Electric Bill in the Wrong Name

At_1254 · ‎09-05-2021

I'm here trying to re-build my personal credit, but I was wondering if I could ask a question about a situation my mother is in. My father owned a small business 50/50 with his friend/business partner. For whatever reason, he put the electric bill for the business in my Mom's name and she was unaware. My Dad passed away a few years ago and shortly thereafter, my Mom signed a business transfer agreement with his partner and he bought her out. He kept the bill in her name over the next few years but apparently stopped making payments early in the pandemic when the moratorium was put in place. Now it has been lifted and he never paid the back balance over the past year (roughly $4000). I assume he was able to transfer the electricity bill into his name or the business name and he is refusing to pay the back owed balance and won't return any of our calls. My Mom found out about it because it showed up on her credit alert (although it doesn't look like it has officially been posted to the 3 bureaus yet).

We will likely have to hire a lawyer, but until that happens, I was just wondering if anyone had any advice on next steps? Likelihood of success?

I'm wondering if we should dispute directly with the bureaus vs taking the partner (now full owner) to small claims court? Thanks!

bass_playr · ‎09-05-2021

Honestly, if that were me, I would file a police report. Seriously. That's identity theft. And while your father is deceased, you can still file a complaint against the partner because he knew of the situation and clearly chose to keep an illegal situation going, for his own benefit.

Keep in mind that any FDCPA issues that might exist otherwise would not apply since this is a business debt, not a consumer one.

I would file a police report and let the authorities address it. You can sue in small claims. You can also hire an attorney. But even if you get a judgment against the partner, that's not a guarantee of payment. A judgment just means you now have to find a way to enforce the court's order. Being in civil court means there's no real repercussions against the partner should he choose to ignore it. But with law enforcement involved, that's a much different story, and sometimes they can apply pressure under the threat of arrest/imprisonment that a civil case just cannot provide. I would not hesitate in lighting his behind up with a police report. Identity theft, especially with that kind of dollar amount involved, is a felony.

At_1254 · ‎09-05-2021

That is very helpful, thank you. I had not considered a police report, that is a good idea. I didn't think it would be a hit to her personal credit either, but I'm worried since it is personally in her name.

gdale6 · ‎09-06-2021

This is acutally fraud, her responsibility ended the day it was all transferred to him. The one who committed the ID theft is dead (the dad). I would report this to the police and then move to sue the business partner for illegally using my name. I would also send a copy of the business transfer to anyone who maybe repoting this on her CR with request to have it removed.

At_1254 · ‎09-06-2021

@gdale6 wrote:
This is acutally fraud, her responsibility ended the day it was all transferred to him. The one who committed the ID theft is dead (the dad). I would report this to the police and then move to sue the business partner for illegally using my name. I would also send a copy of the business transfer to anyone who maybe repoting this on her CR with request to have it removed.

Will do, thanks!