Identity Theft or Bank Error? How should I resolve?

[Anonymous]

Last fall when I applied for a mortgage, I became aware of a collection account from Navy Federal Credit Union on my credit report. It is coded as a joint account with my then-spouse even though I never authorized the opening of the account. I was aware of the account, but just believed myself to be an authorized user. I disputed the account with the credit bureaus and the dispute came back as validated.

I spoke with an attorney informally (I am also an attorney, but don't deal with credit in my practice), and was advised to reach out to NFCU directly to get clarification on my role on the account and if they thought I was a joint owner to ask for the account opening documents to see whether the account was opened as a result of identity theft, or an administrative error on the bank's part. I did as advised and unfortunately, NFCU no longer has the account opening paperwork (they sent me a letter stating this), but now I don't know what I am supposed to do. The previous debt validation was because the account had been paid from my bank account, which of course it was because I didn't understand after I lost my husband that I was not responsible for his debts and continued paying his bills for almost 2 years (until 2015) before I learned any different.  

I was told to go through the FTC and then file an Identity Theft Affidavit and send copies to the credit bureaus to get the item removed from my reports. But when I researched the process here on myFICO, it seems like the FTC complaint assistant has changed. It keeps sending me to the CFPB website. Can I skip the FTC and CFPB altogether and just speak with law enforcement even though I am still not 100% certain that this is not the result of the bank setting up the account wrong in their computer system? Is there someone at NFCU other than credit card servicing that might be able to help me fix this and bypass law enforcement and the credit bureaus entirely? The other priority I have is preserving my relationship with NFCU if possible because I have always had good experiences with them. But I am stuck as far as what to do right now. Help!!!

[DONZI]

Hello,

I'm no expert but I do like Columbo

It seems maybe getting all the specific dates in order of NFCU account creations (and other key dates) would help provide clues. It sounds like you are normally able to walk into a brick and mortar branch?

Ask for other specific things which they should(?) have on file, legal retention requirements of various docs -- signature cards, etc.

Are there backup/archives (fiche, scans/images, branch cameras, etc)?

Is the person who opened the account still working there? Known by/to your ex?

Request the acct opening documents for any other accounts older or close to the date the joint account was opened (if wanting to check for consistent procedures)

With dates, acct openings and all correlated with normal operations of acct opening, retention times, etc. maybe something else will be useful?

EG: new accounts may require a new signature card even within the same institution... and may be required on file until acct closing?

..if none for that date of acct opening then it's, well an error...or evidence of an error maybe?

Do you know the specific branch it was opened?  ..online? DocuSign?

..verify if you were in/out of town when the account was opened?

Can one person even open a joint account without both parties present in a brick and mortar?

What is required to open a joint account if done online?

..could be more easy to do online, if you have had a long relationship with NFCU -maybe- they bent the rules for your ex due to familiarity?

Sorry about the issue(s) you're facing, I hope you find a solution.

[RobertEG]

 If you cannot obtain the actual account opening documents, the next best thing is to rely upon the creditor's own independent statement of the content of those documents, and thus your responsibility for the account.

That independent statement is readily accessbible from the CRA in the form of the ECOA (Equal Credit Opportunity Act) code they provided to the CRA when reporting the account.

When reporting the account, the common credit reporting manual, titled the Credit Reporting Resource Guide, requires that the creditor provide, as field code 37 of the base segment, and field 10 of the J1 and J2 segments of the consumer's credit file, the appropriate code that reports the consumer's responsibility under the account.

Those codes and their designation are:

1    Individual account  (the consumer has contractual responsibility for the account and is primarily responsible for its payment)

2    Joint account  (the consumer has contractual responsibility for this joint account)

3    Authorized user  (the consumer is an authorized user of this account, but another party has contractural responsibility)

5    Co-maker of guarantor  (the consumer is the co-maker or guarantor for this account, and becomes responsbible should the primary account holder default)

7    Maker    (the consumer is the maker of the account, but there is a co-maker should the consumer default on the account)

Those are legal statements by the creditor of your status, and can reasonably be relied upon in determination of your responsibility.

If the creditor has reported to your credit file that your ECOA code is 3, you have a valid argument that your are only an AU and not contracturally responsible.  Thus, remedy would simply be to remove yourself as an AU

However, if the creditor reported ECOA code 1, 2, 5, or 7, your account records with the creditor at time of reporting was that the documents asserted you as a joint account owner or as or with a co-signer.  In that event, you could reasonbly file a police report alleging that you never executed any such documents, and thus the account was reported with the stated responsibility based on unauthorized use of your identity in the supporting documents.

It is not necessary, under FCRA 605B, for you to provide supporting documents or to "prove" your assertion of identity theft.

An allegation contained in a  sworn police report is sufficient.

[DONZI]

@RobertEG- I have to say, that sounds SO much better than my approach. The clarity and confidence of your advice has me feeling things are going to be okay for @Anonymous .