgment and to award attorneys’ fees.

Source

@GetOutOfDebtGuy

American Idol Contestent Busted for Felony Identity Theft

Steve Rhode — Fri, 26 Feb 2010 18:22:47 +0000

From How to Get Out of Debt

According to TMZ, former American Idol contestant Chikezie Eze was just busted by Beverly Hills Police for using a stolen credit card to attempt to buy some cologne at Neiman Marcus. According to Chikezie it is all a misunderstanding but the Beverly Hills Police don’t seem to see it that way.

Chikezie is out on $50,000 bail. I wonder how much the cologne was?

@GetOutOfDebtGuy

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