Identity Theft

What is Identity Theft?

Identity theft is the unauthorized use of another person’s personal identifying information to obtain credit, goods, services, money, or property.

Here are examples of personal identifying information:

• a person’s name
• address
• telephone number
• driver’s license number
• social security number
• place of employment
• employee identification number
• mother’s maiden name
• checking account number
• savings account number
• credit card number

For example, if someone used your (or opened a) credit card account or checking account without authorization, you are a victim of identity theft.

Identity Theft is a Huge Problem

Unauthorized Transactions on Credit Card

Since the Consumer Financial Protection Bureau (CFPB) began accepting debt collection complaints in 2013, the top complaint is attempts to collect a debt that a consumer claims is not owed.

Sometimes the creditors (e.g. credit card company or bank) do not believe that you are a victim, and continue to demand payment from you. There are laws to protect you, including the California Identity Theft Act (CITA), California Rosenthal Fair Debt Collection Practices Act (Rosenthal FDCPA), federal Fair Credit Billing Act (FCBA), the California Consumer Credit Reporting Agencies Act (CCRAA), and federal Fair Credit Reporting Act (FCRA).

Under the CITA, if you show that you’re a victim of identity theft you can obtain:

1. a court declaration that you do not owe the unauthorized debt;
2. a dismissal of any collection action against you; and
3. monetary compensation, including a penalty award of up to $30,000.

Under the Rosenthal FDCPA, if you provide a police report and written statement under oath that you are a victim of identity theft, the creditor must notify the credit bureaus that the debt (e.g. credit card balance) is disputed and stop collection activity until it has conducted an investigation into your claim.  The creditor may only recommence debt collection after it has made a “good faith” determination that the debt is owed.  If your creditor denies your dispute, it must provide the reasons for its decision before recommencing debt collection activity.

Under the FCBA, if you timely dispute a billing error on your credit card statement, the creditor has an obligation to conduct an investigation, and make corrections or provide a written explanation of the reasons why the dispute was denied.

Under the CCRAA and FCRA, if you submit a dispute to the creditor and/or credit bureaus disputing that you owe the debt, each have an obligation to reasonably investigate the dispute, and update any inaccurate or incomplete credit reporting based on the investigation.

In addition, some credit card companies promise “fraud security and protection” and a $0 fraud liability guarantee. A company’s failure to fulfill that promise may entitle you to compensation.

Unauthorized Transactions on Bank Accounts

Unauthorized transactions to your bank deposit account (e.g. checking or savings account) are also protected under the federal Electronic Funds Transfer Act (EFTA) and Regulation E.

Under Regulation E, if you timely dispute an error (e.g. unauthorized transaction or ATM withdrawal) on your monthly statement, the creditor has an obligation to conduct an investigation, and make corrections or provide a written explanation of the reasons why the dispute was denied.

If you think you’re the victim of identity theft and your bank, lender, or credit card company continues to hold you liable for the fraud, call (833) 729-5529.