Identity Theft Credit Damage Lawsuit Investigation

Identity theft credit report damage or unknown accounts on credit reports: Who’s affected?

Has your credit report been damaged by fraud or identity theft within the last two years? Have you found accounts on your credit reports that are innaccurate or you don’t recognize?

A consumer’s credit report is of vital importance during major purchases, such as a home or car, as well as for obtaining insurance, employment or rental housing. A consumer report is your reputation. You have to protect it.

Identity theft is one of the most common crimes in America. Fraudsters can open accounts while pretending to be other consumers or apply for credit offers using another person’s personal information. The resulting inaccurate information on a credit report can affect the ability of a consumer to buy a home or get a job.

When fraudsters don’t pay the bills on the unauthorized accounts they open, this information is reported to credit reporting agencies like Experian, Equifax and TransUnion. The consumer whose information was used suffers credit injuries because of these late payments or accounts being sent to collections. In some instances, credit reporting agencies may refuse to remove inaccurate information from a consumer’s credit report, even if it is the result of fraud.

What free resources are available to address fraudulent credit damage?

You have substantial rights to require the removal of inaccurate credit reporting accounts that do not belong to you.

If you suffered credit damage as a result of a creditor or credit bureau’s refusal to remove inaccurate or fraudulent information, you may qualify for monetary damages.

Consumers who have been victims of identity theft may have suffered damage to their credit. A low credit score can affect a consumer’s eligibility to buy a home or make other purchases. A low credit score can cause an individual to receive higher interest rates on mortgages or other lending, costing them hundreds or even thousands of dollars.

Credit reporting agencies, such as Experian, TransUnion and Equifax, are obligated under the Fair Credit Reporting Act (FCRA) to investigate information a consumer disputes as inaccurate and, if the information can’t be verified, to delete it. Creditors that report accounts tied to identity theft also have responsibilities to investigate when a consumer disputes those accounts. However, this does not always happen. A consumer may find it challenging to have certain fraudulent information removed from their Experian, Equifax or TransUnion records.

If fraudulent credit report activity is not caught and stopped, a consumer can face serious financial injury. In addition to the identity theft they have already suffered, customers can take a serious hit to their credit score after an incident of identity theft.

What is a credit report?

Credit reports, which also contain credit scores, are used by companies to ensure a consumer is qualified to receive credit to make a purchase, such as a home or vehicle. Companies also use credit reports for employment purposes and during the rental application processes.

Three major credit reporting agencies, Equifax, Experian and TransUnion, collect information to create each consumer’s credit report. Credit reports are composed of information from creditors including banks and mortgage companies. Credit reporting agencies do not check the accuracy of information before it winds up on a credit report, so inaccuracies can be included in an individual’s credit report.

Though information is not verified, it has a large impact on a consumer’s financial life. Lenders and other businesses pull credit reports from these agencies to determine a consumer’s eligibility for credit, their suitability as an employer, their financial stability as a tenant, and more.

How can a credit report be harmed by identity theft?

A consumer’s credit report is of vital importance and the effect of identity theft can be devastating.

The rate of identity theft and fraud is on the rise, skyrocketing to more than 5 million reported cases in 2020 alone, according to the Federal Trade Commission. In 2022, which may be a record year for these complaints, the majority of complaints cite credit score concerns. Fraudsters obtain another consumer’s personal information and use it to open accounts. The fraudsters then do not pay the bills for the accounts they open, destroying that person’s credit.

How to identify and stop fraud affecting your credit score

Each of the three credit bureaus, Equifax, Experian, and TransUnion, provide one free credit report each year. In addition, consumers who are denied credit or who receive an adverse action letter based on something in their credit report are also entitled to a free copy of the credit report that was used to deny credit.

Experts recommend obtaining and reviewing these reports as often as possible for strange or fraudulent activity. It is especially important to check your credit before making major purchases, like a car or home. This enables you to avoid any surprises when a creditor obtains your credit report.

Stay on the lookout for the following signs that identity theft or fraud may be affecting your credit score:

Consumers who notice a fraudulent account or other inaccurate information on their credit reports should dispute it to the credit reporting agencies. Dispute letters should include complete information about the disputed record, why it is wrong and any supporting documentation. For instance, consumers affected by identity theft should fill out an  FTC Identity Theft Affidavit and submit it along with their disputes. Qualified attorneys can assist with the process.

Under the FCRA, each credit reporting agency is required to investigate information consumers dispute. In addition, consumers can freeze their credit reports to stop further damage.

Identity theft victims may run into issues proving the account or other discrepancy is fraudulent and should consider speaking to an attorney to help assist with the process. But remember, if the account is truly fraudulent, no creditor or debt collector can make you pay the balance.

Join an identity theft credit damage lawsuit investigation

Disputing a fraudulent account or other issue caused by identity theft to the credit reporting agencies may not be enough to stop problems caused by an inaccurate credit report.

Consumers who have unsuccessfully tried to report identity theft or fraud that took place within the last two years to credit reporting agencies, lenders, or other businesses may be able to take legal action.

If your credit report was damaged by fraud or identity theft within the last two years, you may qualify to participate in an identity theft credit damage lawsuit investigation.

Please fill out the form on this page to see if you qualify for a FREE case evaluation.