Resolving identity theft problems can be time consuming and frustrating.
It can take months, even years, to clear your good name and credit record.
In the meantime, you may find it difficult to obtain credit, write checks,
acquire loans or find employment. However, the following laws and procedures
have been established to protect you.
Identity Theft And Assumption Deterrence Act Of 1998
This Act makes it a federal crime when someone “knowingly transfers or uses,
without lawful authority, a means of identification of another person with
the intent to commit, or to aid or abet, any unlawful activity that constitutes
a violation of federal law, or that constitutes a felony under any applicable
state or local law.”
Federal agencies such as the U.S. Secret Service, the Federal Bureau of
Investigation and the U.S. Postal Inspection Service, investigate violations
of the Act. These cases are prosecuted by the U.S. Department of Justice.
Gramm-Leach-Bliley Act
According to this Act, the Federal Trade Commission — along with Federal Banking
Agencies, the National Credit Union Administration, the Treasury Department and
the Securities and Exchange Commission — must issue regulations ensuring that
financial institutions protect the privacy of consumers’ personal financial
information.
The Act requires financial institutions to inform customers of their privacy
policies at least annually. Before disclosing any personal financial information
to a third party, financial institutions must notify the consumer and provide an
opportunity for the individual to opt out of such disclosure.
Your Credit Rights
Under the Fair Credit Reporting Act and the Fair and Accurate Credit Transactions Act
of 2003, you have the right to require a credit reporting agency to do several things
to ensure that your credit rating is as accurate as possible.
A credit reporting agency must:
- Provide you with a complete credit report.
- Investigate, at your request, erroneous or missing information in your report.
The credit bureau must provide you with a written report of the investigation as
well as a revised copy of your credit report if the investigation resulted in changes.
- Keep your credit report information from anyone other
than legitimate users of the credit reporting agency.
- Remove detrimental credit information from your file after 7 years.
Bankruptcy information can be removed after 7 to 10 years.
When you receive your credit report from the credit reporting agencies,
make sure of the following.
- You understand the entries. Each reporting agency’s credit reports
contain information, such as how long an account has been tracked, the
highest amount charged, the account balance at the time of the report
and the type of account.
- Your credit report is accurate. Most frequent errors include incorrect
personal information, missing information and failing to correct damaging
information after problems are resolved.
- You take action to correct errors. Document your actions and follow up
until the problem is resolved.
- You inform creditors when errors are identified. The credit reporting
agency must investigate the items in question — usually within 30 days — unless
they consider the dispute to clearly lack merit.
- You retain your written account of errors or discrepancies in your file
if an investigation does not resolve your dispute to your satisfaction, you
have a right to add a statement to your credit report file contesting the accuracy
or completeness of the disputed information.
You may contact your state’s Attorney General office or local consumer
protection agency for information on your state’s identity theft laws.
Visit www.naag.org for a list of state offices.
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Basic Money Management
Basic Money Management
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