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 Dear
Debt Adviser,
A creditor is trying to collect $11,000 from an account
that I supposedly opened in 1972. Somebody used my Social Security number to acquire
this account. I called the creditor and explained my case to them. According
to the credit department, there was no record of me having an account during that
time.
I am working and the job I have requires for me to
have security clearance. This creditor could jeopardize my status with the company. What
would be the best course of action? I wrote them a letter stating that the
account is not mine.
-- Luis  Dear
Luis,
As you probably realize by now, since someone used your Social
Security number to open an account without your permission, you are a victim of
identity theft. First thing, if you haven't already done so, is to go to your
local police station and report the crime.
Be sure to get
a copy of the report and the report number. A police report is one of the essential
things you need to get this under control. Send a copy of the police report to
the creditor and the credit reporting bureaus. Technically, you should only need
to send it to one bureau, but to be safe, spring for the extra two stamps. Ask
that the trade line be taken off your credit report, if it is listed, and that
your file be frozen if your state law allows. Otherwise, I suggest that you at
least have them issue a fraud alert. A fraud alert does not keep others from using
your file, but it does flag it and require that caution be used when opening new
accounts under your Social Security number. If you believe
your job could be in jeopardy over this information, consider being proactive
with your employer. Let your supervisor or human resources person know that you
have been the victim of identity theft, have filed a police report and are working
to get things resolved. That way, should the creditor violate the Fair and Accurate
Credit Transaction Act and list the account on your credit report, your employer
will have been alerted to the possibility and know that it is a false item. From
what you state in your letter, it sounds as if the creditor knows that the account
was opened fraudulently. They are probably not nefarious, just lazy. This can
be a classic example of the big company right hand not knowing what the left hand
is doing. You have done your part by communicating both by phone and by letter
that you are disputing the fact that the account is yours. You are protected by
the FACT Act (see www.ftc.gov
for more information) from having the account turned over to a third-party collection
agency because you have informed the creditor that the account was opened because
of an identity theft.
My recommendation is to go up the
creditor's chain of command and see if you can
communicate with someone who can find someone
with the energy or good business sense to call
off the collections people. I hope you have been
keeping good records of all your contacts with
the company to date and copies of letters and
e-mails. If not, begin at once. Record keeping
is important if you have to prove what happened
later. Identity theft issues can drag on for years,
so those notes may prove invaluable.
Firmly,
but politely, request that action be taken to ensure that the collection calls
stop and that nothing is erroneously reported to the credit bureaus. Ask that
the action steps be outlined in writing and mailed to you. Inform the company
that you are aware of your rights under the FACT Act.
This is a time-consuming task and
requires patience, but don't give up! The creditor
should eventually be willing to straighten this
out for you. Other great sources for information
on this topic are the Identity
Theft Resource Center and "Undoing
identity thief's credit report damage,"
a previous Debt Adviser column.
Good
luck!
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