Identity Theft

[Anonymous]

I'm trying to help a friend of my daughters.  Good kid, 21 years old, has a job and a car loan that he pays on time every time.  In May 2007 his mother opened 2 Citibank accounts using his personal information without his knowlege.  She always got the mail at the 'family home' and he's moved around a lot since he was 18 (4 addresses and counting).  He never knew any debt existed in his name.  Fast forward now and he's getting collection calls on his cellphone.  Since he's never had any experience with this - and only has a cell - when the calls come 'please hold for an important message' he'd just hang up.  Or if they got through, he'd tell them they had the wrong person and hang up.   Then he starts getting letters from a collection agency -  his credit report has his current address due to the car loan.  We find out that his mother has run up (with penalties & fees etc) $9,000 in his name.  He confronted her, she admitted it, an told him it's his problem - the cards are in his name.  He's devastated and overwhelmed.  He asks for my help.

I had him pull his credit reports.  Yep, there are two Citibank accounts there totally $9k.  I went to the FTC website on identity theft.  He called 1 CRA and put a Fraud Alert on his credit file.  I  sent letters for him (in his name) to the 3 CRA's an Citibank advising them he's a victim of identity theft.  He called the police and filed a police report on the identity theft - we have the Officer's name and the report number.  I sent letters to the 3 CRAs and Citibank with the police report information.  He did tell me when the cop was there that the cop called the collection agencies and got no more info than they already had.  I don't know if he told the cop or CRA or Citibank that his mother is the one that stole his identity (I can understand him not wanting to throw her under the bus).

I *think* that once you send these letters that then can not continue to report this negative information on his credit report until this is resolved.

So - what now?  We just wait to see?  Somehow I don't think the CA's will easily let go of this young man.  There will not be a single document that has his signature on it.   What do we need to do to get this young man out from under this?  Any advice?

[llecs]

I take it the reason the report was sent to the CRAs was to dispute, right? How long ago was that and what was the outcome? Was a dispute against the CAs filed as well (assuming they are reporting)?

Tell him not to answer the phone. Also, if Citibank is reporting a balance, then they still own the debt.

[Anonymous]

Well, not sure 'dispute' is right word.  According to the FTC, the information should be blocked on his credit report because he was a victim of identity theft.  The letter samle included a copy of "FCRA 605B (15 U.S.C. § 1681c-2) Block of Information Resulting from Identity Theft".   I also sent the same to Citibank, with the letter explaining he was a victim of identity theft.  I followed up with letters to all 3 CA's and Citibank with the police report number and information.   This was all less than 2 weeks ago.  I told him sit tight til we see what response we get from everyone.  Citibank sold the accounts to 2 separate CA. 

I've told him to be sure not to answer the phone if the CA's call.  I'm just not sure how to proceed with them.  I want to send them a cease & desist letter, but then doesn't that mess up his chances of proving it wasn't him?  If I tell them to C&D, how can he demand to see all paperwork related to the account (ie not a one has his signature on it)?  Can't they go to court and say he never disputed it and they never had a chance to prove it was his account because they ordered him to C&D?  And - if I do a C&D, won't that prompt them to file suit now?

[llecs]

A C&D letter to the CA won't help here at all. Yes, they may stop calling and writing, but they may still assume that the debt is valid. I'd wait but tell him to order his reports or subscribe to a CMS if he can. Can't remember how FAs impact CR pulls, though.

Are the Citi accounts reporting a balance? Are the CAs reporting? It could be that Citi still owns the debt. If this is the case, then there's no need to deal with the CAs at all.

[Anonymous]

Oh the CA's assume the debt is valid - I'm sure they will til their dying breath (figuratively). 

He pulled one report, that's how we knew everything.  When he called the one CRA, they said they'd send him a copy of his report for filing. 

The Citi's are showing (from memory, reports at home) a $0 balance with a charge off/sold to collections.  Pretty sure the CA are showing on his report. 

I have to remember to bring the paperwork to the office

[llecs]

If at $0, you'll have to deal with the CAs as they very likely own the debt. Citi should disappear soon.

I'd send the CAs a DV letter and be clear that he was a victim of ID theft. I'd also insert a mention that a police report can be made available if requested is out there and that Citibank had already received that report, but I would hold short of sending it. Send CMRRR of course.

Message Edited by llecs on 06-29-2009 10:18 AM

[Anonymous]

Why would the Citi disappear soon?  Because of the report of Identity Theft? Because normally a charge off would take 7 years or more to disappear. 

So, I found a template for a DV letter - demands all the information and also issues a C&D demand. 

Then what?  Wait for them to sue him?  Somehow I don't think they are just going to let go of this.

[llecs]

Because Citi doesn't own the debt. They'll investigate the info you sent and I'm certain they will delete after reviewing what you had sent. Yes, under CRTP, the time frame is 7 yrs from DOFD.

Send the DV. IMO, avoid the C&D jargon. Wait until they respond. Give them 30-60 days and see what they say. They might acknowledge the FA and delete. They may try to verify with Citi and the FA info would be revealed. Second step if they put up a wall is to actually send the report.

If they try to sue, then that isn't a bad thing. He would show up to court with the police report and the judge would dismiss and the CA will fall off the report. But, IMO, it is way to early for that.

[Anonymous]

If his mom is willing to throw him under the bus the kid needs to do the same..... she needs to be in jail for this crap. Or at least taken to civil court where she is forced to pay for all of this.

[Anonymous]

I am not fond of the idea of both her getting away with what she did to her son, and with her getting $9k worth of services/goods for free.  However, it's not my call - and I can understand how difficult it would be for a 21yo to do that to his own mother.