Getting Rid of the Debt Collectors

What you should know:

The law says that if you write and ask a debt collector to leave you alone, they have to. Well that was easy! After that, all they can do is contact you to tell you they aren’t going to contact you anymore (which is kind of amusing), or to tell you that they’re going to take some specific action.

What you should do:

On the off chance that that specific action might be something unpleasant, it’s best to write to the collection agency—within 30 days of receiving their notice—and tell them that you don’t actually owe the debt. Explain about the identity theft, and include any documentation.

What they have to do:
In order to keep bugging you, they need to provide you with proof that you do owe the debt. Often, your debt will just be referred back to the original creditor.

What you should do then:
Getting rid of debt collectors doesn’t get rid of the debt.You still need to contact the creditor and deal with that little detail.

Dealing With Debit Cards

What you should know:

Your liability when money is stolen from your bank account, with a debit or ATM card for instance, all depends on how quickly you report the theft, so you’ve got to act fast…really fast. If you report it within 2 days, you’ll only lose $50. If it takes more than 2 days, but under 60, you can lose up to $500, and if it takes you more than 60 days to report the theft, you can lose all the money you had in your account. (Some debit card companies voluntarily cap your liability at $50, same as a credit card. Check with your financial institution to find out their policy.)

What you should do:

Take all the same steps you would take if this were a credit card fraud. In this case, because timing is everything, it’s even more important to send the letter certified mail, return receipt requested.

What they have to do:

You had to act fast, so it’s only fair that they do too. Your financial institution has ten days to investigate your case, three days to notify you of the result, and one day to fix the error once they’ve finished investigating. If it takes longer than that, they must return the money to your account while they investigate, for up to 45 days.

They’ll want that money back if they find out you really did spend it, but they have to notify you in writing first.

Clearing Up Credit Fraud

What you should know:
In most cases, your liability when a thief steals your credit card and hits the mall is limited to $50 per card. (Some banks and card companies offer $0 liability—an even better deal.) To take advantage of this deal, though, you need to act promptly.

What you should do:
From the time you receive the credit card statement listing the fraudulent charge, you have 60 days to dispute that charge. This is true even if the thief changed your address and you never actually received the statement listing the $5,000 he spent on Elvis memorabilia—so keep track of your billing cycles! When you write to the credit card company, include your name, account number, and a detailed list of the fraudulent charges, including the date and the amount. Make sure you address the letter to the billing inquiry department, and—all together now—send it certified mail, return receipt requested. Don’t forget to include all relevant documentation.

What they have to do:
The credit card company has 30 days to let you know they received your letter, and must resolve the dispute within two billing cycles (90 days max).

What you should do then:
It’s important to get a letter from the credit card company which says that the charges were fraudulent and that they have been removed. Hang on to the original of this letter like it’s a winning lottery ticket—and include a copy whenever you write to credit bureaus or debt collectors. You’ll want to get the same kind of letter when you shut down bad credit accounts that the thief opened in your name.

File a Complaint With the FTC

In addition to all the other paperwork, it’s a good idea to call the Federal Trade Commission to report the crime.

Why? Although they can’t catch the bad guys for you, they maintain a database of information for law enforcement types, who just might be able to track down your thief. Also, the FTC uses the information they gather to learn more about identity theft, which helps them help victims like you.

These guys are on your side, so give them a call and tell your story.

To notify the FTC, call 1-877-IDTHEFT.

The Identity Theft Affidavit

This handy tool is a standard form—a three-page master key to identity theft repair. It can help you begin to fix up your credit, especially if you are unable to get a police report. Many companies accept the ID Theft Affidavit as a fraud dispute form, which is nice unless you really like endless paperwork. (Some companies still want you to fill out their own forms, so check first.)

How to Stay Organized and Be Effective

If tying a string around your finger is your only system for keeping track of stuff, your hands will soon be so knotted with string that you won’t be able to dial the phone. Maybe you should find a new system, before you cause a national string shortage. Try these strategies:

• Send all letters certified mail, return receipt requested. This gives you a record of when you sent something and when it was received.
• If you want to play it extra safe, ask the people you speak to for written confirmation of your conversations. If they refuse, you can write to them (certified mail, return receipt requested, of course), list what was said, and ask them to write back if anything is incorrect. If they don’t reply, that can serve as your confirmation.
• Keep copies of all letters and forms you send.
• Keep the originals of every piece of paper you didn’t generate—like police reports, credit reports, and all letters you receive.
• Hang on to all your old files, even after you think the ordeal is over. If any¬thing comes back to haunt you, Murphy’s Law says you’ll need that one piece of paper you threw out.
• Always have a plan of action. List what you need to accomplish, how you can do it, and whom you’ll need to speak to.
• Keep a log of everything you do—every letter you send and receive, every phone call you make. (You can leave out the bathroom breaks.)
• Keep records of all phone conversations: names of the persons you spoke to, their titles, and phone numbers; what you discussed; what they agreed to and when; what they need from you and when.
• Use a filing system that will give you ready access to everything you need. (That pile in the corner is not a filing system.)
• Follow up all phone calls and face-to-face conversations in writing. The people you talk to at credit card companies and law enforcement agencies may deal with hundreds of calls just like yours every day. Even if they sound reassuring on the phone, they might forget you the moment they hang up, and it’s only your word against theirs that you ever spoke. Putting things in writing will jog some memories and give you proof that the communication actually occurred.
• You may want to keep track of your costs, in case your thief is caught. Your chances of getting some money back are much better if you keep a log and save your receipts. Eligible expenditures may include: phone calls, postage, mileage, legal assis¬tance, notarizing, court costs for documentation, time lost from work, organizational and reference materials, and personal assistance like a babysitter or an accountant.

Identity Theft Solutions – File a Police Report

Throughout this process, you’re going to be faced by skepticism. Companies will want some kind of proof that you really are a victim, and not just some jerk trying to get out of paying your debts. A police report is the best proof you can offer, because creditors assume you wouldn’t file a police report unless you really meant it. (You wouldn’t, right? Don’t make us come over there!)

The problem is, it can sometimes be difficult to get the police to take you seriously, so you’ll have to be persistent. Explain that without a police report you have no way to stop the theft and repair your credit. Provide the police with copies of any documentation you already have, like your credit report, debt collection letters, or the ID Theft Affidavit. If the local police still refuse to help you, go to the county police, and then try the state police. If they say identity theft isn’t a crime in your state, ask to file a Miscellaneous Incident Report instead.

When you file the report, be certain that it lists every instance of fraud committed with your identifying information. And make sure you get a copy of it, so you can send copies to creditors. (When you do that, it’s also helpful to include the phone number of the investigating officer.) If you absolutely can’t get a copy of the police report, get the report number, and ask for a letter stating that the report couldn’t be given to you.

Identity Theft Solutions – Shut Down All Compromised Accounts

This means you pull the plug on both types of accounts—your old accounts the thief was misusing, plus any new accounts the thief opened in your name. Don’t forget that this could include credit card companies or service providers like your phone, ISP, or utilities. When you reopen your accounts, make sure you have a new account number, and guard it with a new password. (Use something only you could know—which is kind of the point of a password.) You can protect your rep by asking the creditor to classify the old account as “closed at customer’s request.” The other option—”Card lost or stolen”—can make you look careless, even though we know it wasn’t your fault.

If your ATM or debit card was stolen, the procedure is pretty much the same. Report the theft ASAP, cancel the card, and get a new card with a new PIN. If the identity thief stole checks, call the bank and stop payment on any outstanding checks you didn’t write. Then contact the check verification services so they can tell their retailers not to accept checks from the thief.

Closing accounts that were yours to begin with is pretty easy. The hard part is getting rid of the charges that you didn’t make, and closing accounts you didn’t ever open. Ask to speak to the fraud department of the bank, retailer, or credit card company. and find out what forms you need to dispute fraudulent charges and accounts. You may be able to use the ID Theft Affidavit—a standard form available online. Or you may need to use the company’s own forms. For now, go on record about everything you are disputing, and have the forms you need sent to you. Be sure to follow these calls up in writing to make things extra-official. If you’re dealing with a new account. get as much documentation about it as you can, such as a copy of the application used to open the account and transactions records.

If the creditor won’t give up the goods on your thief’s account. its probably because of their security policy—take a moment to laugh at the irony. Then keep trying. Getting the cops involved, or at least getting a police report, can help.

Identity Theft Solutions -Contact the Credit Bureau Fraud Departments

First things first, you need to get a fraud alert and a victim statement placed on your credit reports. The fraud alert is a signal to businesses that someone’s been doing nasty things with your identity. It will prompt a credit card company to be a little more careful next time “you” apply for a card. The victim statement is a word from you, and you want it to go something like this: “My identifying information has been used to commit fraud. Please call me at [insert your phone number] to verify all applications.” (Please note that fraud alerts and victim statements will make it more complicated for you to apply for credit—that’s the point! If it’s a hassle for you, it should be impossible for a thief.)

To make things less complicated, for once, one phone call will do the job of notifying all three credit bureaus. Call any one of the fraud departments listed below, tell them you are a victim, and ask for a fraud alert and victim statement. Once one credit bureau has your info, they’ll bring the other two up to speed. Fraud alerts will be placed on all of your credit reports, and you’ll receive a complimentary copy of each report. (When these arrive, check them carefully to make sure you’re aware of all the fraud that’s occurred.)

The “one-call” system only places fraud alerts and victim statements on your report for a short period of time—usually three to twelve months. To make it more permanent, seven years of permanence to be exact, you’ll need to write to each credit bureau separately and request a renewal.
Be careful, however: if your situation was minor and easily cleared up, you may not want a fraud alert on your record for seven long years, since the alert will make it harder for you to get credit when you need it.

Also, keep in mind that credit grantors abide by fraud alerts and victim statements on a voluntary basis only. So far, no law requires that they do so. This means it may still be possible for a thief to open accounts in your name, so continue to order your credit reports every three months for at least a year.

Identity Theft Victims – How to Cope When it Happens to You

Typically, when a crime is committed, the police take care of things. It’s what they’re paid to do. When the crime is identity theft, however, you get to take on your case all by yourself. And cleaning up the mess a thief made is a huge chore.

In more complicated identity theft cases, when multiple new accounts are opened in your name, restoring your credit can take tons of time, money, and dedication. You might even have to take time off work to focus on the project, which can take months upon frustrating months to complete.

Emotional Impact

Bottom line: It’s not fun, and it’s not fair. It’s okay, healthy even, to be furious about it. You’ll probably feel some combination of anger, hurt, helplessness, dread, even betrayal if the thief is someone you know, and these kinds of feelings are totally to be expected. So talk to a friend, punch a pillow, or maybe even talk to a professional. And then try to look at your new full-time job—restoring your credit—as the perfect way to keep your mind off all those messy emotions!

Practice Safe Internet Shopping

Ahh, Internet shopping. No lines, no crowded parking lot…you don’t even have to put on a shirt. And neither does an identity thief before he hacks into a web merchant’s database and steals your credit card number.

Online shopping isn’t quite so convenient if it results in identity theft, so before you and your credit card get too cozy over there, check out these rules for shopping smart.

• Shop from secure sites, which will encrypt your order info—including your credit card number—before sending it to a merchant. To make sure your connection is secure, look for “https://” at the beginning of the URL in the address bar (it’s the “s” that’s important). Also check for a little picture of a padlock or an unbroken key in the bottom right hand corner of your browser.
• Read privacy policies. Secure ordering only protects your information en route. A privacy policy should tell you if the company is going to store and use your information safely once it arrives.
• Shop at sites you know. If you aren’t sure about a site, do a little research before you divulge your digits.
• Look for privacy seals—like BBBOnline, TRUSTe, or VeriSign—on the sites where you shop. These colorful little logos, usually located at the bottom of a homepage, certify that the company adheres to certain privacy and security guidelines. Click on the seal to make sure it’s genuine, and to find out exactly what its placement on the site means.
• Shop with a credit card—not a debit card. If a thief intercepts your credit card number and runs up charges, federal law limits your liability to $50 per card. If the same thing happens with your debit card, you can lose $500 or more.
• Keep detailed records of your online purchases in case anything goes wrong.
• Log off after using public Internet terminals, and, if possible, save your shopping for your home computer.
• Use special software to wipe your hard drive clean before chucking your old computer.

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