If you have not been the victim of this type of theft, somebody you know may have been a victim. As our goal here at My Real Estate Advisor Team is to guide you on your real estate journey, we want you to be well informed so you, and those around you, can protect your financial and personal reputation that is out in the global marketplace.

Credit challenges and identity theft are two major headaches when it comes to applying for a home loan, or any other types of credit for that matter. It is unsettling to find out that someone has used your identity to steal or access your private information. There are steps you can take to resolve identity theft, and to clear off errors in your credit report. It’s not a simple phone call, and it does take effort, but it is a fight you want to take on and one you can win. The results are a better credit score and piece of mind knowing your identity is safe from predators.

The Plan – Get Back Your Identity

The Federal Trade Commission (The FTC) has a useful plan for reporting and correcting identity theft. When it comes to theft of any kind, you need to report it and get help. You can’t correct it on your own, but the law is on your side. To start you need to know your rights when it comes to your information and identity when dealing with this personal theft.

If someone steals your identity, you have the right to:

1. Get free copies of your credit report
2. Create an FTC Identity Theft Report
3. Place a one-year fraud alert on your credit report
4. Place a seven-year extended fraud alert on your credit report
5. Get fraudulent information removed (or “blocked”) from your credit report
6. Dispute fraudulent or inaccurate information on your credit report
7. Stop creditors and debt collectors from reporting fraudulent accounts
8. Get copies of documents related to the identity theft
9. Stop a debt collector from contacting you.

Step One – Get Your Credit Report

First Step (if you haven’t already followed our previous advice go back and look at “1st-Time Buyers – How’s Your Credit?“)

The federal government mandates that every consumer can get a free credit report one time each year. You can get your free comprehensive credit report in one easy step from all three reporting agencies (Equifax, Experian, and TransUnion) by going to annualcreditreport.com or call (877) 322-8228.

Review your reports. Make note of any account or transaction you don’t recognize. This will help you report the theft to the FTC and possibly the police.

Step 2: Start The Fight!

Initiate the identity theft reporting process by using the FTC’s online Identity Theft Reporting Assistant to fill out a formal report.

• Complete the online form or call (877) 438-4338. Include as many details as possible.
• Based on the information you enter, IdentityTheft.gov will create your Identity Theft Report and recovery plan.

If you create an account at the FTC’s website, the assistant will automatically walk you through each recovery step, update your plan as needed, track your progress, and pre-fill forms and letters for you. These are powerful tools you can use to get things straightened out with your creditors, insurance companies, banks, and your employer.

Step 3: Stop The Bleeding!

Call all of the companies where you know fraud has occurred.

• Call the fraud department at each organization. Explain that someone stole your identity.
• Ask them to close or freeze the accounts. Then, nobody can add new charges unless you agree.
• Change logins, passwords and PINS for your accounts.

You might have to contact these companies again after you have an FTC Identity Theft Report.

Step 4: Contact Your Creditors

The next step is to document things formally. Reporting to your creditors that you are a victim carries more weight when you have a formal report for them to look at. The FTC Identity Theft Report is a key place to start because it proves to your creditors and employer that someone actually has stolen information related to you and your identity. It helps you repair credit and correct errors in reporting on your credit history, with your employer, and insurance companies.

Place a “Fraud Alert” and get your credit reports.

• Place a free, one-year fraud alert by contacting one of the three credit bureaus. That company must tell the other two.
  • Experian.com/help
    888-EXPERIAN (888) 397-3742
  • TransUnion.com/credit-help
    (888) 909-8872
  • Equifax.com/personal/credit-report-services
    (800) 685-1111

A fraud alert is FREE. It will make it harder for someone to open new accounts in your name. When you have an alert on your report, a business must verify your identity before it issues new credit in your name. You can renew the fraud alert after one year.

You’ll get a letter from each credit bureau. It will confirm that they placed a fraud alert on your file.

Step 5: Call the Police

If you choose, you can also go to your local police department and file a police report with them.

You will need the following to file a police report that connects with your Identity Theft Report at the FTC.

• A copy of your FTC Identity Theft Report
• A government-issued ID with a photo
• Proof of your address (mortgage statement, rental agreement, or utility bills)
• Any other proof you have of the theft (bills, IRS notices, etc.)
• A hard copy of the FTC’s Memo to Law Enforcement – (Download Here)

It is difficult for the local police to work actively on finding and arresting a person who is stealing your identity. But, in some cases it does happen. However, most identity theft is cyber related, and laws governing those crimes are often bigger than local law enforcement can handle on their own.

A concerted effort on your part to deal with identity theft may prove that a local person has stolen your identity through mail theft, or other covert action in a retail store you frequent, or even a gas station. Be vigilant and keep your private info private. Don’t just trust somebody by handing them your card without noting who you have just handed your card to. Should a fraudulent charge show up from you using your card at a restaurant or gas station, you may be able to identify the person and then local law enforcement can get directly involved.

Having a complete team assisting you in the resolving of identity theft is very helpful because you do not know where it may be coming from.

Finish Off The Details

Now that you have done the hard work of letting every body know about the theft, just take a breath and relax for a day or so.  You will need a break before the specific work of removing each error against your identity.
Those next steps may include:

• Closing any bank or credit accounts opened in your name without your permission.
• Removing any fraudulent charges from your credit and/or bank accounts.
• Correcting specific issues on your credit report.

You may have very specific types of identity theft against specific accounts like your social security account, government issued IDs, utilities, phones, investment accounts, and even may have seen a bankruptcy reported in your name. Going to the FTC’s website will help answer all of your questions, and get you started in the right direction.

For More Info on resolving Identity Theft:
https://www.annualcreditreport.com/protectYourIdentity.action
https://www.consumer.ftc.gov/topics/identity-theft
Free Identity Theft Resources