Identity thieves can open loans in your name, leaving you liable for debt you never borrowed. Here's what to do if this happens.
First, check your credit reports immediately. Request free reports from Equifax, Experian, and TransUnion at annualcreditreport.com. Look for unfamiliar loans, accounts, or inquiries. These reports show the damage and create a paper trail for authorities.
Next, place a fraud alert with all three credit bureaus. This alert tells lenders to verify your identity before opening new accounts. You can file the alert online, by phone, or by mail. The initial alert lasts 90 days; an extended alert lasts seven years if you're an identity theft victim.
Contact the lender that issued the fraudulent loan immediately. Explain that someone opened the account without authorization. Request written confirmation that you dispute the debt. Ask them to note your account as victim of fraud and to stop collection efforts.
File a report with the Federal Trade Commission at IdentityTheft.gov. The FTC creates an official record of your complaint and provides a recovery plan tailored to your situation. You'll receive an Identity Theft Report, which you can use with creditors and law enforcement.
Report the crime to local police and the FBI's Internet Crime Complaint Center (IC3). Get a police report number. Many lenders require this documentation before removing fraudulent accounts from your record.
Send written disputes to the credit bureaus detailing the fraudulent loan. Include copies of your police report and the lender's correspondence confirming the fraud. The bureaus must investigate within 30 days and remove unverified accounts from your reports.
Monitor your credit regularly going forward. Consider placing a credit freeze with all three bureaus, which prevents anyone from opening accounts in your name without your PIN. Freezes cost nothing and remain in place until you