A fraudster opening a loan in your name creates an immediate financial and legal crisis. Here's what you need to do right now.
First, contact the lender directly. Call the phone number on your statement or the official customer service line from the lender's website. Never use contact details from the suspicious communication itself. Report the fraudulent account and request they freeze it immediately. Document the call with the date, time, and representative's name.
Next, file a report with the Federal Trade Commission at IdentityTheft.gov. This creates an official record and generates an Identity Theft Report that creditors recognize as proof of fraud. You'll need this document for the remaining steps.
Place a fraud alert on your credit file with one of the three major bureaus: Equifax, Experian, or TransUnion. When you contact one bureau, they notify the other two automatically. This alert tells lenders to verify your identity before approving new credit. The alert lasts one year. For serious cases involving a loan taken fraudulently, request a credit freeze instead, which blocks access to your entire credit file.
Pull your credit reports from AnnualCreditReport.com, the only federally authorized free source. Look for accounts you don't recognize. File disputes directly with each credit bureau listing the fraudulent account. Include a copy of your Identity Theft Report with each dispute.
Consider filing a police report. Some lenders require this before removing fraudulent accounts. You'll receive a police report number to include in credit disputes.
Monitor your mail and bank accounts closely over the coming weeks. Fraudsters sometimes redirect billing statements or attempt additional identity theft. Check your credit reports again in 30 days, 90 days, and six months.
If the loan shows as delinquent, contact the lender's loss mitigation department. Explain the situation and request they remove negative marks