What to Do If You Are A Victim of Identity Theft
The only good news about the rise in identity theft as that it has naturally produced more resources than ever before to help victims. It is still a hassle to deal with the credit bureaus, creditors and collection agencies to deal with correcting the errors on your report but it is not as bad as it was before.
If you do find yourself to be the victim of identity theft then your first stop should be at the website of the Federal Trade Commission at www.consumer.gov/idtheft. You can also call 1-877-FTC-HELP (1-877-382-4357) to get free information in the form of brochures about how to deal immediately with your identity theft.
Another two great resources for individuals who have experienced identity theft are the Identity Theft Resource center (www.idtheftcenter.org or 1-858-693-7935) and the Privacy Rights Clearinghouse (www.privacyrights.org).
When it comes to dealing with the financial institutions they can be remarkably responsive to identity theft victims whereas others will treat you like you are a liar until you can prove that you don’t owe the money charged up by the identity thief.
Here is a breakdown of what you need to do if you are a victim of identity theft –
Keep notes of every conversation you have…Keep records of everything you discuss and who you discuss it with. Remember to include dates, times and first and last names. Back up these conversations in writing with letters sent certified mail (return receipt requested.)
Add a fraud alert to your credit file and make sure the alert is on for seven years rather than for a shorter period. Fraud alerts can make your credit more difficult to obtain but you can also cancel an alert later if you have to.
All three bureaus have joined together to create a fraud alert system. If you call one credit bureau then the others will be notified of the fraud.
The numbers to call to report your fraud are
Equifax —1-800-525-6285
Experian – 1-888-397-3742
TransUnion – 1-800-680-7289
The credit bureaus are also required to send you a free credit report after you have reported a fraud alert. Also they are required to supply you with the contact information of any creditors that you don’t recognize on your credit report.
If you are a California resident you also have the option of putting a “freeze†on your credit reports. This prevents anyone from accessing your credit reports for any reason. You can access it by using a personal identification number to free your file when you need to apply for credit. The freeze is free of identity theft victims and available for a fee to anyone else. For more information on this very successful program it is at The California Office of Privacy Protection at www.privacy.ca.gov.
Close your accounts and have banks or lenders issue you new ones. If someone is using one of your existing credit or bank accounts to run up charges the bank or lender typically closes the account and issues a new one along with some kind of form or affidavit to report the fraud. If new accounts have been opened the financial institution also asks you to fill out a fraud affidavit. Many accept the uniform fraud affidavit that is widely available on the FTC website at www.ftc.gov.
Contact the police or local sheriff. Some jurisdictions are wonderful about taking identity theft reports and some aren’t even though in both Canada and the United States. It is a federal crime to assume someone else’s identity. The key is to be persistent and bring as much documentation of the fraud that you can to support your claims. The idea is to get the law enforcement agency to list the affected accounts on the report as a police report can help enormously in getting problems resolved with creditors.
Contact the bank and checking verification companies. If the crooks set up phony bank accounts in your name or stole check you need to close those accounts and stop payment on any outstanding checks. Your next step would be to open new checking and savings accounts and contact the major check verification companies to report the theft. Here are some of those companies:
• CheckRite – 800-766-2748
• ChexSystems – 800-428-9623
• Certigy – 800-437-5120
• International Check Services – 800 -526 –5380
• Telecheck – 800-710-9898
Contact the collection agencies … this is not as easy as it sounds. Dealing with collection agencies can be especially aggravating because they are used to dealing with bad debts every day and have heard every excuse ever invented for not paying one back. One excuse that they hear frequently is a claim of identity theft.
To complicate matters even further most collection agencies have employees that are unreasonable, unethical and abusive in their dealings with consumers. Here are some suggestions on how to cope with this
In addition to keeping good notes and following up each of your phone calls with a collection agency in writing (certified mail, return receipt requested) ask for a written statement from the collector outlining any agreements or decisions you discuss. Ask for confirmation in writing that you don’t owe the debt and the account has been closed.
Stay cool even if collectors are being abusive to you. The more professional you act the more likely the collection agency will be to cooperate with you.
When speaking to a collection agency ask to speak to a supervisor or the company’s fraud investigator. Customer service representative are more likely to treat you like another debtor trying to get out of a payment.
Make sure you tell the collector that you are a victim of identity theft and that you are not responsible for the account. Don’t say, “I dispute†this account because collection agencies associate that word with people who are trying to evade paying a legitimate debt.
Keep a record of the time you spend restoring your credit. If the thief is caught you might be eligible for financial restitution.
Get legal help …if you find yourself floundering then there is no reason why you should not get legal help to try and solve the problem. You can get referrals for lawyers that specialize in identity theft from your local bar, legal aid office or the National Association of Consumer Advocates at 202-452-1989.
Don’t be intimidated … collection agencies are notoriously tough on people. Don’t be bossed into paying bills you don’t owe just to get a creditor off your back. And don’t get so overwhelmed that you feel you must file for bankruptcy!
If a creditor or collector threatens you with a lawsuit, jail time or other punishment point out calmly that such threats are violations of federal debt collecting and credit reporting laws. Then report them to the Federal Trade Commission and your state attorney general’s office.