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Fraudulent Synchrony Account - What to do?!

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Anonymous
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Fraudulent Synchrony Account - What to do?!

Hi, Everyone,

 

A few weeks ago I called Synchrony Bank to inquire about a $521 charged-off Banana Republic credit card on my credit reports that has now been placed with Midland Funding, LLC for collection. I have never had a Banana Republic credit card and the gentleman that I spoke with transferred me to the fraud department because the information that they had on file for me was incorrect. (Obviously, because it's not my card.)

 

I have been monitoring my credit reports using My Privacy Matters and saw today that the card started reporting again as a charge-off this month. It hadn't reported for several months. I haven't received any correspondence from Synchrony Bank following up with me about the fraud cause and I'm very concerned about this. The card is reporting as "lost or stolen," but it's not lost or stolen, it was never mine to begin with!

 

What should my next steps be? Any help will be greatly appreciated!

Message 1 of 8
7 REPLIES 7
RobertEG
Legendary Contributor

Re: Fraudulent Synchrony Account - What to do?!

The FCRA provides an identity theft process that permits consumers to get information blocked from their credit reports without any involvement by or approval of the creditor or debt collector.  See the sticky post at the top portion of the General Credit Topics forum for detailed discussion.

 

In a nutshell, you file a police report attesting that you never authoriized the account, and send it to the CRA along with proof of your identity and a standard FTC fraud affidavit.  The CRA must then block the information from further inclusion in any credit report they issue.

Message 2 of 8
Anonymous
Not applicable

Re: Fraudulent Synchrony Account - What to do?!

Thank you, Robert!

So, once I do this it will all be removed and collection activity will stop?
Message 3 of 8
RobertEG
Legendary Contributor

Re: Fraudulent Synchrony Account - What to do?!

It will be blocked from continuing to post in your credit report.

However, it does not resolve the issue if the debt collector continues to assert that the debt is valid.

 

You first file a dispute with the CRA of the accuracy of the reported collection.

The debt collector will then be forwarded a copy of the dispute, and must conduct a reasonable investigation and report their finding back to the CRA.

In many cases, the debt collector or creditor will, based on the records of someone having used your name, verify the accuracy, and thus conclude the dispute without any factual determination that the collection or account is not yours.

 

That is the purpose for the identity theft process being added to the CRA.  Disputes will often be verified, and thus the account or collection will not be deleted as a result of the dispute.  Your statement in a police report is not factual evidence, but only an assertion.  However, it is considered as adequate to at least block from your credit report.  The identity theft process provides for removal from your credit report without any involvement of the reporting party, but does not resolve the issue of whether or not the debt was factually obligated by you.

 

The debt collector can continue to atttempt to collect if they verify the accuracy based on documents in their possession, even if they are later found to actually be based on someone else having used your identity.

If credit report exclusion alone does not serve your purpose, you could pursue proof of no debt in fact by bringing civil action and getting the matter before a judge, who has the authority to review the facts and make a binding legal determination.

Message 4 of 8
Anonymous
Not applicable

Re: Fraudulent Synchrony Account - What to do?!

Thank you! They've actually not contacted me whatsoever regarding this debt (probably because they have no accurate contact information for me) so having it removed is all that I want. It will be completely deleted, right?
Message 5 of 8
Anonymous
Not applicable

Re: Fraudulent Synchrony Account - What to do?!


@Anonymous wrote:
Thank you! They've actually not contacted me whatsoever regarding this debt (probably because they have no accurate contact information for me) so having it removed is all that I want. It will be completely deleted, right?

If they arenot reporting it as disputed you have a very easy way to get their attention and to get the TL deleted - sue them for the FDCPA viuolation of misrepresenting the legal character of the debt (in this case that it is yours in the first place) and the FCRA violation of knowingly failing to accurately report the status of teh debt (in this case that it is disputed). When you settle the $2,000 suit you bring against them, have permanent deletion from all CRA's as a condition.

Message 6 of 8
RobertEG
Legendary Contributor

Re: Fraudulent Synchrony Account - What to do?!

Any civl action at this time would be premature.

A consumer has no right to bring their own civil action for any liability for accuracy or inaccuracy of reporting to a CRA.

That is reserved under FCRA 623(c) only to governmental agencies.

 

A consumer must first file a formal dispute with the CRA asserting inaccuracy of reporting, thus providing the furnisher with the opportunity to investigate and either verify, correct or delete.  The posted scenario refers only to an informal call, not to formal dispute and the receipt of a formal Notice of Results of Reinvestigation from the CRA.

 

Any civil action applies only to the reasonableness of their investigation of your dispute, not to thieir having made knowingly inaccurate reporting to a CRA.

If the creditor or debt collector has any documentation that would reasonably show that your name was used to obtain the credit, then they can reasonably verify the accuracy of their reporting in response to a dispute without a violation of the FCRA.

 

That is the very reason why congress enacted the identity theft revision to the FCRA.  Disputes usually dont resolve the matter of the creditor having approved credit based on documents asserting to have been from the named consumer.

The identity theft process permits block of the information without any verification or involvement of the furnisher if the consumer reinforces their allegation by a sworn statement before a law enforcemant agency.

Message 7 of 8
Anonymous
Not applicable

Re: Fraudulent Synchrony Account - What to do?!

Thank you both. I did dispute it with all three credit reporting agencies, but it came back as verified. This isn't surprising since they basically only need to show that someone applied for credit using my information (even if that person wasn't me) to verify the dispute.

 

I will follow the identity theft process and report back.

 

Thanks again.

Message 8 of 8
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