mentally retarded person in family maxed out credit cards

It would not be difficult for them to sign up for credit cards via the internet. There is nothing illegal about it. IS this individual under the care of a guardian? This should not cause anyone else in the family trouble but they are still liable for the charges made. COntact the CC's and close the accounts. Have you pulled a copy of their credit reports? www.annualcreditreport.com

See how they are reporting. Also, are you sure they opened the accounts? Is it possible that this is a case of ID theft?

Capacity to enter into a contract generally is a prerequisite for it to be binding/enforceable by the courts. A mentally-challenged individual may be able to argue that they lacked capacity, and therefore avoid the contract.

However, "capacity" is not such a clear-cut term. The condition of itself may not necessarily preclude them from entering into a valid contract. What it will boil down to is whether she knew/understood what she was doing when she applied for the card and when she made charges to it. If she understood what the purpose of a credit card was, and the consequences of using it, she can still be held liable. I think I will take some sort of a doctor's statement to prove otherwise, that she really was not aware of the ramifications of getting/using a credit card.

If she is able to successfully use that argument, though, it won't be a free ticket. The CC/court can require all the merchandise bought on that card be returned.