TWO clients with issues relating to known and unknown persons who used their names and social security information to borrow credit card in their names. The first client is 51 years old and married. She met this person who became her “friend.” Let’s just call the “friend” Ms. Crook.
The client is a relatively new immigrant to America having arrived here eight years ago. Ms. Crook was introduced to her by a trusted person who said that Ms. Crook wanted to buy a piece of jewelry from JCPenney but couldn’t get credit. Ms. Crook convinces the client to go with her to JCPenney to open an account in the client’s name. Since the client speaks no English, Ms. Crook served as the interpreter giving the personal information of the client to the credit person on the phone who was checking out the creditworthiness of the client. So as Ms. Crook translated all of the personal information, she was able to get the client’s social security number, home address, and all the other good stuff about the client. After the account was opened, Ms. Crook pointed to a pair of earing costing $2,000 that she wanted to buy to be charged to the client’s account. The client didn’t speak English, so Ms. Crook was the one talking to the JCPenney jewelry sales rep. The rep rang up the purchase and the client signed for the purchase on her newly opened account. The package was given to Ms. Crook and they walked out of the store together.
After a month, the client received a statement from JCPenney showing that she owed about $12,000 for the purchase of four separate pieces of jewelry. She told me that she will only pay for the piece of jewelry that she agreed to buy for Ms. Crook. That piece of jewelry was only $2,000. She wouldn’t pay for the other $6,000 of jewelry. I told her that’s not possible because she signed the purchase at the store. As long as she signed for it, she’s liable on the purchase. She can sue Ms. Crook for $8,000 if she wants to because Ms. Crook defrauded her. Clearly, Ms. Crook took advantage of her inability to speak English and trust as her “friend” to buy $12,000 of jewelry but made it appear to her that she was only helping her buy $2,000 of jewelry. Sorry to say, client was a sucker for a con game.
Three months after, the client received statements from 10 credit cards that she never applied for, with total purchases of $70,000! Looks like Ms. Crook went on a shopping spree, using client’s social security, name and good credit to open $70,000 of new credit card debt! She gets more than 30 calls a day from creditors that she has never contacted before, all collecting past due accounts from her. It certainly looks like a massive fraud perpetrated by Ms. Crook on the client. I told the client that I can contact each credit card company to inform them that this is a case of identity fraud, and she would be required to report this matter to the police. But for the JCPenny account for $12,000, she’s on the hook for that one.
I also told her to sue Ms. Crook. However, the client told me that Ms. Crook has left the country and is nowhere to be found. I told the client that she can also get a fresh start by discharging the $82,000 with a Chapter 7 bankruptcy. The client agreed that this is the most effective and simplest way to solve the chaos caused by Ms. Crook. I warned the client to never to give her social security number and personal information to anyone, or the same thing is going to happen again.
Creditor puts a lien on client’s house for $16K in credit card identity theft
The second client is 85 years old. She’s been here for a long time but can’t speak English. She owns a house in Los Angeles. She was in the process of transferring ownership of the house to her children when she found out that there was a judgment lien for $16,000 on her fully paid residence. Apparently, it was made to appear that she was served with summons and complaint to collect the $16,000 owed to a Discover card in her name three years ago. A judgment lien subsequently ensued that attached to her residence. The client has never applied for any credit cards in her entire life. Now she wants to get rid of the lien. Is it possible to do so? Sure it is. Since the judgment arose from an identity theft claim, she will win this lawsuit on the merits after the judgment is vacated. She would have to vacate the judgment on the ground that she was never served with summons and complaint. The proof of service made it appear that she was served on a certain date at a specific place. The truth is on that date, the client was in the hospital and she had the medical records to prove it. Since she was never served with the summons and complaint, she can file a motion to set aside or vacate the judgment because the court never acquired personal jurisdiction over the client. There will be a hearing set for this motion. When the court grants the motion to vacate or set aside the judgment, the lien will also be ordered removed.
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Disclaimer: The foregoing is an expression of opinion and is not meant to be legal advice to any reader. There is no attorney-client relationship established by this article with the reader. If you want to discuss your situation, you have to set an appointment to consult with the attorney. The first general consultation is free.
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Lawrence Bautista Yang specializes in bankruptcy, business, real estate and civil litigation and has successfully represented more than five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 1000 S. Fremont Ave, Mailstop 58, Building A-1 Suite 1125, Alhambra, CA 91803 or at 20274 Carrey Road, Walnut, CA 91789.