Identity Theft and Disputes Question

[itspnutbutterkellytime]

When my ex and I were together 4+ years ago, he opened some accounts in my name. Needless to say, I didn't realize until I started paying attention to my credit reports. I've paid and settled most of them off for the sake of my sanity and to not get sued. I've started reading some of the identity theft threads on here. If I dispute these accounts and submit a police report to the bureaus to go along with those disputes, will they then delete those accounts?

[kimbersleep]

I am sorry to hear that this happened.

Here is a link to a thread on exactly what to do if you are a victim of identity theft: http://ficoforums.myfico.com/t5/General-Credit-Topics/Victim-of-Identity-Theft-What-To-Do-to-Protect...

It includes references to the laws regarding what the bureaus, creditors, and any collection agencies have to do when you report identity theft.

[rmduhon]

I'm not sure how you paying/settling the accounts may impact the identity theft provision. It may possibly be too late for that. Hopefully it's not.

[RobertEG]

The identity theft and dispute processes are totally separate.

You can pursue one or the other, or both.

The dispute process involves your assertion of an inaccuracy based on your lack of authorization of the account or transactions reported under the account.

In handling a dispute, the creditor need only have reasonable basis for verifying that they have records showing you authorized the account or contested transactions.

They do not have to prove it was you.

Thus, a dispute based on "account not mine" often results in proper verification, and does not resolve your assertion that it was not authorized by you.

To address that dilemma, congress amended the FCRA to include section 605B, which permits block of information asserted by a consumer to have resulted from identity theft from their credit report provided the assertion is backed up by a sworn statement before a law enforement agency, which carries criminal penalties for knowingly false statments.  Submission of a police report along with the other items required under section 605B permits removal of the information from your credit report without any involvement of the creditor, and thus avoids any creditor verifcation of the reporting.

The CRA does not delete the account.  The identity theft process does not legally prove that the account was not yours, it simply is a provision that blocks it from continued appearance in your credit report.

To further assist the consumer in ultimate proof of whether the debt is theirss, you can also, once you have a police report, pursue proof of whether you actually authorized the account by sending a coppy of the police report to the asserted creditor, who must then provide you with all business records in their possession related to your asserted authorization of the account or transactions.

See FCRA 609(e).

That "mini discovery" provision can then be used in attempt to legally prove the matter, and thus eventually require actual deletion or defend any civil action.

[itspnutbutterkellytime]

Thank you!

So, what is the difference between a block and a removal from my credit reports? How will this affect my scores?

[RobertEG]

A block means it will be excluded from your credit report.

It is thus not available to others, and no longer included in scoring.

However, it remains in your credit file.

[itspnutbutterkellytime]

Thank you Robert for your help! I really appreciate it

[itspnutbutterkellytime]

Update: Transunion sent me a letter saying that they are denying my request to block the information. I submitted my police report along with the other required documentation and they still denied it. Can they do this?

[RobertEG]

If you have complied with all of the requirments set forth in section 605B (a) and they decline to block, then first request the CRA to informally reconsider, and if they fail to comply, file a formal complaint with the CFPB for lack of CRA compliance with the clear statement of a permissible reason for denial:

"FCRA 605B (c) Authority to Decline or Rescind

(1)       In general. A consumer reporting agency may decline to block, or may rescind any block, of information relating to a consumer under this section, if the consumer reporting agency reasonably determines that –

  (A)         the information was blocked in error or a block was requested by the consumer in error;

  (B)         the information was blocked, or a block was requested by the consumer, on the basis of a material misrepresentation of fact by the consumer relevant to the request to block; or

  (C)         the consumer obtained possession of goods, services, or money as a result of the blocked transaction or transactions.

(2)       Notification to consumer. If a block of information is declined or rescinded under this subsection, the affected consumer shall be notified promptly, in the same manner as consumers are notified of the reinsertion of information under section 611(a)(5)(B)."