QUESTION: What to do if a loan is issued in your name, but another person received the money?

A situation where an official loan agreement is issued in your name, but another person received the actual money, represents an extreme degree of financial danger. Legally, you bear responsibility for repaying the debt, regardless of any verbal agreements with the actual recipient of the funds. The bank or MFI will demand money from the citizen whose signature is on the contract, so you must not delay resolving the conflict.

First of all, you urgently need to collect all possible evidence that the funds went to another person and you did not use them. This can be bank statements about transferring money from your account to someone else's, receipts, messenger chats, or witness testimonies. In parallel, you should contact the credit organization with a written statement about the current situation to record your position.

If the actual recipient refuses to voluntarily repay the debt or re-register the loan in their name, you must immediately contact law enforcement agencies. Write a statement to the police about fraud or misappropriation of funds. Having a registered police statement will be an important argument in a potential court dispute with the creditor or in protecting your interests.

Remember that time in such cases works against you, as delinquencies ruin your credit history, and the debt continues to grow due to penalties. The earlier you start the legal process of protecting your rights, the higher the chances of minimizing negative consequences and returning the stolen funds or transferring obligations to the real beneficiary.