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PartIII: ID Theft: Where There's Help, Resolving Credit Problems
Identity Theft and Assumption Deterrence Act of 1998 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."
Note that under the Act, a name or SSN is considered a "means of identification." So is a
credit card number, cellular telephone electronic serial number or any other piece of
information that may be used alone or in conjunction with other information to identify a specific individual.
Where There's Help
The FTC collects complaints about identity theft from consumers who have been victimized.
Although the FTC does not have the authority to bring criminal cases, the Commission can help
victims of identity theft by providing information to assist them in resolving the financial and other
problems that can result from this crime. The FTC also refers victim complaints to other
appropriate government agencies and private organizations for further action.
If you've been a victim of identity theft, file a complaint with the FTC by contacting the FTC's
Identity Theft Hotline by telephone: toll-free 1-877-IDTHEFT (438-4338); TDD:
202-326-2502; by mail: Identity Theft Clearinghouse, Federal Trade Commission, 600
Pennsylvania Avenue, NW, Washington, DC 20580; or online.
Other agencies and organizations also are working to combat identity theft. If specific institutions
and companies are not being responsive to your questions and complaints, you also may want to
contact the government agencies with jurisdiction over those companies.
Federal Laws
The Federal government and numerous
states have passed laws that address the
problem of identity theft.
The Identity Theft and Assumption
Deterrence Act, enacted by Congress in
October 1998 (and codified, in part, at 18
U.S.C. § 1028) is the federal law directed at
identity theft.
Violations of the Act are investigated by
federal law enforcement agencies, including
the U.S. Secret Service, the FBI, the U.S.
Postal Inspection Service and SSA's Office
of the Inspector General. Federal identity
theft cases are prosecuted by the U.S.
Department of Justice.
In most instances, a conviction for identity theft carries a maximum penalty of 15 years
imprisonment, a fine and forfeiture of any personal property used or intended to be used to
commit the crime. The Act also directs the U.S. Sentencing Commission to review and amend
the federal sentencing guidelines to provide appropriate penalties for those persons convicted of
identity theft.
Schemes to commit identity theft or fraud also may involve violations of other statutes, such as
credit card fraud; computer fraud; mail fraud; wire fraud; financial institution fraud; or Social
Security fraud. Each of these federal offenses is a felony and carries substantial penalties - in
some cases, as high as 30 years in prison, fines and criminal forfeiture.
State Laws Many states have passed laws related to identity theft; others may be considering
such legislation. Where specific identity theft laws do not exist, the practices may be prohibited
under other laws. Contact your State Attorney General's office or local consumer protection
agency to find out whether your state has laws related to identity theft.
State laws that had been enacted at the time of this article are listed below:
- Alaska: 2000 Alaska Sess. Laws 65
- Arizona: Ariz. Rev. Stat. § 13-2008
- Arkansas: Ark. Code Ann. § 5-37-227
- California: Cal. Penal Code § 530.5
- Colorado: 2000 Colo. Legis. Serv. ch. 159 (May 19, 2000)
- Connecticut: 1999 Conn. Acts 99
- Delaware: 72 Del. Laws 297 (2000)
- Florida: Fla. Stat. Ann. § 817.568
- Georgia: Ga. Code Ann. § § 16-9-121
- Idaho: Idaho Code § 18-3126
- Illinois: 720 ILCS 5/16G
- Indiana: Ind.Code § 35-43-5-4 (2000)
- Iowa: Iowa Code § 715A.8
- Kansas: Kan. Stat. Ann. § 21-4018
- Kentucky: Ky. Rev. Stat. Ann. § 160, ch. 514 [PDF only]
- Louisiana: La. Rev. Stat. Ann. § 67.16
- Maine: Me. Rev. Stat. Ann. tit. 17-A, § 354-2A
- Maryland: Md. Ann. Code art. 27, § 231
- Massachusetts: Mass. Gen. Laws ch. 266, § 37E
- Minnesota: Minn. Stat. Ann. § 609.527
- Mississippi: Miss. Code Ann. § 97-19-85
- Missouri: Mo. Rev. Stat. § 570.223
- Nevada: Nev. Rev. State. § 205.465
- New Hampshire: N.H. Rev. Stat. Ann. § 638:26
- New Jersey: N.J. Stat. Ann. § 2C:21-17
- North Carolina: N.C. Gen. Stat. § 14-113.20
- North Dakota: N.D.C.C. § 12.1-23-11 [PDF only] click on 12.1
- Ohio: Ohio Rev. Code Ann. 2913.49
- Oklahoma: Okla. Stat. tit. 21, § 1533.1
- Oregon: Or. Rev. Stat. § 165.800
- Pennsylvania: Pa. Cons. Stat. Ann. § 4120
- Rhode Island: R.I. Gen. Laws § 11-49.1-1
- South Carolina: S.C. Code Ann. § 16-13-500, 501
- South Dakota: S.D. Codified Laws § 22-30A-3.1.
- Tennessee: TCA 39-14-150
- Texas: Tex. Penal Code § 32.51
- Utah: Utah Code Ann. § 76-6-1101-1104
- Virginia: VA. Code Ann. § 18.2-186.3
- Washington: Wash. Rev. Code § 9.35.020 (click on title 9, then chapter 35)
- West Virginia: W. Va. Code § 61-3-54
- Wisconsin: Wis. Stat. § 943.201
- Wyoming: Wyo. Stat. Ann. § 6-3-901
Resolving Credit Problems
Resolving credit problems resulting from identity theft can be time-consuming and frustrating.
The good news is that there are federal laws that establish procedures for correcting credit
report errors and billing errors, and for stopping debt collectors from contacting you about debts
you don't owe.
Here is a brief summary of your rights, and what to do to clear up credit problems that result
from identity theft.
Credit Reports
The Fair Credit Reporting Act (FCRA) establishes procedures for correcting mistakes on your
credit record and requires that your record be made available only for certain legitimate business
needs.
Under the FCRA, both the credit bureau and the organization that provided the information to
the credit bureau (the "information provider"), such as a bank or credit card company, are
responsible for correcting inaccurate or incomplete information in your report. To protect your
rights under the law, contact both the credit bureau and the information provider.
First, call the credit bureau and follow up in writing (See sample letter). Tell them what information you believe is
inaccurate. Include copies (NOT originals) of documents that support your position. In addition
to providing your complete name and address, your letter should clearly identify each item in
your report that you dispute, give the facts and explain why you dispute the information, and
request deletion or correction. You may want to enclose a copy of your report with circles
around the items in question. Your letter may look something like the sample below. Send your
letter by certified mail, and request a return receipt so you can document what the credit bureau
received and when. Keep copies of your dispute letter and enclosures.
Credit bureaus must investigate the items in question - usually within 30 days - unless they
consider your dispute frivolous. They also must forward all relevant data you provide about the
dispute to the information provider. After the information provider receives notice of a dispute
from the credit bureau, it must investigate, review all relevant information provided by the credit
bureau and report the results to the credit bureau. If the information provider finds the disputed
information to be inaccurate, it must notify any nationwide credit bureau that it reports to so that
the credit bureaus can correct this information in your file. Note that:
- Disputed information that cannot be verified must be deleted from your file.
- If your report contains erroneous information, the credit bureau must correct it.
- If an item is incomplete, the credit bureau must complete it. For example, if your file
shows that you have been late making payments, but fails to show that you are no longer
delinquent, the credit bureau must show that you're current.
- If your file shows an account that belongs to someone else, the credit bureau must delete
it.
When the investigation is complete, the credit bureau must give you the written results and a free
copy of your report if the dispute results in a change. If an item is changed or removed, the credit
bureau cannot put the disputed information back in your file unless the information provider
verifies its accuracy and completeness, and the credit bureau gives you a written notice that
includes the name, address and phone number of the information provider.
If you request, the credit bureau must send notices of corrections to anyone who received your
report in the past six months. Job applicants can have a corrected copy of their report sent to
anyone who received a copy during the past two years for employment purposes. If an
investigation does not resolve your dispute, ask the credit bureau to include your statement of the
dispute in your file and in future reports.
Second, in addition to writing to the credit bureau, tell the creditor or other information provider
in writing that you dispute an item. Again, include copies (NOT originals) of documents that
support your position. Many information providers specify an address for disputes. If the
information provider then reports the item to any credit bureau, it must include a notice of your
dispute. In addition, if you are correct - that is, if the disputed information is not accurate - the
information provider may not use it again.
Credit Cards
The Truth in Lending Act limits your liability for unauthorized credit card charges in most cases
to $50 per card. The Fair Credit Billing Act establishes procedures for resolving billing errors on
your credit card accounts.
The Act's settlement procedures apply to disputes about "billing errors." This includes fraudulent
charges on your accounts.
To take advantage of the law's consumer protections, you must:
- Write to the creditor at the address given for "billing inquiries," not the address for sending
your payments. Include your name, address, account number and a description of the
billing error, including the amount and date of the error. Your letter may look something
like this sample.
- Send your letter so that it reaches the creditor within 60 days after the first bill containing
the error was mailed to you. If the address on your account was changed by an identity
thief and you never received the bill, your dispute letter still must reach the creditor within
60 days of when the creditor would have mailed the bill. This is why it's so important to
keep track of your billing statements and immediately follow up when your bills don't
arrive on time.
Send your letter by certified mail, and request a return receipt. This will be your proof of the
date the creditor received the letter. Include copies (NOT originals) of sales slips or other
documents that support your position. Keep a copy of your dispute letter.
The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless
the problem has been resolved. The creditor must resolve the dispute within two billing cycles
(but not more than 90 days) after receiving your letter.
Debt Collectors
The Fair Debt Collection Practices Act prohibits debt collectors from using unfair or deceptive
practices to collect overdue bills that a creditor has forwarded for collection.
You can stop a debt collector from contacting you by writing a letter to the collection agency
telling them to stop. Once the debt collector receives your letter, the company may not contact
you again - with two exceptions: they can tell you there will be no further contact and they can
tell you that the debt collector or the creditor intends to take some specific action.
A collector also may not contact you if, within 30 days after you receive the written notice, you
send the collection agency a letter stating you do not owe the money. Although such a letter
should stop the debt collector's calls, it will not necessarily get rid of the debt itself, which may
still turn up on your credit report. In addition, a collector can renew collection activities if you are
sent proof of the debt. So, along with your letter stating you don't owe the money, include copies
of documents that support your position. If you're a victim of identity theft, including a copy
(NOT original) of the police report you filed may be particularly useful.
ATM Cards, Debit Cards and Electronic Fund Transfers
The Electronic Fund Transfer Act provides consumer protections for transactions involving an
ATM or debit card or other electronic way to debit or credit an account. It also limits your
liability for unauthorized electronic fund transfers.
It's important to report lost or stolen ATM and debit cards immediately because the amount you
can be held responsible for depends on how quickly you report the loss.
- If you report your ATM card lost or stolen within two business days of discovering the
loss or theft, your losses are limited to $50.
- If you report your ATM card lost or stolen after the two business days, but within 60
days after a statement showing an unauthorized electronic fund transfer, you can be liable
for up to $500 of what a thief withdraws.
- If you wait more than 60 days, you could lose all the money that was taken from your
account after the end of the 60 days and before you report your card missing.
The best way to protect yourself in the event of an error or fraudulent transaction is to call the
financial institution and follow up in writing - by certified letter, return receipt requested - so you
can prove when the institution received your letter. Keep a copy of the letter you send for your
records.
After notification about an error on your
statement, the institution generally has 10
business days to investigate. The financial
institution must tell you the results of its
investigation within three business days after
completing it and must correct an error
within one business day after determining
that the error has occurred. If the institution
needs more time, it may take up to 45 days
to complete the investigation - but only if the
money in dispute is returned to your account
and you are notified promptly of the credit.
At the end of the investigation, if no error
has been found, the institution may take the
money back if it sends you a written
explanation.
Note: VISA and MasterCard voluntarily have agreed to limit consumers' liability for
unauthorized use of their debit cards in most instances to $50 per card, no matter how much
time has elapsed since the discovery of the loss or theft of the card.
A Special Word About Lost or Stolen Checks
While no federal law limits your losses if someone steals your checks and
forges your signature, state laws protect you. Most states hold the bank
responsible for losses from a forged check. At the same time, however,
most states require you to take reasonable care of your account. For
example, you may be held responsible for the forgery if you fail to notify the
bank in a timely manner that a check was lost or stolen. Contact your state
banking or consumer protection agency for more information.
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Copyright © Federal Trade Commission. Reprinted with permission.
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