Expert: Michael Brotherton - 1/5/2009

Question
QUESTION: A friends daughter completely cleaned him out fiancially and was authorized to use his credit card (3) accounts. He discovered the bank accounts  were closed, a equity line of credit on his home (home is deeded to them both) which she
used up $31,ooo.  His wife passed away 13 yrs ago and his daughter was taking care of his checking account and paying his bills etc.  She misused  all his accounts to benefit herself. He is paying the home equity but refuses to pay the credit card$ 9.600 which only she used.   The creditor turned it over to the collection agency.  He has a police
disability pension and also a veterans disability pension.
He only has a small savings now of just under 8,000 for emergencies,    can he be sued for this debt of $9,600?

ANSWER: I'm afraid he probably can be sued if she was an authorized user of the accounts. It is probably too late to have her removed from the accounts but he should do so immediately. His home may be in jeopardy from this if he cannot keep up. Even with some savings he would only be able to maintain for a while.

I know it would be unlikely but he may also file suit against her or file charges of abuse. If he wont, maybe you could contact adult protective services if he is elderly and report the abuse. This can be considered criminal in many cases. I know this is a difficult situation and it would probably distress him severely to file charges on her but she may cause him to lose everything and this is a crime.

If you want to get involved and get her side of things talk to her directly and let her know you know what she did and advise her to help pay it or you will be contacting the authorities. This may be the proper thing to do before taking other action directly. Give her a chance to make good here. Under pressure she may just come through.

I hope this helps. Good luck.



---------- FOLLOW-UP ----------

QUESTION: My friend has contacted his attorney.  He is seeking a Quit Claim Deed to get back full ownership of his home.  He is willing to pay on  the equity line of credit which she used without his knowlege. She is refusing to do so unless she gets a release from her father so he does not prosecute her
As for the credit card debts she made  without his knowlege
total approx. $13,000. in total. I believe in his case since she did all this without his permission or knowlege and along with withdrawing $200,000 and more  from his savings, CD's, Money Markets and from his disability checks
she has committed Elder Financial Abuse.   Would a civil lawsuit release  him from paying  the credit card debts.
Hope you respond. Thanks

Answer
It could but there may be an easier way. Have him file an affidavit of fraud with the bank. If he had no knowledge of her opeining an account then he may be released from the obligation but then they may go after her. Filing suit on her may also work but it probably wont get the debt paid if she doesnt have a lot of resources. You may be able to garnishee her wages after you get a judgment but this can be costly and difficult without some assistance from an attorney.

She can be prosecuted if you want to go that way. I still think you should contact the adult protective services and see what they can do.