Identity theft can damage a credit report when someone uses your personal information to open accounts, obtain loans, make purchases, or create debts in your name. Fraudulent accounts, collections, inquiries, addresses, and other information may then appear in reports used for credit, housing, or employment decisions.
Fowkes & Hasanbasic represents consumers throughout Florida in Fair Credit Reporting Act cases involving identity-theft information and inadequate credit-report investigations. We evaluate potential FCRA matters without charge, and clients pay no out-of-pocket attorney’s fees to retain the firm for an accepted FCRA case.
For a free case review, call (727) 500-1010.
Contents
Is Identity Theft Affecting Your Credit Report?
You may have a credit-report identity-theft problem when an account or transaction was created through unauthorized use of your identity and a credit bureau continues reporting it after receiving the information required by the FCRA. Whether the facts support a claim depends on the accuracy of the report, the materials submitted, which company received notice, how it responded, and what harm followed.
What Is Credit-Report Identity Theft?
Identity theft occurs when another person uses identifying information—such as a Social Security number, date of birth, driver’s-license information, account credentials, or other personal data—without authorization. The resulting credit-report information may include:
- Credit cards or loans you did not open
- Collections arising from fraudulent accounts
- Hard inquiries connected to unauthorized applications
- Balances or late payments on accounts created by an identity thief
- Addresses, telephone numbers, or employers associated with the fraud
- Utility, telecommunications, or other service accounts that are not yours
An unfamiliar account is not always caused by identity theft. It may instead result from a mixed credit file, a furnisher’s reporting error, an account-authority dispute, or another problem. The complete reports and underlying records help identify the cause.
Identity Theft vs. a Mixed Credit File
| Identity theft | Mixed credit file |
|---|---|
| Someone uses your identity or personal information without authorization. | A consumer reporting agency associates another consumer’s legitimate information with your file. |
| The account or transaction arose from fraud. | The account may be valid for the other consumer but does not belong in your file. |
| The FCRA identity-theft blocking process may apply. | The evidence often focuses on mismatched identifiers and the bureau’s file-matching procedures. |
A report can contain signs of both problems. Correctly identifying the source matters because the supporting records and legal duties may differ.
What Is an FCRA Identity-Theft Block?
15 U.S.C. § 1681c-2 establishes a process for blocking information that resulted from alleged identity theft. Subject to the statute’s provisions, a consumer reporting agency must block qualifying information within four business days after receiving:
- Appropriate proof of the consumer’s identity
- A copy of an identity-theft report
- Identification of the information resulting from the alleged identity theft
- A statement that the information does not relate to a transaction by the consumer
A block request is different from simply writing “not mine.” The documents should clearly connect the identity theft to each account or item the consumer wants blocked.
A bureau may decline or rescind a block in circumstances permitted by the statute, including certain material misrepresentations or when the consumer obtained goods, services, or money from the transaction. A refusal or rescission therefore requires review of both the consumer’s submission and the bureau’s stated reason.
Identity-Theft Block vs. Ordinary Credit Dispute
| Identity-theft block | Ordinary dispute |
|---|---|
| Applies to information resulting from alleged identity theft. | Can address many kinds of inaccurate or incomplete reporting. |
| Requires the materials identified in § 1681c-2. | Should identify the specific error and include relevant supporting records. |
| The statutory block generally must occur within four business days after receipt of a qualifying submission. | A bureau reinvestigation generally follows the timing rules in 15 U.S.C. § 1681i. |
The appropriate path depends on the facts. Consumers should not characterize a non-identity-theft account as fraudulent merely to seek a block.
Steps to Take After Discovering Identity Theft
- Preserve complete credit reports. Save reports showing the fraudulent information, identifying data, inquiries, report dates, and report numbers.
- Create an FTC Identity Theft Report. Use the federal government’s recovery resource at IdentityTheft.gov.
- Identify each fraudulent item. List the creditor or collector, partial account number, balance, dates, and each bureau displaying the information.
- Prepare a documented block request or dispute. Include the materials required for the process being used. Send copies rather than original documents and redact information that is not needed.
- Consider a police report when appropriate. A police report may provide useful corroboration, but it is not accurate to say that every consumer must submit both a police report and an FTC report in every situation.
- Freeze your credit files. A security freeze can help prevent new accounts. Contact Equifax, Experian, and TransUnion separately. The federal credit-bureau contact page provides current contact information.
- Consider a fraud alert. The federal government explains that contacting one nationwide bureau to place a fraud alert requires that bureau to notify the other two.
- Preserve every response. Keep investigation results, block decisions, updated reports, letters, emails, envelopes, delivery records, and notes of telephone calls.
- Document resulting harm. Save denial letters, adverse-action notices, loan terms, collection communications, housing or employment records, out-of-pocket losses, and contemporaneous evidence of emotional distress.
The Consumer Financial Protection Bureau explains the documents used for an identity-theft block and the four-business-day rule in its identity-theft guidance.
What Evidence Matters in an Identity-Theft Credit-Reporting Case?
We commonly examine:
- Complete credit reports before and after the block request or dispute
- The FTC Identity Theft Report and any police report
- Proof of identity submitted to the bureau
- A precise list of the fraudulent accounts and transactions
- Applications, statements, signatures, addresses, telephone numbers, and transaction records associated with the accounts
- Every dispute, block request, attachment, and delivery record
- The bureau’s and furnisher’s responses
- Whether information was blocked, verified, reinserted, or transferred elsewhere in the file
- Collection activity after notice of identity theft
- Evidence of financial, credit, housing, employment, or emotional harm
What Duties May Apply Under the FCRA?
Blocking identity-theft information
Section 1681c-2 governs the block of qualifying identity-theft information and includes requirements affecting consumer reporting agencies and furnishers.
Reasonable reinvestigation
Under 15 U.S.C. § 1681i, a consumer reporting agency generally must conduct a reasonable reinvestigation after receiving a qualifying dispute. The reasonableness of the investigation may depend on the detail and documents supplied, the nature of the fraud, and the information available to the bureau.
Reasonable procedures for accuracy
Under 15 U.S.C. § 1681e(b), a consumer reporting agency preparing a report must follow reasonable procedures designed to assure maximum possible accuracy.
Furnisher investigation duties
After a credit bureau notifies a furnisher of a consumer’s dispute, the furnisher may have investigation and reporting duties under 15 U.S.C. § 1681s-2(b). The notice path matters because a direct complaint to a furnisher does not necessarily create the same private FCRA claim.
The appearance of fraudulent information alone does not automatically establish liability. The evidence must connect the reporting to a failure by a particular defendant to comply with a legal duty and to resulting harm.
Example of a Potential Identity-Theft Reporting Problem
A Florida consumer discovers credit-card and collection accounts opened using the consumer’s identity. The consumer submits proof of identity, an FTC Identity Theft Report, a statement identifying each fraudulent account, and confirmation that the transactions were unauthorized. A bureau blocks some accounts but continues reporting another account, or later allows blocked information to return.
The legal analysis includes whether the submission satisfied the applicable statutory requirements, what notice each company received, why any block was declined or rescinded, how the companies investigated, what was reported afterward, and what harm resulted.
This example is illustrative only. Liability and damages depend on the evidence in the individual case.
Potential Damages Under the FCRA
Available remedies depend on the violation, causation, the defendant’s state of mind, and the proof.
- Actual damages: Potentially including credit denials, increased borrowing costs, lost housing or employment opportunities, out-of-pocket expenses, and supported emotional distress.
- Statutory damages: For willful noncompliance, the FCRA permits statutory damages of $100 to $1,000 as an alternative to actual damages under 15 U.S.C. § 1681n.
- Punitive damages: Potentially available for willful noncompliance.
- Attorney’s fees and costs: A prevailing consumer may recover reasonable attorney’s fees and costs under the applicable FCRA provisions.
No particular result is guaranteed, and statutory damages are not automatically available for every inaccurate account or every dispute.
Frequently Asked Questions About Identity Theft and Credit Reports
What is an FTC Identity Theft Report?
It is a report created through IdentityTheft.gov that documents a consumer’s report of identity theft and can be used as part of the FCRA blocking process.
Do I always need both an FTC report and a police report?
No. Section 1681c-2 requires an identity-theft report, but it is too broad to say that every consumer must always provide both an FTC report and a separate police report. The appropriate documentation depends on the facts and the process being used.
How quickly must a credit bureau block qualifying identity-theft information?
Section 1681c-2 generally requires a block within four business days after the bureau receives all required materials, subject to the statute’s other provisions.
Is a credit freeze the same as an identity-theft block?
No. A freeze restricts access to a credit file to help prevent new accounts. A block removes qualifying identity-theft information from the report. A fraud alert is another separate protection.
What if the bureau says the fraudulent account was verified?
“Verified” does not resolve whether the information is accurate, whether a qualifying block request was handled properly, or whether the investigation was reasonable. The submission, supporting records, response, and post-dispute reporting must be compared.
Can a bureau decline or reverse an identity-theft block?
Yes, in circumstances authorized by § 1681c-2. The stated basis and supporting information should be reviewed carefully.
Can I sue whenever a fraudulent account appears on my report?
Not automatically. A potential claim depends on the applicable FCRA duty, notice, the responsible company’s conduct, causation, and damages.
What if a collector continues pursuing an identity-theft debt?
Collection conduct may raise separate issues depending on what the collector knew, the notices and documents it received, and how it responded. Preserve all collection communications for review.
Why Choose Fowkes & Hasanbasic?
- Florida consumer-law attorneys with substantial FCRA litigation experience
- Representation available throughout Florida
- Direct attorney evaluation of potential claims
- No charge for the initial case review
- No out-of-pocket attorney’s fees to retain the firm for an accepted FCRA case
Request a Free Identity-Theft Case Review
If fraudulent accounts or other identity-theft information remains on your credit report, preserve the complete reports, block requests, disputes, and responses and contact Fowkes & Hasanbasic.
Call (727) 500-1010.
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Paul R. Fowkes, Esq., is a co-founding shareholder of Fowkes & Hasanbasic and has more than 20 years of experience handling consumer-related claims in Florida. His practice includes Fair Credit Reporting Act litigation involving credit bureaus, furnishers, identity theft, mixed files, inaccurate account reporting, and consumer disputes.
Read Paul Fowkes’s biography or verify his license through The Florida Bar.
This page provides general information and is not legal advice. Reading it or contacting the firm does not create an attorney-client relationship. Past experience does not guarantee a particular outcome.