I'm unclear as to what the issue really is. Your daughter gave someone else your own personal information to use to get a loan for $12,000?
I wouldn't pat my daughter on the back for that action if that's what happened. If she had a good heart, she wouldn't have put my own credit at risk to "help" a friend get $12k for free.
There's probably nothing written down between the two - no agreement in place for the friend to repay the $12k. You have probably have to go to the police and file charges against the friend in order to initiate any legal action.
But I'm afraid you're on the hook for the $12k. I would see an attorney first and see if you have any recourse. And I would also caution you about giving out your personal information to any - your daughter included.
