Who is liable if a payday loan was received fraudulently?

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Who is liable if a payday loan was received fraudulently?

An ex-girlfriend applied for a received a payday loan in my brother-in-law’s name. He knew nothing about it and the money was deposited into her account which he had/has no access to. A collection agency has begun hounding him for the money. Is he liable or would it be her?

Asked on September 10, 2011 under Bankruptcy Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your brother-in-law had some one else use his identity to get a loan (ex-girlfriend) and she received it, your brother-in-law is not responsible for the loan, the person who used his identity to obtain it is.

Your brother-in-law should do the following regarding the situation:

1. contact the payday loan company and ask for copies of all written documentation concerning the loan advising the representative for the company that his identity was used for the loan by someone else;

2. contact law enforcement immediately about his identity theft as to the payday loan by his former girlfriend so as to make an incident report for possible charges to be filed by the district attorney's office.


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