Spouse Opened Credit Card in My Name - Is This Legal?
'My spouse opened a credit card in my name, but I didn't authorize it.'
You and your spouse share everything, so it might seem legal for a spouse to open a credit card in your name, right? Wrong.
If this happens, you are entitled to take legal action against your spouse. No matter how close you are to a family member, opening credit card accounts in anyone's name, without their consent, is never okay.
Here's what you should know in the event of credit card fraud, even at the hands of your spouse.
Opening a Credit Card In Your Spouse's Name
Opening a credit card in your spouse's name can be illegal. Even if you know your spouse's most private information, such as their Social Security number, birth date, employment information, and income, it doesn't give you the right to open credit cards in their name without their permission.
In many states, opening a credit card account in someone else's name is credit card fraud or identity theft and can result in legal action. This might seem harsh, especially if your spouse opened the credit cards. This is because you accrue debt for your spouse, who is financially responsible for the fraudulent accounts even though they didn't open them.
How to Check if Someone Opened an Account in Your Name
If you think someone opened a bank account in your name, here's how to find out for sure.
First, pull your credit reports Annualcreditreport.com offers access to a free credit report weekly from all three credit bureaus.
Carefully review your credit reports for any new credit card names you didn't apply for but appear on your credit report. Read all three credit bureaus' reports because each bureau reports different credit information.
While reviewing your credit report, look at all existing credit card balances, payment information, and other personal information to ensure no other identity fraud has occurred.
If you find a new credit card account you didn't apply for, look into it to see if it resulted from identity theft.
How Can Someone Open a Credit Card in My Name?
You might think, 'How was a credit card opened in my name?'
It's easier than you think.
If your spouse or another close family member has your personal identifying information, that's all it takes.
Credit card companies don't look into the application too extensively. They ask for basic information like your name, address, birth date, and Social Security number. They also ask for information about your employer and income, but that's it.
You don't need to supply ID, paystubs, or other financial information. If approved, there's a new account in your name, even though you didn't apply for it.
What to Do if Someone Opens a Credit Card in Your Name
So what happens if you discover unexpected accounts on your credit report? Here are a few simple steps to take care of the fraudulent accounts.
Dispute Fraudulent Charges
The first step is to dispute the fraudulent account or charges you find on your credit report. Note which credit bureau reported the information and file the dispute with them. Experian, Equifax, and TransUnion each have a different method for disputing information, but you can find each process online.
Cancel the Account
Next, call the credit card company and cancel the account. You should tell them the truth about the identity theft so they can take the proper steps.
Some credit card companies will close the account immediately, but others may require an FTC identity theft report first.
Change Passwords
After you report identity theft, you must change all passwords, not just the password to the account hacked, to avoid any more fraud.
Collect Evidence
If you must file a police report to report identity theft to your creditors, you may need evidence, including the following:
Your most recent credit report
Credit card statements from the accounts created illegally
Letters or correspondence from the family member that opened the account
Confront Your Spouse
At some point, you must confront your spouse about the suspicious activity. If you ignore it, you could be held responsible for the debt. However, your safety is essential. If you worry your spouse may become violent, consider involving the police and letting them confront your spouse about the identity theft.
Decide Your Next Steps
What happens next is most important. You must address the issues within your marriage, learn how to fix your credit, and decide whether to press charges.
First, decide how you'll handle the situation. You must press charges if you want the debt erased from your credit report or reported as fraudulent. This may not be easy because it's your spouse. Bringing up criminal charges can be devastating to your marriage.
If you decide not to press charges, consider your other options. Conversations are essential, but you may not be equipped to handle them yourself. A third party, such as a counselor, can help you sort through the issue.
Frequently there are deep-seated reasons for financial infidelity, and discovering those reasons and dealing with them together may help rectify the issue.
Of course, there's always the option to file for divorce, but most couples try to do what they can to save the marriage first. If this isn't the first occurrence, or there are other new accounts you didn't authorize in your name, you should reconsider.
Consider Identity Theft Protection
Anyone that is a victim of identity theft should consider identity theft protection. This protection monitors your credit reports, bank accounts, and other financial accounts for suspicious activity.
If any unauthorized use of a credit card by a family member or someone else is suspected, you'll receive an alert in real-time so you can stop the action before it causes more negative consequences.
Negative Repercussions of Spousal Identity Theft
Spousal identity theft can cause more issues and problems in your marriage. Here are a few ways it can affect you and your family.
Damaged Credit Score
If your spouse racks up credit card debt in your name, it can significantly affect your credit scores. New accounts, high debt, and bad payment history can ruin your credit score. Even if you can prove credit card fraud, it can take its toll on your credit scores until you rectify the issue.
Increased Debt
If your spouse racked up a lot of debt, you might be responsible unless you report the theft to the Federal Trade Commission, the police, and your credit card company.
Even if you report the theft, it could take a while to figure out the situation, leaving you with a large amount of debt on your shoulders.
Distrust
Of course, any type of financial infidelity can cause feelings of distrust in your marriage. For example, unauthorized use of credit cards or opening credit cards in your name without your permission hurts your relationship and finances. In addition, it can make it hard to trust your spouse again, especially without counseling.
FAQs
Am I Responsible for My Spouse’s Debts From a Credit Card They Opened in My Name?
If your spouse applied for a credit card in your name without your permission, you must prove it was credit card fraud, or you are responsible. It's essential to file a police report and an FTC identity theft report to erase the debt.
What Does an Account You Don’t Recognize on Your Credit Report Mean?
Usually, if you don't recognize an account on your credit report, it's a sign of identity theft. Investigate the issue to determine if that's the case. In some cases, it could be that the credit card company changed names, and it's an account you own.
Can You Go to Jail for Using Someone Else’s Credit Card?
If you do not have permission from the cardholder to use their credit card, it's considered credit card fraud and is a punishable crime.
Can Someone Use Your Social Security Number With a Different Name?
It is illegal to use your Social Security number with a different name. If you suspect anyone used your SS number, report it immediately.
What Happens to My Credit if I’m a Victim of Identity Theft?
It can take some time to repair your credit, but with the right steps, including a police report and FTC identity theft report, you can get your credit repaired from the damage of the identity theft.
My Spouse Opened Credit Card in My Name - The Bottom Line
If this happens to you, you have options. First, consult with your spouse to clear the air. If, after talking, you determine it's identity theft, and you want to press charges, file a police report and take the necessary steps to protect yourself.
Want to level up your game around money in your relationship? My free quiz will help you learn your Couple’s Money Personality Type AND how you can grow from there!
Adam Kol is The Couples Financial Coach. He helps couples go from financial overwhelm or fighting to clarity, teamwork, and peace of mind.
Adam is a Certified Financial Therapist-I™, Certified Mediator, and Tax Attorney with a Duke Law degree and a Master's in Tax Law from NYU. He is a husband, dad, and musician, as well.
Adam's wisdom has been shared with The Wall Street Journal, the Baltimore Ravens, CNBC, NewsNation, and more.
