Archive for the ‘Credit Problems’ Category

So you found out that you’ve become a victim of identity theft. Perhaps you applied for new credit and suddenly discovered some bogus accounts or some derogatory information on your credit report. Now what do you do?

You’re likely to find that talking to the lender is futile. They simply cannot take what you are saying at face value; as unfair as it is, you’re going to need to prove that you have in fact become an identity theft victim and dispute each inaccurate or fraudulent entry in your credit file. The following can help you work through the problem.

• Identify inaccuracies on your credit report. Continue to examine your credit files closely. Obtain a copy of your credit report from all three bureaus, and review them to identify any inaccurate, fraudulent, or otherwise suspicious information.
• File a police report. If you’re the victim of identity theft, you need to file a police report. The report will be instrumental in helping you clean up your credit file and getting creditors to understand that you’re an identity theft victim.
• Choose the reports to dispute. Not all bureaus have the same information, so you may not be disputing a particular activity with all three bureaus. Dispute the inaccuracy with the specific bureau that issued the report. If more than one bureau is reporting the inaccurate or fraudulent information, you’ll need to dispute it at each one.
• Prepare the dispute letter. A dispute letter should include the date, your name and address, and clearly identify the specific item that you are disputing. Lay out the facts, and explain why you’re disputing the item. You should attach a copy of the credit report with the disputed item circled or highlighted, along with any and all documentation that supports your position. Specifically state in the letter that you’re requesting that the item be deleted/corrected. There are a variety of sample dispute letters on the credit bureau websites that you can use as a reference.
• Send the dispute letter. The dispute letter needs to be sent to each bureau that issued inaccurate information. You need to send the letter via certified mail, return receipt requested, so you can document that the credit bureau received your letter. Keep copies of your dispute letter, all attachments, and any future correspondence that you send or receive.
• Monitor the progress. Cleaning up fraudulent activity can take a while. Once you’ve sent the letter to the credit bureau(s), you need to make sure that they respond in a timely fashion. Sometimes you may be working on several issues with each of the credit bureaus. Make sure they received the report through certified mail, and allow them approximately 30 days to investigate the item. If you haven’t heard from them after 30 days, contact them again, and provide any needed supporting documentation to prove your case.

Cleaning up the work of an identity crook isn’t easy. It can be time-consuming and frustrating, but if you follow a process, your perseverance can pay off.