Expert: Chris G. - 4/7/2009

Question
I have a rather complicated situation.  My credit score at present is around 500.  I have a lot of debt on it, the majority of which was from in my early 20's when I still lived at home and my Mom asked me to purchase things on my cards which she would pay back (and never did).  Some things, yes, are my bad debt.  Others, within the past 5 years, are accounts that I was not aware had been opened in my name until after my Mom passed away (November 2007) and I was going through her things.  She had me listed as an authorized user on some of her credit accounts, however as she did not pay those, they appear on my credit report.  Also, after she passed, I found that she had opened accounts with places like Blair and Figi's, as well as a credit card in my name that I was not aware she had opened.  Upon obtaining a recent copy of my credit report, I have found that these accounts had gone unpaid also.  She had no will, she had no life insurance, and she did not have authorization from me to open these accounts.  I inherited the condo she owned, which was in debt as far as property taxes and and the water and sewer bill, which I am struggling to pay off and fix up (the windows, carpet, furnace and fuse box are all about 40 years old and desperately need replaced) in order to rent out for income as my husband, children and I are renting a 4 bedroom house (5 people in a 2 bedroom condo doesn't work well or we would live there).  Our only income is my one daughter's social security check, my husband's social security check, and what I can make selling Avon and typing letters for people.

Overall: Is there anything I can do about the accounts on my credit report?  I have no way to pay them off, but desperately need to qualify for a loan in order to do the things I need to.  I can't even come up with the $200 to file probate to get my Mom's name off the condo to use it against a loan.  Other than the fact that I didn't live her during the time she opened these accounts, I have no way to prove that it wasn't me...I think she went online for the majority of it, so don't know if there would even be a signature on file to compare.  For the accounts I was an authorized user on - how do I get those removed from my report?  Do you know of any financial assistance programs (or loans I might qualify for given what she did to my credit) that might help me at least catch up the back debt?  I don't qualify for bankruptcy (I have one on my credit report from 2004) because I own the condo now and it is considered that I have equity to file chapter 13 (I can barely make my bills as it is - I can't afford to pay back the courts on debt I didn't run up to start with).  I only have 1 active credit card, which I have had for a year, and pay the balance in full monthly.  This is what has brought my credit score up from the low 400's to 501, however I fear that I'll be losing everything I own in the mean time trying to catch up the back debt.  I can't sell the condo because there is more owed on it than anyone would be willing to pay (and even if I sold it, ALL the money would go toward the debts against it and I would have nothing to even bring up my credit with).

Answer
Hey Melissa,

Thanks for the question. I'm not sure that I will be able to answer everything that is in this detailed inquiry, but I will try my best to answer all that I can.

One of the biggest issues that it sounds like you're currently going through is your credit being hurt by your mother's debts that she added you on as an authorized user. It is my understanding that she can add you as an authorized user without your knowledge because you are not responsible for the debt; however, you can use the credit cards. Despite not being responsible for the debt, the credit history is often reported to your report anyway (and that makes no sense.. i know.) Anytime that there is something on your credit report that you feel is an error, you can dispute the error with the credit bureau and make the creditor prove the debt is owed by you, or else they will remove that entry from your report.

So here's what you need to do: Get all three of your credit reports: Experian, Equifax, and Transunion. List each debt that appears on them in error. Now write a letter to each credit bureau (the addresses can be found on their website.) In the letter, include "I was added as an authorized user to accounts without my knowledge, and I have no financial responsibility to these debts. Please correct these errors within thirty (30) days of receiving this letter." List each of the debts that are not yours and send the letter certified mail so that you can track from when they receive it. They can be a little slow, so after 30 days you might have to send another letter. Keep at it and you will probably see these entries disappear.

I hope that helps. Let me know if you have any other questions.

Chris Gagner