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Identity Theft:
When Bad Things Happen To your Good Name
February 2001
published by US Federal Trade Commission
Listen to these consumers . . .
Someone used my Social Security number to get credit in my
name. This has caused a lot of problems. I have been turned down for jobs, credit, and
refinancing offers. This is stressful and embarrassing. I want to open my own business,
but it may be impossible with this unresolved problem hanging over my head.
From a consumer complaint to
the FTC, May 18, 1999
Someone is using my name and Social Security number to open
credit card accounts. All the accounts are in collections. I had no idea this was
happening until I applied for a mortgage. Because these "bad" accounts showed up
on my credit report, I didn't get the mortgage.
From a consumer complaint to
the FTC, July 13, 1999
Help! Someone is using my Social Security number to get a
job.
From a consumer complaint to
the FTC, September 20, 1999
My elderly parents are victims of credit fraud. We don't
know what to do. Someone applied for credit cards in their name and charged nearly
$20,000. Two of the card companies have cleared my parents's name, but the third has
turned the account over to a collection agency. The agency doesn't believe Mom and Dad
didn't authorize the account. What can we do to stop the debt collector?
From a consumer complaint to
the FTC, October 7, 1999
TABLE OF CONTENTS
Introduction
How Identity Theft Occurs
Minimize Your Risk
- Choosing to Share Personal
Information - or Not
- Credit Bureaus
- Departments of Motor Vehicles
- Direct Marketers
- If You're a Victim
- Your First Three Steps
- Your Next Steps
- Where There's Help
- Federal Clearinghouse for Consumer Complaints
- Federal Laws
- State Laws
- Resolving Credit Problems
- Credit Reports
- Credit Cards
- Debt Collectors
- ATM Cards, Debit Cards and Electronic Fund Transfers
- Resources
- Federal Government
- State and Local Governments
- Credit Bureaus
-
INTRODUCTION
In the course of a busy day, you may write
a check at the grocery store, charge tickets to a ball game, rent a car, mail your tax
returns, call home on your cell phone, order new checks or apply for a credit card.
Chances are you don't give these everyday transactions a second thought. But someone else
may.
The 1990's spawned a new variety of crooks called identity
thieves. Their stock in trade are your everyday transactions. Each transaction requires
you to share personal information: your bank and credit card account numbers; your income;
your Social Security number (SSN); and your name, address and phone numbers. An identity
thief co-opts some piece of your personal information and appropriates it without your
knowledge to commit fraud or theft. An all-too-common example is when an identity thief
uses your personal information to open a credit card account in your name.
Can you completely prevent identity theft from occurring?
Probably not, especially if someone is determined to commit the crime. But you can
minimize your risk by managing your personal information wisely, cautiously and with
heightened sensitivity.
The Congress of the United States asked the Federal Trade
Commission to provide information to consumers about identity theft and to take complaints
from those whose identities have been stolen. If you've been a victim of identity theft,
you can call the FTC's Identity Theft Hotline toll-free at 1-877-IDTHEFT (438-4338). The
FTC puts your information into a secure consumer fraud database and may, in appropriate
instances, share it with other law enforcement agencies and private entities, including
any companies about which you may complain.
The FTC, working in conjunction with other government
agencies, has produced this booklet to help you guard against and recover from identity
theft.
HOW IDENTITY THEFT
OCCURS
Despite your best efforts to manage the
flow of your personal information or to keep it to yourself, skilled identity thieves may
use a variety of methods - low- and hi-tech - to gain access to your data. Here are some
of the ways imposters can get your personal information and take over your identity.
| How
identity thieves get your personal information: They steal wallets and purses containing your identification and
credit and bank cards.
They steal your mail, including your bank
and credit card statements, pre-approved credit offers, telephone calling cards and tax
information.
They complete a "change of address
form" to divert your mail to another location.
They rummage through your trash, or the
trash of businesses, for personal data in a practice known as "dumpster diving."
They fraudulently obtain your credit report
by posing as a landlord, employer or someone else who may have a legitimate need for
— and a legal right to — the information.
They get your business or personnel records
at work.
They find personal information in your
home.
They use personal information you share on
the Internet.
They buy your personal information from
"inside" sources. For example, an identity thief may pay a store employee for
information about you that appears on an application for goods, services or credit. |
How
identity thieves use your personal information: They call your credit card issuer and, pretending to be you, ask
to change the mailing address on your credit card account. The imposter then runs up
charges on your account. Because your bills are being sent to the new address, it may take
some time before you realize there's a problem.
They open a new credit card account, using
your name, date of birth and SSN. When they use the credit card and don't pay the bills,
the delinquent account is reported on your credit report.
They establish phone or wireless service in
your name.
They open a bank account in your name and
write bad checks on that account.
They file for bankruptcy under your name to
avoid paying debts they've incurred under your name, or to avoid eviction.
They counterfeit checks or debit cards, and
drain your bank account.
They buy cars by taking out auto loans in
your name. |
MINIMIZE YOUR RISK
While you probably can't prevent identity
theft entirely, you can minimize your risk. By managing your personal information wisely,
cautiously and with an awareness of the issue, you can help guard against identity theft:
 | Before you reveal any personally identifying
information, find out how it will be used and whether it will be shared with others. Ask
if you have a choice about the use of your information: can you choose to have it kept
confidential?
|
| Pay attention to your billing cycles. Follow
up with creditors if your bills don't arrive on time. A missing credit card bill could
mean an identity thief has taken over your credit card account and changed your billing
address to cover his tracks.
|
| Guard your mail from theft. Deposit outgoing
mail in post office collection boxes or at your local post office. Promptly remove mail
from your mailbox after it has been delivered. If you're planning to be away from home and
can't pick up your mail, call the U.S. Postal Service at 1-800-275-8777 to request a
vacation hold. The Postal Service will hold your mail at your local post office until you
can pick it up.
|
| Put passwords on your credit card, bank and
phone accounts. Avoid using easily available information like your mother's maiden name,
your birth date, the last four digits of your SSN or your phone number, or a series of
consecutive numbers.
|
| Minimize the identification information and
the number of cards you carry to what you'll actually need.
|
| Do not give out personal information on the
phone, through the mail or over the Internet unless you have initiated the contact or know
who you're dealing with. Identity thieves may pose as representatives of banks, Internet
service providers and even government agencies to get you to reveal your SSN, mother's
maiden name, financial account numbers and other identifying information. Legitimate
organizations with whom you do business have the information they need and will not ask
you for it.
|
| Keep items with personal information in a
safe place. To thwart an identity thief who may pick through your trash or recycling bins
to capture your personal information, tear or shred your charge receipts, copies of credit
applications, insurance forms, physician statements, bank checks and statements that you
are discarding, expired charge cards and credit offers you get in the mail.
|
| Be cautious about where you leave personal
information in your home, especially if you have roommates, employ outside help or are
having service work done in your home.
|
| Find out who has access to your personal
information at work and verify that the records are kept in a secure location.
|
| Give your SSN only when absolutely
necessary. Ask to use other types of identifiers when possible.
|
| Don't carry your SSN card; leave it in a
secure place.
|
| Order a copy of your credit report from each
of the three major credit reporting agencies every year. Make sure it is accurate and
includes only those activities you've authorized. The law allows credit bureaus to charge
you up to $8.50 for a copy of your credit report.
|
Your credit report contains information on where you work
and live, the credit accounts that have been opened in your name, how you pay your bills
and whether you've been sued, arrested or filed for bankruptcy. Checking your report on a
regular basis can help you catch mistakes and fraud before they wreak havoc on your
personal finances. See "Credit Reports" for details about
removing fraudulent and inaccurate information from your credit report.
A SPECIAL WORD
ABOUT SOCIAL SECURITY NUMBERS
Your employer and financial institution will likely need
your SSN for wage and tax reporting purposes. Other private businesses may ask you for
your SSN to do a credit check, such as when you apply for a car loan. Sometimes, however,
they simply want your SSN for general record keeping. You don't have to give a business
your SSN just because they ask for it. If someone asks for your SSN, ask the following
questions:
| Why do you need my SSN?
|
| How will my SSN be used?
|
| What law requires me to give you my SSN?
|
| What will happen if I don't give you my SSN?
|
Sometimes a business may not provide you with the service
or benefit you're seeking if you don't provide your SSN. Getting answers to these
questions will help you decide whether you want to share your SSN with the business.
Remember, though, that the decision is yours. |
CREDIT BUREAUS
Equifax — www.equifax.com
To order your report, call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
To report fraud, call: 800-525-6285 and write:
P.O. Box 740241, Atlanta, GA 30374-0241
Experian — www.experian.com
To order your report, call: 888-EXPERIAN (397-3742) or write:
P.O. Box 949, Allen TX 75013-0949
To report fraud, call: 888-EXPERIAN (397-3742) and write:
P.O. Box 949, Allen TX 75013- 0949
Trans Union — www.tuc.com
To order your report, call: 800-916-8800 or write:
P.O. Box 1000, Chester, PA 19022
To report fraud, call: 800-680-7289 and write:
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634
CHOOSING TO SHARE
YOUR PERSONAL INFORMATION — OR NOT
What happens to the personal information
you provide to companies, marketers and government agencies? They may use your information
just to process your order. They may use it to create a profile about you and then let you
know about products, services or promotions. Or they may share your information with
others. More organizations are offering consumers choices about how their personal
information is used. For example, many let you "opt out" of having your
information shared with others or used for promotional purposes.
You can learn more about the choices you have to protect
your personal information from credit bureaus, state Departments of Motor Vehicles and
direct marketers.
Credit Bureaus
Pre-Screened Credit Offers
If you receive pre-screened credit card offers in the mail (namely, those based upon your
credit data), but don't tear them up after you decide you don't want to accept the offer,
identity thieves may retrieve the offers for their own use without your knowledge.
To opt out of receiving pre-screened credit card offers,
call: 1-888-5-OPTOUT (1-888-567- 8688). The three major credit bureaus use the same
toll-free number to let consumers choose not to receive pre-screened credit offers.
Marketing Lists
Of the three major credit bureaus, only Experian offers consumers the opportunity
to have their names removed from lists that are used for marketing and promotional
purposes. To have your name removed from Experian's marketing lists, call 1-800-407-1088.
Departments of Motor Vehicles
Take a look at your driver's license. All the personal
information on it - and more - is on file with your state Department of Motor Vehicles
(DMV). A state DMV may distribute your personal information for law enforcement, driver
safety or insurance underwriting purposes, but you may have the right to choose not to
have the DMV distribute your personal information for other purposes, including for direct
marketing.
Not every DMV distributes personal information for direct
marketing or other purposes. You may be able to opt out if your state DMV distributes
personal information for these purposes. Contact your state DMV for more information.
Direct Marketers
The Direct Marketing Association's (DMA) Mail, E-mail and
Telephone Preference Services allow consumers to opt out of direct mail marketing, e-mail
marketing and/or telemarketing solicitations from many national companies. Because your
name will not be on their lists, it also means that these companies can't rent or sell
your name to other companies.
To remove your name from many national direct mail lists,
write:
DMA Mail Preference Service
P.O. Box 9008
Farmingdale, NY 11735-9008
To remove your e-mail address from many national direct
e-mail lists, visit www.e-mps.org.
To avoid unwanted phone calls from many national marketers,
send your name, address, and telephone number to:
DMA Telephone Preference Service
P.O. Box 9014
Farmingdale, NY 11735-9014
For more information, visit www.the-dma.org.
IF YOU'RE A VICTIM
Sometimes an identity thief can strike
even if you've been very careful about keeping your personal information to yourself. If
you suspect that your personal information has been hijacked and misappropriated to commit
fraud or theft, take action immediately, and keep a record of your conversations and
correspondence. Exactly which steps you should take to protect yourself depends on
your circumstances and how your identity has been misused. However, three basic actions
are appropriatein almost every case.
Your First Three Steps
First, contact the fraud departments of each of the
three major credit bureaus.
Tell them that you're an identity theft victim. Request
that a "fraud alert" be placed in your file, as well as a victim's statement
asking that creditors call you before opening any new accounts or changing your existing
accounts. This can help prevent an identity thief from opening additional accounts in your
name.
At the same time, order copies of your credit reports from
the credit bureaus. Credit bureaus must give you a free copy of your report if your report
is inaccurate because of fraud, and you request it in writing. Review your reports
carefully to make sure no additional fraudulent accounts have been opened in your name or
unauthorized changes made to your existing accounts. Also, check the section of your
report that lists "inquiries." Where "inquiries" appear from the
company(ies) that opened the fraudulent account(s), request that these
"inquiries" be removed from your report. (See "Credit
Reports" for more information.) In a few months, order new copies of your reports
to verify your corrections and changes, and to make sure no new fraudulent activity has
occurred.
Second, contact the creditors for any accounts that
have been tampered with or opened fraudulently.
Creditors can include credit card companies, phone
companies and other utilities, and banks and other lenders. Ask to speak with someone in
the security or fraud department of each creditor, and follow up with a letter. It's
particularly important to notify credit card companies in writing because that's the
consumer protection procedure the law spells out for resolving errors on credit card
billing statements. Immediately close accounts that have been tampered with and open new
ones with new Personal Identification Numbers (PINs) and passwords. Here again, avoid
using easily available information like your mother's maiden name, your birth date, the
last four digits of your SSN or your phone number, or a series of consecutive numbers.
Third, file a report with your local police or the
police in the community where the identity theft took place.
Get a copy of the police report in case the bank, credit
card company or others need proof of the crime. Even if the police can't catch the
identity thief in your case, having a copy of the police report can help you when dealing
with creditors.
Your Next Steps
Although there's no question that identity thieves can
wreak havoc on your personal finances, thereare some things you can do to take control of
the situation. For example:
| Stolen mail. If an identity
thief has stolen your mail to get new credit cards, bank and credit card statements,
pre-screened credit offers or tax information, or if an identity thief has falsified
change-of-address forms, that's a crime. Report it to your local postal inspector. Contact
your local post office for the phone number for the nearest postal inspection service
office or check the Postal Service web site at www.usps.gov/websites/depart/inspect.
|
| Change of address on credit card
accounts. If you discover that an identity thief has changed the billing address
on an existing credit card account, close the account. When you open a new account, ask
that a password be used before any inquiries or changes can be made on the account. Avoid
using easily available information like your mother's maiden name, your birth date, the
last four digits of your SSN or your phone number, or a series of consecutive numbers.
Avoid using the same information and numbers when you create a PIN.
|
| Bank accounts. If you have
reason to believe that an identity thief has tampered with your bank accounts, checks or
ATM card, close the accounts immediately. When you open new accounts, insist on
password-only access to minimize the chance that an identity thief can violate the
accounts.
|
In addition, if your checks have been stolen
or misused, stop payment. Also contact the major check verification companies to request
that they notify retailers using their databases not to accept these checks, or ask your
bank to notify the check verification service with which it does business.
National Check Fraud Service: 1-843-571-2143
SCAN: 1-800-262-7771
TeleCheck: 1-800-710-9898 or 927-0188
CrossCheck: 1-707-586-0551
Equifax Check Systems: 1-800-437-5120
International Check Services: 1-800-526-5380
If your ATM card has been lost, stolen or otherwise
compromised, cancel the card as soon as you can and get another with a new PIN.
| Investments. If you believe
that an identity thief has tampered with your securities investments or a brokerage
account, immediately report it to your broker or account manager and to the Securities and
Exchange Commission.
|
| Phone service. If an
identity thief has established new phone service in your name; is making unauthorized
calls that seem to come from - and are billed to - your cellular phone; or is using your
calling card and PIN, contact your service provider immediately to cancel the account
and/or calling card. Open new accounts and choose new PINs.
|
If you are having trouble getting fraudulent phone charges
removed from your account, contact your state Public Utility Commission for local service
providers or the Federal Communications Commission for long-distance service providers and
cellular providers at www.fcc.gov/ccb/enforce/complaints.html
or 1-888-CALL-FCC.
| Employment. If you believe
someone is using your SSN to apply for a job or to work, that's a crime. Report it to the
SSA's Fraud Hotline at 1-800-269-0271. Also call SSA at 1-800-772-1213 to verify the
accuracy of the earnings reported on your SSN, and to request a copy of your Social
Security Statement. Follow up your calls in writing.
|
| Driver's license. If you
suspect that your name or SSN is being used by an identity thief to get a driver's license
or a non-driver's ID card, contact your Department of Motor Vehicles. If your state uses
your SSN as your driver's license number, ask to substitute another number.
|
| Bankruptcy. If you believe
someone has filed for bankruptcy using your name, write to the U.S. Trustee in the Region
where the bankruptcy was filed. A listing of the U.S. Trustee Program's Regions can be
found at www.usdoj.gov/ust, or look in the Blue
Pages of your phone book under U.S. Government - Bankruptcy Administration.
|
Your letter should describe the situation and provide proof
of your identity. The U.S. Trustee, if appropriate, will make a referral to criminal law
enforcement authorities if you provide appropriate documentation to substantiate your
claim. You also may want to file a complaint with the U.S. Attorney and/or the FBI in the
city where the bankruptcy was filed.
| Criminal records/arrests.
In rare instances, an identity thief may create a criminal record under your name. For
example, your imposter may give your name when being arrested. If this happens to you, you
may need to hire an attorney to help resolve the problem. The procedures for clearing your
name vary by jurisdiction.
|
SHOULD I APPLY
FOR A NEW SOCIAL SECURITY NUMBER?
Under certain circumstances, SSA may issue you a new SSN
- at your request - if, after trying to resolve the problems brought on by identity
theft, you continue to experience problems. Consider this option carefully. A new SSN may
not resolve your identity theft problems, and may actually create new problems. For
example, a new SSN does not necessarily ensure a new credit record because credit bureaus
may combine the credit records from your old SSN with those from your new SSN. Even when
the old credit information is not associated with your new SSN, the absence of any credit
history under your new SSN may make it more difficult for you to get credit. And finally,
there's no guarantee that a new SSN wouldn't also be misused by an identity thief. |
WHERE THERE'S
HELP...
The FTC collects complaints about identity
theft from consumers who have been victimized. Although the FTC does not have the
authority to bring criminal cases, the Commission can help victims of identity theft by
providing information to assist them in resolving the financial and other problems that
can result from this crime. The FTC also refers victim complaints to other appropriate
government agencies and private organizations for further action.
If you've been a victim of identity theft, file a complaint with
the FTC by contacting the FTC's Identity Theft Hotline by telephone: toll-free
1-877-IDTHEFT (438-4338); TDD: 202-326-2502; by mail: Identity Theft Clearinghouse,
Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580; or online: www.consumer.gov/idtheft.
Other agencies and organizations also are working to combat
identity theft. If specific institutions and companies are not being responsive to your
questions and complaints, you also may want to contact the government agencies with
jurisdiction over those companies. They are listed in the Resources
section of this booklet.
| Federal Laws The Federal government and numerous states have passed laws that
address the problem of identity theft.
The Identity Theft and Assumption Deterrence Act, enacted
by Congress in October 1998 (and codified, in part, at 18 U.S.C. § 1028) is the federal
law directed at identity theft.
Violations of the Act are investigated by federal law
enforcement agencies, including the U.S. Secret Service, the FBI, the U.S. Postal
Inspection Service and SSA's Office of the Inspector General. Federal identity theft cases
are prosecuted by the U.S. Department of Justice. |
Identity Theft
and Assumption Deterrence Act of 1998
The Identity Theft and Assumption Deterrence Act makes it a
federal crime when someone:
"knowingly transfers or uses, without lawful
authority, a means of identification of another person with the intent to commit, or to
aid or abet, any unlawful activity that constitutes a violation of federal law, or that
constitutes a felony under any applicable state or local law."
Note that under the Act, a name or SSN is considered a
"means of identification." So is a credit card number, cellular telephone
electronic serial number or any other piece of information that may be used alone or in
conjunction with other information to identify a specific individual. |
|
In most instances, a conviction for identity
theft carries a maximum penalty of 15 years imprisonment, a fine and forfeiture of any
personal property used or intended to be used to commit the crime. The Act also directs
the U.S. Sentencing Commission to review and amend the federal sentencing guidelines to
provide appropriate penalties for those persons convicted of identity theft.
Schemes to commit identity theft or fraud also may involve
violations of other statutes, such as credit card fraud; computer fraud; mail fraud; wire
fraud; financial institution fraud; or Social Security fraud. Each of these federal
offenses is a felony and carries substantial penalties - in some cases, as high as 30
years in prison, fines and criminal forfeiture.
State Laws Many states have passed laws
related to identity theft; others may be considering such legislation. Where specific
identity theft laws do not exist, the practices may be prohibited under other laws.
Contact your State Attorney General's office or local consumer protection agency to find
out whether your state has laws related to identity theft, or visit www.consumer.gov/idtheft.
State laws that had been enacted at the time of this
booklet's publication are listed below.
RESOLVING CREDIT
PROBLEMS
Resolving credit problems resulting from
identity theft can be time-consuming and frustrating. The good news is that there are
federal laws that establish procedures for correcting credit report errors and billing
errors, and for stopping debt collectors from contacting you about debts you don't owe.
Here is a brief summary of your rights, and what to do to
clear up credit problems that result from identity theft.
Credit Reports
The Fair Credit Reporting Act (FCRA) establishes procedures
for correcting mistakes on your credit record and requires that your record be made
available only for certain legitimate business needs.
Under the FCRA, both the credit bureau and the organization
that provided the information to the credit bureau (the "information provider"),
such as a bank or credit card company, are responsible for correcting inaccurate or
incomplete information in your report. To protect your rights under the law, contact both
the credit bureau and the information provider.
First, call the credit bureau and follow
up in writing. Tell them what information you believe is inaccurate. Include copies (NOT
originals) of documents that support your position. In addition to providing your complete
name and address, your letter should clearly identify each item in your report that you
dispute, give the facts and explain why you dispute the information, and request deletion
or correction. You may want to enclose a copy of your report with circles around the items
in question. Your letter may look something like the sample below.
Send your letter by certified mail, and request a return receipt so you can document what
the credit bureau received and when. Keep copies of your dispute letter and enclosures.
Credit bureaus must investigate the items in question -
usually within 30 days - unless they consider your dispute frivolous. They also must
forward all relevant data you provide about the dispute to the information provider. After
the information provider receives notice of a dispute from the credit bureau, it must
investigate, review all relevant information provided by the credit bureau and report the
results to the credit bureau. If the information provider finds the disputed information
to be inaccurate, it must notify any nationwide credit bureau that it reports to so that
the credit bureaus can correct this information in your file. Note that:
| Disputed information that cannot be verified
must be deleted from your file.
|
| If your report contains erroneous
information, the credit bureau must correct it.
|
| If an item is incomplete, the credit bureau
must complete it. For example, if your file shows that you have been late making payments,
but fails to show that you are no longer delinquent, the credit bureau must show that
you're current.
|
| If your file shows an account that belongs
to someone else, the credit bureau must delete it.
|
When the investigation is complete, the credit bureau must
give you the written results and a free copy of your report if the dispute results in a
change. If an item is changed or removed, the credit bureau cannot put the disputed
information back in your file unless the information provider verifies its accuracy and
completeness, and the credit bureau gives you a written notice that includes the name,
address and phone number of the information provider.
If you request, the credit bureau must send notices of
corrections to anyone who received your report in the past six months. Job applicants can
have a corrected copy of their report sent to anyone who received a copy during the past
two years for employment purposes. If an investigation does not resolve your dispute, ask
the credit bureau to include your statement of the dispute in your file and in future
reports.
Second, in addition to writing to the
credit bureau, tell the creditor or other information provider in
writing that you dispute an item. Again, include copies (NOT
originals) of documents that support your position. Many information providers specify an
address for disputes. If the information provider then reports the item to any credit
bureau, it must include a notice of your dispute. In addition, if you are correct - that
is, if the disputed information is not accurate - the information provider may not use it
again. For more information, consult How to Dispute Credit
Report Errors and Fair
Credit Reporting, two brochures available from the FTC or at www.consumer.gov/idtheft.
Credit Cards
The Truth in Lending Act limits your liability for
unauthorized credit card charges in most cases to $50 per card. The Fair Credit Billing
Act establishes procedures for resolving billing errors on your credit card accounts.
The Act's settlement procedures apply to disputes about
"billing errors." This includes fraudulent charges on your accounts.
To take advantage of the law's consumer protections, you must:
| write to the creditor at the address given
for "billing inquiries," not the address for sending your payments. Include your
name, address, account number and a description of the billing error, including the amount
and date of the error. Your letter may look something like the sample
below.
|
| send your letter so that it reaches the
creditor within 60 days after the first bill containing the error was mailed to you. If
the address on your account was changed by an identity thief and you never received the
bill, your dispute letter still must reach the creditor within 60 days of when the
creditor would have mailed the bill. This is why it's so important to keep track of your
billing statements and immediately follow up when your bills don't arrive on time.
|
SSend your letter by certified mail, and request a return
receipt. This will be your proof of the date the creditor received the letter. Include
copies (NOT originals) of sales slips or other documents that support your position. Keep
a copy of your dispute letter.
The creditor must acknowledge your complaint in writing
within 30 days after receiving it, unless the problem has been resolved. The creditor must
resolve the dispute within two billing cycles (but not more than 90 days) after receiving
your letter.
For more information, see Fair Credit Billing
and Avoiding Credit and
Charge Card Fraud, two brochures available from the FTC or at www.consumer.gov/idtheft.
Debt Collectors —
The Fair Debt Collection Practices Act prohibits debt
collectors from using unfair or deceptive practices to collect overdue bills that a
creditor has forwarded for collection.
You can stop a debt collector from contacting you by
writing a letter to the collection agency telling them to stop. Once the debt collector
receives your letter, the company may not contact you again - with two exceptions: they
can tell you there will be no further contact and they can tell you that the debt
collector or the creditor intends to take some specific action.
A collector also may not contact you if, within 30 days
after you receive the written notice, you send the collection agency a letter stating you
do not owe the money. Although such a letter should stop the debt collector's calls, it
will not necessarily get rid of the debt itself, which may still turn up on your credit
report. In addition, a collector can renew collection activities if you are sent proof of
the debt. So, along with your letter stating you don't owe the money, include copies of
documents that support your position. If you're a victim of identity theft,
including a copy (NOT original) of the police report you filed may be particularly useful.
For more information, consult Fair Debt Collection,
a brochure available from the FTC or at www.consumer.gov/idtheft
ATM Cards, Debit Cards and Electronic Fund
Transfers
The Electronic Fund Transfer Act provides consumer
protections for transactions involving an ATM or debit card or other electronic way to
debit or credit an account. It also limits your liability for unauthorized electronic fund
transfers.
It's important to report lost or stolen ATM and debit cards
immediately because the amount you can be held responsible for depends on how
quickly you report the loss.
| If you report your ATM card lost or stolen
within two business days of discovering the loss or theft, your losses are limited to $50.
|
| If you report your ATM card lost or stolen
after the two business days, but within 60 days after a statement showing an unauthorized
electronic fund transfer, you can be liable for up to $500 of what a thief withdraws.
|
| If you wait more than 60 days, you could
lose all the money that was taken from your account after the
end of the 60 days and before you report your card missing.
|
The best way to protect yourself in the event
of an error or fraudulent transaction is to call the financial institution and follow up
in writing - by certified letter, return receipt requested - so you can prove when the
institution received your letter. Keep a copy of the letter you send for your records.
| After notification about an error
on your statement, the institution generally has 10 business days to investigate. The
financial institution must tell you the results of its investigation within three business
days after completing it and must correct an error within one business day after
determining that the error has occurred. If the institution needs more time, it may take
up to 45 days to complete the investigation - but only if the money in dispute is returned
to your account and you are notified promptly of the credit. At the end of the
investigation, if no error has been found, the institution may take the money back if it
sends you a written explanation. |
A Special Word
About Lost or Stolen Checks
While no federal law limits your losses if someone steals
your checks and forges your signature, state laws protect you. Most states hold the bank
responsible for losses from a forged check. At the same time, however, most states require
you to take reasonable care of your account. For example, you may be held responsible for
the forgery if you fail to notify the bank in a timely manner that a check was lost or
stolen. Contact your state banking or consumer protection agency for more information. |
|
Note: VISA and MasterCard
voluntarily have agreed to limit consumers' liability for unauthorized use of their debit
cards in most instances to $50 per card, no matter how much time has elapsed since the
discovery of the loss or theft of the card.
For more information, consult Electronic Banking
and Credit and ATM
Cards: What to Do If They're Lost or Stolen, two brochures available from the FTC
or at www.consumer.gov/idtheft.
Sample
Dispute Letter — Credit Bureau
Date
Your Name
Your Address
Your City, State, Zip Code
Complaint Department
Name of Credit Bureau
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the following information in my
file. The items I dispute also are circled on the attached copy of the report I received.
(Identify item(s) disputed by name of source, such as creditors or tax court, and identify
type of item, such as credit account, judgment, etc.)
This item is (inaccurate or incomplete) because (describe
what is inaccurate or incomplete and why). I am requesting that the item be deleted (or
request another specific change) to correct the information.
Enclosed are copies of (use this sentence if applicable and
describe any enclosed documentation, such as payment records, court documents) supporting
my position. Please investigate this (these) matter(s) and (delete or correct) the
disputed item(s) as soon as possible.
Sincerely, Your name
Enclosures: (List what you are enclosing.) |
Sample
Dispute Letter — Credit Card Issuers
Date
Your Name
Your Address
Your City, State, Zip Code
Your Account Number
Name of Creditor
Billing Inquiries
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute a billing error in the amount of
$______on my account. The amount is inaccurate because (describe the problem). I am
requesting that the error be corrected, that any finance and other charges related to the
disputed amount be credited as well, and that I receive an accurate statement.
Enclosed are copies of (use this sentence to describe any
enclosed information, such as sales slips, payment records) supporting my position. Please
investigate this matter and correct the billing error as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing.) |
A Special Word About Lost or Stolen Checks
While no federal law limits your losses if someone steals
your checks and forges your signature, state laws protect you. Most states hold the bank
responsible for losses from a forged check. At the same time, however, most states require
you to take reasonable care of your account. For example, you may be held responsible for
the forgery if you fail to notify the bank in a timely manner that a check was lost or
stolen. Contact your state banking or consumer protection agency for more information.
RESOURCES
Federal Government
Federal Trade Commission (FTC) — www.ftc.gov
The FTC is the federal clearinghouse for complaints by victims of identity theft.
Although the FTC does not have the authority to bring criminal cases, the Commission helps
victims of identity theft by providing them with information to help resolve the financial
and other problems that can result from identity theft. The FTC also may refer victim
complaints to other appropriate government agencies and private organizations for action.
If you've been a victim of identity theft, file a complaint with the FTC
by contacting the FTC's Identity Theft Hotline by telephone: toll-free 1-877-IDTHEFT
(438-4338); TDD: 202-326-2502; by mail: Identity Theft Clearinghouse, Federal Trade
Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580; or online: www.consumer.gov/idtheft.
FTC publications:
Banking Agencies
If you're having trouble getting your financial institution
to help you resolve your banking- related identity theft problems including problems with
bank-issued credit cards contact the agency with the appropriate jurisdiction. If you're
not sure which agency has jurisdiction over your institution, call your bank or visit www.ffiec.gov/nic/default.htm.
Federal Deposit Insurance Corporation (FDIC) —
www.fdic.gov
The FDIC supervises state-chartered banks that are not members of the Federal
Reserve System and insures deposits at banks and savings and loans.
Call the FDIC Consumer Call Center at 1-800-934-3342; or
write: Federal Deposit Insurance Corporation, Division of Compliance and Consumer Affairs,
550 17th Street, NW, Washington, DC 20429.
FDIC publications:
Federal Reserve System (Fed) — www.federalreserve.gov
The Fed supervises state-chartered banks that are members of the Federal Reserve
System.
Call: 202-452-3693; or write: Division of Consumer and
Community Affairs, Mail Stop 801, Federal Reserve Board, Washington, DC 20551; or contact
the Federal Reserve Bank in your area. The 12 Reserve Banks are located in Boston, New
York City, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis,
Kansas City, Dallas and San Francisco.
National Credit Union Administration (NCUA) — www.ncua.gov
The NCUA charters and supervises federal credit unions and insures deposits at
federal credit unions and many state credit unions.
Call: 703-518-6360; or write: Compliance Officer, National
Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314.
Office of the Comptroller of the Currency (OCC)
— www.occ.treas.gov
The OCC charters and supervises national banks. If the word "national"
appears in the name of a bank, or the initials "N.A." follow its name, the OCC
oversees its operations.
Call: 1-800-613-6743 (business days 9:00 a.m. to 4:00 p.m.
CST); fax: 713-336-4301; write: Customer Assistance Group, 1301 McKinney Street, Suite
3710, Houston, TX 77010.
OCC publications:
Office of Thrift Supervision (OTS) — www.ots.treas.gov
The OTS is the primary regulator of all federal and many state-chartered thrift
institutions, which include savings banks and savings and loan institutions.
Call: 202-906-6000; or write: Office of Thrift Supervision,
1700 G Street, NW, Washington, DC 20552.
Department of Justice (DOJ) — www.usdoj.gov
The DOJ and its U.S. Attorneys prosecute federal identity theft cases.
Information on identity theft is available at www.usdoj.gov/criminal/fraud/idtheft.html.
Federal Bureau of Investigation (FBI) — www.fbi.gov
The FBI is one of the federal criminal law enforcement agencies that investigates
cases of identity theft. Local field offices are listed in the Blue Pages of your
telephone directory.
FBI publications:
Federal Communications Commission (FCC) — www.fcc.gov
The FCC regulates interstate and international communications by radio,
television, wire, satellite and cable. The FCC's Consumer Information Bureau is the
consumer's one-stop source for information, forms, applications and current issues before
the FCC.
Call: 1-888-CALL-FCC; TTY: 1-888-TELL-FCC; or write:
Federal Communications Commission, Consumer Information Bureau, 445 12th Street, SW, Room
5A863, Washington, DC 20554. You can file complaints via the online complaint form at
www.fcc.gov, or e-mail questions to fccinfo@fcc.gov.
Internal Revenue Service (IRS) — www.treas.gov/irs/ci
The IRS is responsible for administering and enforcing the internal revenue laws.
If you believe someone has assumed your identity to file federal Income Tax Returns, or to
commit other tax fraud, call toll-free: 1-800-829-0433. For assistance to victims of
identity theft schemes who are having trouble filing their correct returns, call the IRS
Taxpayer Advocates Office, toll-free: 1-877-777- 4778.
U.S. Secret Service (USSS) — www.treas.gov/usss
The U.S. Secret Service is one of the federal law enforcement agencies that
investigates financial crimes, which may include identity theft. Although the Secret
Service generally investigates cases where the dollar loss is substantial, your
information may provide evidence of a larger pattern of fraud requiring their involvement.
Local field offices are listed in the Blue Pages of your telephone directory.
Social Security Administration (SSA) — www.ssa.gov
SSA may assign you a new SSN - at your request - if you continue to experience
problems even after trying to resolve the problems resulting from identity theft. SSA
field office employees work closely with victims of identity theft and third parties to
collect the evidence needed to assign a new SSN in these cases.
SSA Office of the Inspector General (SSA/OIG)
The SSA/OIG is one of the federal law enforcement agencies that investigates cases of
identity theft.
Direct allegations that an SSN has been stolen or misused
to the SSA Fraud Hotline. Call: 1-800- 269-0271; fax: 410-597-0018; write: SSA Fraud
Hotline, P.O. Box 17768, Baltimore, MD 21235; or e-mail: oig.hotline@ssa.gov
SSA publications:
U.S. Postal Inspection Service (USPIS) — www.usps.gov/websites/depart/inspect
The USPIS is one of the federal law enforcement agencies that investigates cases
of identity theft. USPIS is the law enforcement arm of the U.S. Postal Service. USPIS has
primary jurisdiction in all matters infringing on the integrity of the U.S. mail. You can
locate the USPIS district office nearest you by calling your local post office or checking
the list at the web site above.
U.S. Securities and Exchange Commission (SEC)
— www.sec.gov
The SEC's Office of Investor Education and Assistance serves investors who
complain to the SEC about investment fraud or the mishandling of their investments by
securities professionals. If you've experienced identity theft in connection with a
securities transaction, write: SEC, 450 Fifth Street, NW, Washington, DC, 20549-0213. You
also may call 202-942-7040 or send an e-mail to help@sec.gov.
U. S. Trustee (UST) — www.usdoj.gov/ust
If you believe someone has filed for bankruptcy using your
name, write to the U.S. Trustee in the region where the bankruptcy was filed. A list of
the U.S. Trustee's Regional Offices is available on the UST web site, or check the Blue
Pages of your phone book under U.S. Government Bankruptcy Administration. Your letter
should describe the situation and provide proof of your identity. The U.S. Trustee, if
appropriate, will make a criminal referral to criminal law enforcement authorities if you
provide appropriate documentation to substantiate your claim. You also may want to file a
complaint with the U.S. Attorney and/or the FBI in the city where the bankruptcy was
filed.
The U.S. Trustee does not provide legal representation,
legal advice or referrals to lawyers. That means you may need to hire an attorney to help
convince the bankruptcy court that the filing is fraudulent. The U.S. Trustee does not
provide consumers with copies of court documents. Those documents are available from the
bankruptcy clerk's office for a fee.
State and Local Governments
Many states and local governments have passed laws related
to identity theft; others may be considering such legislation. Where specific identity
theft laws do not exist, the practices may be prohibited under other laws. Contact your
State Attorney General's office (for a list of state offices, visit www.naag.org) or local consumer protection agency to find
out whether your state has laws related to identity theft, or visit www.consumer.gov/idtheft/.
Credit Bureaus
Equifax — www.equifax.com
To order your report, call: 1-800-685-1111
or write: P.O. Box 740241, Atlanta, GA 30374-0241
To report fraud, call: 1-800-525-6285
and write: P.O. Box 740241, Atlanta, GA 30374-0241
Experian — www.experian.com
To order your report, call: 1-888-EXPERIAN (397-3742)
or write: P.O. Box 949, Allen TX 75013- 0949
To report fraud, call: 1-888-EXPERIAN (397-3742)
and write: P.O. Box 949, Allen TX 75013-0949
Trans Union — www.tuc.com
To order your report, call: 800-916-8800
or write: P.O. Box 1000, Chester, PA 19022.
To report fraud, call: 1-800-680-7289
and write: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634
PRIVACY POLICY
When you contact us with complaints or requests for
information, you can contact us by telephone, toll-free at 1-877-ID-THEFT (438-4338); by
postal mail: Federal Trade Commission, Identity Theft Clearinghouse, 600 Pennsylvania
Avenue, NW, Washington, DC 20580; or electronically via our online complaint form, located
at www.consumer.gov. Before you do, there are a few
things you should know.
The material you submit may be seen by various people. We
enter the information you send into our electronic database. This information is shared
with our attorneys and investigators. It may also be shared with employees of various
other federal, state, or local authorities who may use this data for regulatory or law
enforcement purposes. We may also share some information with certain private entities,
such as credit bureaus and any companies you may have complained about, where we believe
that doing so might assist in resolving identity theft-related problems. You may be
contacted by the FTC or any of the agencies or private entities to whom your complaint has
been referred. In other limited circumstances, including requests from Congress, we may be
required by law to disclose information you submit.
You have the option to submit your information anonymously.
However, if you do not provide your name and contact information, law enforcement and
other entities will not be able to contact you to obtain additional information to assist
in identity theft investigations and prosecutions. |
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