Dispute Identity Theft on Credit Report

How to Dispute Identity Theft on Your Credit Report: A Comprehensive Guide

If you find fraudulent activity on your credit report due to identity theft, take these immediate steps: (1) File a report with the Federal Trade Commission (FTC) at IdentityTheft.gov. This generates an official Identity Theft Report and an FTC affidavit that will be key for your disputes. (2) Contact all three major credit bureaus – Equifax, Experian, and TransUnion – to place a fraud alert on your credit file and dispute the inaccurate information. This guide provides a detailed walkthrough of these steps, along with practical advice based on real-world experience.

I understand the frustration and stress that comes with discovering identity theft. It happened to me while I was launching a new website. I received an unexpected alert about a credit card application I never made. It was a clear sign of identity theft, and I knew I faced a challenging process to dispute the fraudulent activity on my credit report. Let’s get started on how you can resolve the same.

Understanding Identity Theft and Your Credit Report

Identity theft occurs when someone uses your personal information (like your name, Social Security number, or credit card details) without your permission to commit fraud. This can include opening new credit accounts, making unauthorized purchases, or even filing taxes in your name. Your credit report is a detailed record of your credit history, including payment history, credit accounts, and any bankruptcies or liens. Identity theft can severely damage your credit score, making it difficult to get loans, rent an apartment, or even secure a job.

The Importance of Regular Credit Report Checks

I learned the hard way that regular monitoring is crucial. Had I been more diligent in checking my credit report, I might have caught the fraudulent activity sooner. You are entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months through AnnualCreditReport.com. Make it a habit to stagger these requests throughout the year so you’re essentially reviewing one report every four months. Many credit card companies and financial institutions also offer free credit monitoring services. Sign up for these!

Immediate Actions to Take

These are the critical steps to take immediately upon discovering fraudulent activity on your credit report.

1. File an Identity Theft Report with the FTC

This is the absolute first step. The FTC report serves as proof of identity theft and grants you certain rights under the law.

• Visit IdentityTheft.gov: This is the official FTC website dedicated to identity theft.
• Create an Account or Log In: Follow the instructions to create an account or log in if you already have one.
• Fill Out the Form: The form will ask for detailed information about the identity theft incident, including the stolen information, the date of the incident, and any actions you’ve already taken. Be as accurate and complete as possible.
• Print the Identity Theft Report and Affidavit: Once you submit the form, you will receive an Identity Theft Report and an FTC affidavit. Print these documents. You will need them for disputing the fraudulent information on your credit reports.

2. Place a Fraud Alert on Your Credit Reports

Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit report. Once you place an alert with one bureau, they are required to notify the other two. There are three types of fraud alerts:

• Initial Fraud Alert (1 year): This is the standard fraud alert. It requires businesses to verify your identity before extending credit.
• Extended Fraud Alert (7 years): If you have filed an FTC Identity Theft Report, you can place an extended fraud alert. This requires creditors to contact you directly to verify your identity.
• Active Duty Military Alert (1 year): This is for active duty military personnel and includes similar protections as the initial fraud alert.

To place a fraud alert:

• Equifax: Call 1-800-525-6285 or visit their website.
• Experian: Call 1-888-397-3742 or visit their website.
• TransUnion: Call 1-800-680-7289 or visit their website.

3. Freeze Your Credit Reports

A credit freeze, also known as a security freeze, restricts access to your credit report, making it very difficult for identity thieves to open new accounts in your name. Unlike a fraud alert, a credit freeze requires you to unfreeze your credit report whenever you need to apply for credit. This is free.

Contact each of the three credit bureaus separately to freeze your credit report. You will need to create an account and verify your identity.

• Equifax: Visit their website.
• Experian: Visit their website.
• TransUnion: Visit their website.

4. Dispute Inaccurate Information on Your Credit Reports

This is where the real work begins. You need to carefully review your credit reports from all three bureaus and identify any fraudulent or inaccurate information. This includes unauthorized accounts, incorrect personal information, and fraudulent inquiries.

• Obtain Your Credit Reports: Get free copies of your credit reports from AnnualCreditReport.com.
• Review Each Report Carefully: Look for any accounts you didn’t open, addresses you don’t recognize, or inquiries you didn’t authorize.
• File Disputes: You can dispute errors online, by mail, or by phone. I strongly recommend doing so in writing via certified mail with return receipt requested. This provides proof that the credit bureau received your dispute.
• Include Supporting Documentation: Include copies of your FTC Identity Theft Report, driver’s license, Social Security card (redacted), and any other documents that support your claim.
• Be Specific: Clearly explain the error and why you believe it is incorrect.
• Send to Each Bureau Separately: You must dispute the inaccurate information with each bureau individually.

Here is a sample dispute letter (modify to your specific situation):

[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]

[Date]

[Credit Bureau Name]
[Credit Bureau Address]

Subject: Dispute of Inaccurate Information on Credit Report

Dear [Credit Bureau Name],

I am writing to dispute inaccurate information on my credit report. I am a victim of identity theft and have filed a report with the Federal Trade Commission (FTC). A copy of my FTC Identity Theft Report and affidavit are enclosed.

Specifically, I am disputing the following items:

*   [Account Name]: Account number [Account Number] was opened fraudulently in my name on [Date]. I have never authorized this account.
*   [Address]: The address [Address] listed on my credit report is not my address.

I am requesting that you investigate these items and remove them from my credit report immediately. I have enclosed copies of my driver's license, Social Security card (redacted), and FTC Identity Theft Report as supporting documentation.

Please send me written confirmation of the investigation results and any corrections made to my credit report.

Thank you for your prompt attention to this matter.

Sincerely,
[Your Name]

Monitoring and Follow-Up

The credit bureaus have 30 days to investigate your dispute (45 days if you recently placed a fraud alert). During the investigation, they will contact the creditor or source of the information to verify its accuracy.

• Review the Results: Once the investigation is complete, the credit bureau will send you a written notice of the results. If the disputed information is found to be inaccurate, it will be removed from your credit report.
• Follow Up: If the credit bureau doesn’t remove the information, or if you disagree with the results of the investigation, you have the right to request that a statement of dispute be added to your credit report. This statement will be included whenever your credit report is provided to lenders or other parties.
• Continuous Monitoring: Even after the fraudulent information is removed, it’s important to continue monitoring your credit reports regularly for any new suspicious activity.

Additional Steps to Consider

• Contact Creditors: Contact any creditors where fraudulent accounts were opened and close the accounts.
• File a Police Report: While an FTC report is crucial, filing a police report can also be helpful, especially if the identity theft involved serious financial losses.
• Change Passwords and PINs: Change all of your passwords and PINs, especially for online accounts.
• Consider a Credit Monitoring Service: While free credit monitoring options are available, paid services often offer more comprehensive protection, such as alerts about changes to your credit score and identity theft insurance.
• Review Your Bank Accounts: Check your bank accounts for any unauthorized transactions.
• Report Lost or Stolen Documents: If any of your personal documents, such as your driver’s license or Social Security card, were lost or stolen, report them to the appropriate authorities.

Costs Associated with Identity Theft

While disputing identity theft on your credit report is technically free, there can be costs associated with it.

The biggest cost is arguably the time involved in clearing your name. It can be extremely frustrating and time-consuming.

My Experience & Quick Fix

For me, the most infuriating fraudulent account was a store credit card I had never applied for. I meticulously followed all the steps outlined above: FTC report, fraud alerts, credit freezes, and dispute letters. However, the store card remained on my credit report after the initial 30-day investigation.

What finally worked was sending another dispute letter to the credit bureau, this time including a signed affidavit stating, under penalty of perjury, that I did not authorize the account and that the signature on the application was not mine. I also included a copy of my passport as further proof of my identity. This, combined with the FTC report I’d already filed, seemed to finally convince them, and the fraudulent account was removed within two weeks. The key was the affidavit; it added a layer of seriousness and legal weight to my claim.

My Quick Fix:

1. File an FTC Identity Theft Report.
2. Dispute the inaccurate item with the credit bureau, including a signed affidavit under penalty of perjury.
3. Include all available supporting documentation (FTC report, ID, and anything else that proves you are you).

Staying Vigilant

Identity theft is a serious crime that can have lasting consequences. By taking the necessary steps to protect your personal information and monitor your credit reports regularly, you can minimize your risk of becoming a victim. And if you do become a victim, remember that you have rights and resources available to help you recover. Stay vigilant, stay informed, and don’t give up! I hope this guide helps you as you navigate this incredibly stressful situation.

Frequently Asked Questions

What is the first thing I should do if I suspect identity theft?

The very first step is to file a report with the Federal Trade Commission (FTC) at IdentityTheft.gov. This creates an official Identity Theft Report and FTC affidavit which are crucial for disputing fraudulent activity.

How often can I get a free credit report?

You are entitled to one free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every 12 months through AnnualCreditReport.com. Staggering your requests allows you to monitor your credit more frequently.

What is the difference between a fraud alert and a credit freeze?

A fraud alert requires creditors to verify your identity before extending credit, while a credit freeze restricts access to your credit report altogether, making it more difficult for identity thieves to open new accounts. You must temporarily lift a credit freeze when you legitimately apply for credit.

How long do credit bureaus have to investigate my dispute?

Credit bureaus typically have 30 days to investigate a dispute (45 days if you’ve recently placed a fraud alert). They will contact the creditor or source of the information to verify its accuracy.

What if the credit bureau doesn’t remove the inaccurate information after the investigation?

If the credit bureau doesn’t remove the information, or if you disagree with the investigation’s results, you have the right to request that a statement of dispute be added to your credit report. This statement will be included whenever your credit report is provided to lenders or other parties.