Epic Contributor
Posts: 24,819
Registered: ‎03-19-2007
Re: Considering the consequences of credit fraud
[ Edited ]

From a credit reporting perspective, it would be dealt with using the fraud/identity theft provisions of the FCRA.

From the last post, it appears that the collection was reported to the CRA under the name of the minor as the consumer.

So dealing with that reporting requires that the parent of the minor initiate fraud/identity theft proceedings on behalf of the reported consumer.


Acting as the consumer's legal spokespersons, they can file a police report identifying the issues, and then send a copy of that police/identity theft report to the CRA, thus requiring its immediate blocking from the consumer's credit report.   Straight-forward, if they are willing to take that step.  FCRA 605B. 

The CRAs require a copy of a police report in order to block the information.  However, no telling what type of investigation the police might then initiate.  But that is the way to handle the credit reporting issue.


The police report could also be used to invoke the discovery rights of the consumer under FCRA 609(e).  By also sending a copy of the police/identity theft report to the original creditor, they can require the creditor to provide all business records relating to the account.  A major tool, provided the information they provide is not incriminating..........  a big if.


Finally, the police report can also be sent to the debt collector, similarly invoking the consumer's rights under FCRA 615(g)(2) that the debt collector provide all information to which the consumer would be entitled if he/she had chosen to dispute the debt they are attempting to collect.  Also, as regards the debt collector, invoking the credit report block under section 605B also prevents the debt collector, under section 615(f), from transfer or sale of the debt while the 605B block is in place.


There is a whole lot that a consumer can do under the FCRA if they are willing/able to do so.  If the party has "unclean hands" in initiating any of those procedures, that is their peril.