Identity Theft - What to Do
Identity Theft has become an issue of major concern in past years. If you have become a victim of identity theft there are steps you can take to protect your good name and, more importantly, your credit.
Place a Fraud Alert on Your Credit Reports
The three major credit reporting agencies have a fraud victim reporting service that allows victims of identity theft to file a report (basically a police report) that blocks fraudulent information from their credit report. The credit reporting company that is alerted must then relay the information to the other two credit reporting companies and the financial institutions that sent the fraudulent information. You are also entitled to a free credit report from all of the credit reporting agencies once you have filed a fraud alert. It would be a good idea, at this point, to request a credit report from all three agencies and review it carefully for more information that might be fraudulent.
Equifax
PO Box 740241
Atlanta, GA 30374-0241
1-800-525-6285
www.equifax.com
Experian
PO Box 9532
Allen, TX 75013
1-888-Experian (397-3742)
www.experian.com
TransUnion
PO Box 6790
Fullerton, CA 92834-6790
1-800-680-7289
www.transunion.com
In addition to submitting a report to a credit reporting agency you'll need to send a report to the information providers (bank, credit card company, etc.) that relayed the fraudulent information. Be sure to include the necessary information to identify yourself (name, address, etc.) and explain, in detail, the accounts that have been activated or used fraudulently.
If the report is accepted by the credit reporting company (they must notify you if they don't) they will place a block on credit reporting information that comes from those accounts. The same goes for the information providers. In addition, information providers can not collect on the debt that is believed to be fraudulent or sell it to another company to collect once they accept the report of identity theft.
For credit fraud specific to credit cards it is necessary to exercise your rights granted under the Fair Credit Billing Act. This states that any consumer's liability is limited to $50 per credit card containing fraudulent usage. To take advantage of this you must:
Write to your credit card company's "Billing Inquiries" address (not the same address that you send payments to). Include all pertinent information like your name, address, account number and any dates and amounts that refer to fraudulent activity on your account. Your letter must reach the creditor within 60 days of the disputed charge. In most cases it's recommended to send a certified letter and obtain receipt notification so there's proof you sent the letter.
When the credit card company receives your letter they have 30 days to acknowledge it. From there they have two billing cycles (no more than 90 days) after receiving the letter to fix the billing error or fraudulent activity.
Identity theft can happen to anyone, anywhere. However, by taking the proper steps you can both prevent future identity theft and relieve responsibility for the fraudulent debt you have become victim to.