A family member used their social security numbers. These folks had taken in a family member for a few months. Long enough that some serious damage was done. Three credit cards were opened, fortunately, not for large amounts, but since these folks were not aware of these obligations, they ignored the bills, when they came in. In hindsight they could have discovered the problem much earlier.
After a few months, they were getting calls from collection agencies, they finally figured out what had happened. They confronted the family member, who admitted the crime.
When I reviewed all the information with them, we decided to settle the debt with the three collection agencies. I coached them through the process. $1,900 later the debt was settled.
There are a number of different ways to handle these matters. Police reports, legal action or disputes. They decided, the shortest and quickest solution was to work out the settlements.
Once everything was settled, their credit scores are now improving, as they have well established credit already. They plan on selling their existing home and moving. We will be ready to go by then.
Check out this article if you have corrections to make regarding your credit:
By LaToya Irby