Identity Theft & Consumer Credit FAQs

Identity theft occurs when someone uses your personal information—such as your name, date of birth, Social Security number, or credit card details—without permission to commit fraud. It can lead to financial loss, damaged credit, and emotional distress.

Fraud is the act of using stolen information for financial gain, while a data breach is when private information is exposed or stolen. Identity theft is often the link between the two, where your stolen data is actively used to impersonate you.

Identity thieves often target Social Security numbers, credit card details, bank information, and login credentials. Even basic data like your address or date of birth can help criminals open new accounts in your name.

They use phishing emails, fake websites, data breaches, mail theft, text messages, or even social engineering to obtain personal details. In some cases, information is stolen from businesses or public databases.

Unexpected bills, collection calls for debts you don’t recognize, or unfamiliar accounts appearing on your credit report are key warning signs. A sudden drop in your credit score can also be an early indicator.

Start by contacting your banks and credit card companies to freeze or close compromised accounts. Then file a report with the FTC at IdentityTheft.gov and notify the major credit bureaus to place fraud alerts on your credit file.

Visit your local police department with identification, proof of address, and any evidence of the theft such as fraudulent statements. A police report strengthens your case when disputing fraudulent accounts.

Yes. You can contact any one of the three major credit bureaus—Equifax, Experian, or TransUnion—to place a free one-year fraud alert, which requires creditors to verify your identity before opening new accounts.

A credit freeze blocks access to your credit reports entirely, preventing new credit from being opened in your name. You can request a freeze for free directly from each credit bureau online or by phone.

No. Both fraud alerts and credit freezes are free under federal law. You can lift or remove them at any time as needed.

A standard fraud alert lasts one year, while an extended fraud alert for verified identity theft victims lasts seven years. Credit freezes remain in place until you remove them.

An identity theft affidavit is an official statement describing the theft and its impact, used to dispute fraudulent accounts. It’s often filed with the FTC and shared with creditors or credit bureaus.

Yes. You have the right to dispute fraudulent accounts with both the creditor and credit bureaus. Supporting documentation, like your police report and identity theft affidavit, helps ensure those accounts are deleted.

Submit a written dispute to each credit bureau with copies of your proof of identity and supporting evidence. Pursuant to the Fair Credit Reporting Act (FCRA), the credit reporting agencies must investigate and remove unverifiable or fraudulent information.

Typically, you’ll need government-issued ID, a police report or an FTC identity theft report, and any correspondence from the creditor or collector. This documentation strengthens your dispute.

No. You are not legally responsible for fraudulent debts resulting from identity theft. Creditors and collectors must remove those accounts from your record.

Fraudulent information should be removed once it’s verified as identity theft. However, if left unchallenged, it can remain for up to seven years, so timely action is crucial.

Use strong, unique passwords, enable two-factor authentication, and monitor your credit reports regularly. Consider using identity theft monitoring services for additional protection.

Victims may be entitled to financial recovery for damages caused by negligent credit reporting or failure to correct fraudulent data. A consumer protection attorney can help enforce these rights under federal law at no cost.

An attorney can dispute fraudulent accounts on your behalf, demand removal of false data, and pursue damages from negligent parties all at no cost to you. They’ll ensure your rights are protected throughout the recovery process.

A credit dispute is a formal request to correct inaccurate or incomplete information on your credit report. You should file one whenever you notice fraud or errors that could affect your creditworthiness.

Submit a dispute by mail directly with the credit bureau (Experian, Equifax, or TransUnion) that’s reporting the error. Include clear documentation such as billing statements, letters, or proof of payment.

You should contact both the credit bureau and the company that provided the incorrect information, known as the “furnisher.” Both are required to investigate under the Fair Credit Reporting Act.

They typically have 30 days to investigate and respond. If the information cannot be verified within that timeframe, it must be corrected or deleted.

If a creditor or data furnisher can’t verify the accuracy of a disputed entry, the credit bureau must remove it from your report. This ensures only accurate information remains.

The FCRA gives you the right to accurate credit reporting, to dispute and correct errors, and to be notified if negative information is used against you. It also allows you to sue for damages if your rights are violated.

Yes. If your dispute is denied but you still disagree, you can add a brief statement explaining your position. Lenders will see this note when reviewing your credit.

You can dispute any inaccurate, outdated, or incomplete item—such as wrong balances, duplicate accounts, unauthorized inquiries, accounts belonging to family members, or accounts opened through identity theft and/or fraud.

No. Most negative items must be removed after seven years, though bankruptcies may remain for up to ten years. Accurate negative information cannot be deleted early unless it’s incorrect.

Late payments, charge-offs, and collections generally remain for seven years. Hard inquiries last two years but have less impact over time.

A dispute is your legal right to challenge inaccuracies. Credit repair services often charge fees to do the same process, sometimes without providing legal oversight or protection.

Yes. Submitting frivolous or repetitive disputes can cause delays or weaken your credibility with the credit bureaus. Always provide accurate information and documentation.

If the bureau claims the information is accurate but you disagree, you can request re-investigation, contact the furnisher directly, or consult a consumer law attorney to escalate the issue at no cost.

Yes. Under the FCRA, you may be entitled to compensation if they fail to conduct a proper investigation or continue to report false information after notice.

Absolutely. If a creditor cannot verify an account’s accuracy, the credit bureau must delete or correct it within the investigation period.

You can obtain one free report from each bureau every year at AnnualCreditReport.com. Additional free reports may be available after a dispute or adverse credit decision.

A hard inquiry occurs when a lender checks your credit for a loan or credit card and can slightly lower your score. A soft inquiry happens for background or promotional checks and doesn’t affect your credit.

Yes. If you see inquiries you didn’t authorize, you can dispute them as potential fraud. Providing proof of identity theft or unauthorized use strengthens your claim.

You may recover statutory damages, actual financial losses, attorney’s fees, and sometimes punitive damages for willful violations. These remedies help ensure fair treatment under consumer protection laws.

At no cost, an attorney can assist you with disputes, negotiate with creditors, and pursue legal action when necessary. They ensure that your credit rights are protected and that errors are corrected efficiently.