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My 90 year old stepdad convinced to sign on a $45,000 loan, what can I do?

My stepdad is in hospice care. He will soon be sent home to continue home hospice care. My mom will be widowed in time. So while preparing to relocate mom and reviewing her finances before relocating her, I discovered that they both have an outstanding loan that somehow is appearing on their credit report of $45,000 that began last January 2015. I know that my stepdad had co-signed for a loan, but now I see this new loan, what can I do.
Status: Open    Jan 23, 2016 - 10:34 AM

Elder Law

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Jan 26, 2016 - 09:50 AM

This might very well be considered elder financial abuse if someone coerced your step-dad into signing or co-signing a loan. It might also be considered to be a contract that is non-binding on him if his condition were evident from the outset by the creditor. You need to find an Elder Law attorney in your area who can dig deeper into this matter.

Feb 10, 2016 - 07:35 AM

The first thing I would do is to look at his bank statements to see if the money was deposited into his account. If not, I would look for a copy of the loan documents. If you cannot find that go to the bank and ask for a copy. You will need power of attorney to do this. If this does not work write a letter to the credit reporting agency stating the debt is disputed and demand written proof of the debt. If he co-signed when he was not competent or was under undue influence you might be able to get the loan voided as to him.
If the money did not go into his account you will definetly need the assistance of an attorney. Look for an elder law or estate planning attorney in your area.
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