Ask Dr. Don By Don Taylor, Ph.D., CFA • Bankrate.com

Identity theft

Dear Dr. Don,
A few months ago I started to receive harassing phone calls from creditors claiming I owed a certain department store almost $4,500. The account has been delinquent for over two years and only had one payment made on it.

I am still pretty young and have never applied for or been granted a line of credit. I don't even shop at the store the card was granted at. I have been fighting for months now with creditors and have no idea of how to prove this card was not mine. I am just starting the adult period of my life and my credit is already destroyed. How do I take care of this?
Larin Larcin

Dear Larin,
If you didn't apply for credit then someone has used your name to obtain credit. That means you are a victim of identity theft. You can regain you name and your credit history, but it will take some work.

Start out by putting a fraud alert on all three of your credit reports. The alert asks creditors to check with you before approving any new credit applications.

File an ID Theft Affidavit and Fraudulent Account Statement with your creditors and your local police department. Getting a police report number may help in dealing with the creditors.

Contact creditors for the accounts that have been tampered with or opened without your knowledge. Don't call the creditors. Write complaint letters and keep copies of these letters on file. Keep copies of everything and a log of any phone conversations.

This Bankrate feature has more on managing your identity-theft case.

Since you suspect that your credit reports contain fraudulent information, you can also request free copies of your credit reports from Equifax, Experian and TransUnion. You're entitled to one free report every 12 months if you certify that your report is inaccurate due to fraud. Bankrate can provide you with the contact information.

If your account was turned over to a collection agency, then you have rights under the Fair Debt Collections Practices Act to limit how the debt collector can contact you.

Writing a letter to the collector telling them to stop contacting you will force them to stop. After the collector has received your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Sending the letter does not make the debt go away if you actually owe it. Remedies of law remain in place for the debt collector or your original creditor.

You can get your good name back; it's just going to take some time and effort on your part. Good luck.

-- Posted: Jan. 8, 2003