Hotline Legal Tips: Handling Family Consumer Debt Problems

By: Ellie Crosby

I let my granddaughter use my credit card to buy some things she desperately needed. She promised to pay me back but she lost her job and is unable to meet her obligations. Now the credit card company is bothering me. What do I do?

You should contact them immediately

You should contact them immediately to let them know of your situation. They may be willing to work with you. If they are not helpful, you always have the right to put a letter of explanation in your credit file.

Under Georgia law, you have the right to obtain a copy of your credit report two times each year without charge. It is a good idea to get your credit report each year to see if there are problems. The company may still try and collect the debt and you will still be responsible for those debts incurred in your name and with your permission. Your letter of explanation will let others know the circumstances around the debt, however.

To place an explanation letter in your file, send a letter to each of the three agencies listed below and ask that they include it in your credit file. Date the letter and provide your full name, address, date of birth and Social Security Number. In the letter, explain the circumstances that led to the debt problems.

For example, you might say something like, "I allowed my relative to make charges on my card based on their promise to pay. They charged more than I gave permission to spend and now they have breached their promise and refused to pay their debt. I have always maintained good credit and I am working hard to force them to live up to their obligations. I live only on Social Security and do not have sufficient income to meet these obligations."

You can say whatever you want, based on your circumstances. Anyone checking your credit will see this letter in your file. While your credit is still blemished by the debt, at least you can explain what happened.

Credit Reporting Companies:

Equifax Information Service
P.O. Box 740123
Atlanta, GA 30374

Experian Credit Reporting
P.O. Box 2350
Chatsworth, CA 91313

Trans Union
P.O. Box 7000
North Olmstead, OH 44070

You should also make sure that the relative who owes your money lives up to their obligation to repay it. For ideas, contact a lawyer or if you are over 60 and live in Georgia, contact the Georgia Senior Legal Hotline at (888) 257-9519.

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Ellie Crosby is a Managing Attorney for the Georgia Senior Legal Hotline. Contact information:

Ellie Crosby - Managing Attorney
Georgia Senior Legal Hotline
2 Peachtree St. 36th Floor
Atlanta, GA 30303
phone: (404) 657-0217
fax: (404) 657-5285
elliecrosby@usa.net

 

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Disclaimer

This site contains general information about Georgia law and is not intended as legal advice to address any specific situation. It is being provided as a public service by the Georgia Senior Legal Hotline. If you have questions about this information, you should discuss your questions with a lawyer. In Georgia, if you are over 60 you may call the Georgia Senior Legal Hotline (888) 257-9519 to speak with an attorney at no charge about your question or problem. Be aware that laws differ from state to state and that laws and regulations can change through court decisions, the administrative process and through the legislative process. This information is current as of February 2000.