ADVERTISEMENT

Cable service opened in daughter's name goes unpaid

Daughter said OK to use her name, but now regrets the decision

By  |  Published: January 18, 2017

Opening Credits
Columnist Erica Sandberg
Erica Sandberg is a prominent personal finance authority and author of "Expecting Money: The Essential Financial Plan for New and Growing Families." She writes "Opening Credits," a weekly reader Q&A column about issues for people who are new to credit, for CreditCards.com.

Ask a question.

'Opening Credits' stories

Question Dear Opening Credits,
My mother had asked me to put the cable bill in my name when I was around age 20 due to her not being able to put it in her name because of her own debt with the cable company. I was dumb and guilt-tripped into signing a new contract for her. Now being 25 years old and having a mother who is a long-term alcoholic with anger issues, she wants to punish me by not paying the bill. Until now, I had totally forgot it was in my name, until I was called by the cable company. As of today, the account has not yet been sent to collections, but I don’t want it to be. Can I still report this as fraud or some type of theft? – Lauren

Answer

Dear Lauren,
I’m afraid that you will be held liable for amounts owed and your credit rating will be impacted, should your mother not take immediate action. Your name is on the contract, which means the company can turn to you for payment if the debt goes delinquent. Although guilt may have prompted you to sign on the dotted line, it appears that you did take that action as a fully functioning adult. Identity theft or fraud occurs when someone opens an account using your personal information without your permission or knowledge. 

That said, I’m sorry your mother is behaving terribly. You need to end this arrangement quickly. Call the cable company to explain what happened, and tell them you want to terminate this account as soon as possible. There may be a fee to escape the contract early and you could be on the hook for back bills, but go ahead and ask if they can give you a break given the circumstances. They probably won’t, but I’m a big advocate of at least trying.

If your mother doesn’t send what she owes, I strongly urge you pay. Ignoring the bill is the worst thing you can do. The cable company won’t wait too long before it sends the account to a collection agency. Then that third party collector will notify the credit reporting agencies that there is an outstanding debt, which will appear on your reports. You do not want that to happen.

As a young woman, you most likely have a lot going on in your life. You probably want to do things like secure a job or lease an apartment. Many landlords and some employers check credit reports to see if the applicant is financially responsible. If they see an account in collections, it could be held against you. If it does go that far, you may be able to offset some damage by explaining what happened in a 100-word statement in your credit report. Whoever pulls your report may see your statement, and it could have some positive influence.

Lenders, such as automobile financing or credit card issuers, are another story, though, as they depend more on credit scores to make decisions, and the 100-word-statement won’t have any impact on those numbers. A bad debt will sink scores dramatically, especially if the account has recently been assumed by the collector.

If the debt does go bad, the collector will call you to demand payment, which could be a daily occurrence. That’s not pleasant. Worse, these agencies have the right to sue consumers for an unpaid debt.

So, if you can afford to assume the final costs of this account, do so. I know this is not what you bargained for, but maybe you can inspire your mom to change her mind with some cajoling. If you have any siblings or close relatives who can help you with the debt, turn to them. You should not have to deal with this on your own if others can assist you. I wish you the best of luck.

See related: Familiar fraud: When family members steal your identity, How to say no to a loved one's money requests

Meet CreditCards.com's reader Q&A experts

Does a personal finance problem have you worried? Monday through Saturday, CreditCards.com's Q&A experts answer questions from readers. Ask a question, or click on any expert to see their previous answers.

ADVERTISEMENT
ADVERTISEMENT

Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.




Updated: 08-20-2017

ADVERTISEMENT


Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.


ADVERTISEMENT