ITRC Solution 9
Refused a New Line of Credit
Many people find out they are victims of identity theft when they try to open an account. It often comes as a shock. This is one reason we encourage using the annual credit reports system to monitor your credit throughout the year.
If you are refused a new line of credit because you are a victim of identity theft, we recommend the following steps:
- Contact all three major credit reporting agencies to place a fraud alert on your credit reports. (Refer to ITRC Solution SN 03) You will want to obtain your complimentary copies of all three credit reports.
- Go through the reports and highlight all fraudulent accounts, and incorrect information. (See ITRC Fact Sheet FS 128 – How to Read your Credit Report.)
- Contact your local law enforcement to file a police report stating you are a victim of identity theft. Take your highlighted credit reports as evidence. You will need to obtain a copy of this police report to clear any fraudulent activity.
- Contact all the companies where fraudulent accounts have been opened, any collection agencies that are involved, as well as any company with a pending application. Please refer to ITRC Solution SN 01 – Clearing Fraudulent New Account and ITRC Solution SN 04 – Clearing Name with Collection Agencies. Please speak with the fraud department, not the customer service department.
- Ask the fraud department what is required to clear you from this account and to remove it off of your credit reports. (Please refer to ITRC Letter Form LF 100-1 or ITRC Letter Form LF 116) Let them know that you have a police report that you can send to them. Once the company has found it to be a fraudulent account, they must remove it from your credit reports.
ITRC Fact Sheet FS 100 - Financial Identity Theft: The Beginning Steps
ITRC Fact Sheet FS 106 – Organizing your Case
ITRC Fact Sheet FS 116 – Collection Agencies and Identity Theft
ITRC Solution SN 03 - Contacting the CRA’s to place a Fraud Alert
ITRC Solution SN 10 – Filing a Police Report