Identity Theft and Your Credit Report
Through June 30, 2015, the number of data breaches captured on a report by the Identity Theft Resource Center totaled 400 data incidents. The data accessible as a result of these breaches increases the possibility of identity theft.
The federal government estimates that approximately 9 million Americans are victims of identity theft each year. Identity theft occurs when personally identifying information, like your name, Social Security number, or credit card number, is taken by another individual, without your permission or consent, and then used to make fraudulent purchases or payments. Identity thieves can get your personal information a number of ways, including going through your trash, stealing your mail or your wallet or purse, obtaining your credit report by posing as an employer or landlord, or filling out a “change of address” form diverting your mail to another location. The criminal acts undertaken by identity thieves may include renting an apartment, obtaining a credit card, or establishing a telephone account in your name.
Getting your credit score is not difficult. You are entitled to one free copy of your credit report from each of the major credit reporting agencies each year. We suggest you request your free copy every year.
Checking your credit report can help you to catch possible identity theft. The problem is that your credit report may not be accurate. A 2013 report by the Federal Trade Commission showed that one in five (20%) of consumers had at least one error on one of their credit reports. 13% had errors serious enough to effect their credit score and 5% had errors so bad that the errors would cause them to be denied credit in their entirety. 5% may not sound like a big number but that equates to about 10 million consumers.
The Fair Credit Reporting Act (FCRA) requires Trans Union, Equifax and other credit bureaus to follow reasonable procedures to assure the accuracy of your credit reports. Obviously, a 20% error rate is not anywhere close to accurate.
What to do if your credit report is wrong
1. Dispute Any Inaccurate Information. Notify the credit bureau, in writing, exactly which information is inaccurate. Remember to only send copies of your documents – keep the originals!
2. Let the Creditor Know it is in Dispute. Notify the creditor or information provider that you are disputing information on your credit report.
3. Follow up on Your Dispute. The credit bureaus have a 30-45 day window to complete their investigation and are required to let you know the results within five days of its closure. You should follow up with them if they have not provided you a decision within that time frame. If your dispute was valid, and the information had to be corrected, the credit bureau is responsible for sending the correction to every credit reporting company that received the inaccurate information.
If you need legal assistance, or for further information about identity theft or your credit report, please contact Kennedy, Kennedy, Robbins & Yarbro, LC or call us at (573)686-2459. Under the FCRA, you may be able to recover $1,000 in statutory damages and your attorney’s fees if a lawsuit must be filed. Our commitment is to earn your confidence by answering all questions and providing quality representation.
