Identity Theft and Reporting

[Anonymous]

I worked very hard for a year and was successful in removing all the collections from my reports. In November, a new collection hit, and because I was in the middle of a mortgage, I was instructed to settle it. I did so; however, when I called and settled it, I informed them that I did not acknowledge the debt as mine. I have since realized that it is, in fact, NOT mine. I am going to do a police report today and am wondering if that is enough to force them to remove the collection from my report. Before anyone asks, they do not to goodwill, do not do PFD, and will not work with me. I had 13 collections removed from my credit using letters, phone calls, and just pure persistance, so I know how to get them removed using the normal channels. Since this was the only one that was not actually mine, I need to know if they are forced to remove it since it was an identity theft even though I paid it and it is reporting PIF.

[RobertEG]

The identity theft process set forth in FCRA 605B requires a CRA to block any account or information that is asserted to have resulted from identity theft if you provide the required items to the CRA.

More specifically, FCRA 605B(a) mandates that the CRA shall block if the consumer provides the required items, which include proof of your identity, a copy of a police report, and a statement that the information is not related to any transaction made or authorized by you.

However, there is an exception to requiring blocking if the CRA determines one or more of the conditions set forth under subsection 605B(c) exists.

More relevant to your question is thus subsection 605B(c), which sets forth the permissible exceptions upon which a CRA can decline to block:

"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."

Of note is that having made any payment on the account is not a relevant factor upon which the CRA can decline to block.

[Anonymous]

Perfect reply! Exactly what I needed. Time to go to work on those items and get my ducks in a row. Thank you!!!

[Anonymous]

Just for clarification, I send my police report, ID, and statement to Equifax, Transunion, and Experian and I don't need to send anything to the collection agency that added the collection?

[RobertEG]

You are not required to send anything to the furnisher (in your case, the debt collector) in order to effect the block by the CRA.

The furnisher is not involved in the block procedure.

As for the furnisher, two points are relevant.

The first is how the furnisher is advised if a block of their reporting is granted by the CRA, and the second is what you, as the consumer, can additionally do with regard to any further reporting by the furnisher.

As to point 1, FCRA 605B(b) specifically requires the CRA (and not the consumer) to send notice to the furnisher if a block is granted.

You thus dont have to inform the furnisher; that is the duty of the CRA.

As to point 2, FCRA 623(a)(6) provides the ability of the consumer to additionally send a copy of the police report to the furnisher, which then imposes a bar on the furnisher from thereafter reporting that information to any CRA unless the furnisher first receives a notice from the consumer that the consumer has subsequently found the information is now considered to be correct.

Thus, while it is not necessary to send anything to the debt collector, if you do send them a copy of the police report, it would be prudent, as it will impose a bar on any subsequent reporting of the identity theft information unless you notify the debt collector that you agree that the reporting is correct.