Credit Card Addiction

What Can A Parent Do If An Adult Child Is Addicted to Credit Cards?

My son-in-law has a severe spending problem and is not open to counseling.

My question is: is there a procedure for contacting credit agencies or credit card companies informing them that my daughter will not be liable for any debt incurred on a credit card they may issue?

We want to make credit cards unavailable to her.

So, any suggestions would be appreciated.

Thank you.

Rich

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It will be difficult, especially if your daughter and son-in-law live in a community property state.

Since so much depends on the law of the state where your daughter and son-in-law live, she might want to consult with a local lawyer. If you daughter and son-in-law are over the age of majority, there’s not much you can do as parents.

The lenders entered contractual relationships with them, not you, and are unlikely to listen to you. So if your daughter is enjoying all the spending, there’s not a lot you can do about it, other than not giving them any financial support.

(Remember money is fungible. If you give them money for your grandchildren’s education, that might free up enough for them to take a vacation to the Bahamas – this just happened to a close friend of mine, much to his chagrin.)

If your daughter is willing, here are some steps she can consider.

If you daughter was a co-applicant on the cards, her situation will be slightly different than if the card was issued based on the husband’s credit alone and she is just an additional card holder.

She should write (certified mail, return receipt requested) to all credit card companies and ask that all accounts be canceled. She should add her husband has a spending problem and that no further credit be extended to him.

If she was a co-applicant on the account and the credit line was offered based on joint income, the bank will close the account. Whether they grant new credit based on the husband’s income alone is up to them.

Even if she’s only an additional card holder and credit was issued based solely on the husband’s income alone, the bank will probably close the account if they see trouble brewing.

She will most likely be responsible for all debt run up to date. Also she’s the hook for secured debt like mortgages and car loans, especially if she signed for them.

If she manages to close all open accounts, she will then have to write to any bank she knows her husband is trying to obtain credit from. Her main purpose is to keep banks from extending credit and notifying them of her husband’s problems.

If, in spite of her attempts, the lenders extend credit, when they come around to try collect on the debt, she can pull out her letters. She might be able to free herself from the obligations and might even have a cause of action against the banks for damages caused by the lenders’ feeding her husband’s addiction to credit. She can also use this letters to clear up her credit report if it is eventually damaged by her husband’s actions alone.

From time you time, you will see notices in the classified ad section of newspapers by people renouncing some relative’s debt. Unfortunately these carry no weight in most jurisdictions.

Your daughter should consult a lawyer. However, this is likely to lead to martial problems if the husband finds out. You as parents will just have to it by and observe as things develop. There’s not much you can do about it.

I hope you can convince them to cut up the cards and buy with cash.

I wish you luck.

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