How do I verify whether the credit card debts are actually my spouse’s debts, especially if I suspect identity theft? – North Carolina

Short Answer

In North Carolina, the most reliable way to verify whether a credit card debt is truly a spouse’s debt is to match the debt to objective records: the spouse’s credit reports, the original account-opening documents, and the creditor’s billing and payment history. If identity theft is suspected, the process usually includes getting a law enforcement incident report, placing credit freezes, and disputing the account with the creditor and the credit bureaus using documentation that shows the account was not authorized.

Understanding the Problem

In North Carolina, when credit card balances show up during a time of serious illness and financial change, a common question is: can a spouse confirm whether the accounts were opened and used by the spouse, or whether someone else used the spouse’s identity to create the debt. The decision point is whether the debt can be tied to the spouse through account ownership and authorized use, as shown by credit reporting and creditor records. This question often comes up when a spouse is on Medicaid and an inheritance may be distributed, because unexpected debts and collection activity can create urgency to sort out what is real and what is fraudulent.

Apply the Law

Under North Carolina law, identity theft involves someone obtaining, possessing, or using another person’s identifying information with fraudulent intent to make financial or credit transactions in that person’s name. When identity theft is suspected, North Carolina law allows the suspected victim to make a report to local law enforcement where the person resides, and the agency may take the complaint and provide an incident report. Separately, North Carolina law also gives consumers the right to place a security freeze on a credit report, which can help stop new accounts from being opened while the situation is investigated.

Key Requirements

Confirm the account is actually in the spouse’s name: Verify that the spouse is the account holder (not merely an authorized user) by comparing the creditor’s records and the credit reports to the spouse’s identifying information.
Document lack of authorization if fraud is suspected: Gather facts that show the spouse did not apply for the account or authorize charges (for example, mismatched addresses, unfamiliar purchases, or accounts opened during hospitalization).
Use the formal identity-theft and credit-freeze tools: Obtain a law enforcement incident report and place credit freezes so disputes with creditors and credit bureaus are supported by documentation and future damage is limited.

What the Statutes Say

N.C. Gen. Stat. § 14-113.20 (Identity theft) – Defines identity theft and lists types of “identifying information,” including credit card numbers and account numbers.
N.C. Gen. Stat. § 14-113 (Investigation of offenses) – Allows a person who reasonably suspects identity theft to report it to local law enforcement and obtain an incident report.
N.C. Gen. Stat. § 75-63 (Security freeze) – Provides the right to place and lift a security freeze and sets timing requirements for consumer reporting agencies.

Analysis

Apply the Rule to the Facts: The key task is separating legitimate, spouse-authorized credit card accounts from accounts opened or used through identity theft. Because the spouse has had serious medical events and is on Medicaid, it is common for family members to discover unfamiliar accounts or collection notices while preparing for an inheritance distribution. The verification process should focus on (1) whether the spouse is the true account holder according to creditor records and credit reports and (2) whether there are indicators the spouse did not authorize the account opening or charges, which supports an identity-theft report and disputes.

Process & Timing

Who pulls records: The spouse, or an authorized representative acting with legal authority (for example, a valid power of attorney). Where: The three nationwide consumer reporting agencies (credit reports) and each creditor or debt collector (account records). What: Request full account documentation (application or account-opening record, billing statements, payment history, and any address-change history). When: As soon as suspicious debt is discovered, before making payments that could be treated as accepting responsibility.
Lock down new credit: Place a security freeze with each nationwide consumer reporting agency. Under North Carolina’s security-freeze statute, timing depends on how the request is made (mail versus phone/electronic), so it is important to submit requests promptly and keep confirmations and PINs/passwords.
Create a paper trail for disputes: File a local law enforcement complaint/incident report for suspected identity theft and keep a copy. Then send written disputes to the creditor and to the credit bureaus with supporting documents (identity documents, proof of residence, hospitalization timeline if relevant, and the incident report number/copy). Keep copies of everything and send disputes in a trackable way.

Exceptions & Pitfalls

Authorized user vs. account holder confusion: A spouse may appear on a card as an authorized user without being legally responsible for the balance; creditor records should confirm who signed for the account and who is the primary obligor.
Accidentally validating the debt: Making payments, entering payment plans, or verbally “agreeing” to a debt before verification can complicate later disputes. Verification should come first whenever possible.
Representative authority issues: If the spouse is incapacitated, creditors and credit bureaus often require proof of authority (such as a valid power of attorney) before releasing information or accepting disputes from someone else.
Mixed legitimate and fraudulent activity: Some accounts are legitimately opened but later used fraudulently after a card is lost or information is stolen; disputes may need to separate unauthorized charges from the underlying account.

Conclusion

In North Carolina, verifying whether credit card debts are truly a spouse’s debts requires matching each claimed debt to objective records: the spouse’s credit reports and the creditor’s account-opening and billing documentation. If identity theft is suspected, the most effective next step is to obtain a local law enforcement incident report and place a security freeze, then use that documentation to dispute the account with the creditor and the credit bureaus as soon as the suspicious debt is identified.

Talk to a Estate Planning Attorney

If a spouse is on Medicaid and an inheritance may be distributed, unexpected credit card debts and suspected identity theft can create real planning and timing problems. Our firm has experienced attorneys who can help sort out what documentation is needed, how to coordinate disputes, and how this may affect next steps. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.