As a parent, setting your child up for success is one of the most important things you can do to help them prepare for adulthood. This includes teaching them how to make wise financial decisions and the importance of being a good consumer. However, when your child receives a letter in the mail in regard to a debt in their name or applies for their first credit card as an adult only to be denied due to an outstanding debt, it can be cause for concern. Unfortunately, this may not be as simple as chalking the occurrence up to an error. The following blog explores why a child may have debt in their name and the importance of working with a Michigan child identity theft attorney to help you remedy these matters.
Why Is My Child Receiving Debt Notices?
When your child receives a notice in the mail regarding a debt in their name, you may assume that this is simply an error. While this can be the case in some instances, such as if your child shares a name with their parent or another family member, or debt if they are the authorized user of a credit card in your name, in many instances, this is due to identity theft.
Children are often the targets of identity theft because they are considered a “blank slate.” Children have no credit, which is ideal for thieves as they do not have to worry about being denied due to poor credit scores. In addition, parents rarely check their credit scores as they do not have a reason to. As such, the debt on a child’s credit report can go unnoticed for years. Unfortunately, you’ll find that family members are often the perpetrators of this offense, as they have access to a child’s personal information.
What Can I Do to Remedy This Matter?
If you discover debt in your child’s name, it’s imperative to take the necessary steps to dispute this information. One of the most important things you can do is file a Minor Declaration Form, which allows you to show that the individual on the account is a minor and therefore unable to engage with lenders. In addition to the form, you must submit a considerable amount of supplemental documentation proving the age of your child as well as your relationship to them as their parent or legal guardian.
After you submit this information, you should ask that a credit freeze be placed on their accounts. This helps lock the account, preventing creditors from extending loans in their name. Once your child becomes an adult, they can have the freeze removed so they may begin applying for their own loans.
As you can see, these matters can be incredibly serious and have a lasting impact on the financial future of your child. As such, it is in your best interest to connect with an experienced attorney to explore your rights and legal options during this time. At Lyngklip & Associates, we understand how troubling it can be to find that your minor child is in debt, which is why we are dedicated to helping you through this process. Connect with us today to discuss your circumstances with a member of our firm.
