Identity Theft is the unauthorized use of your personal information by another to commit fraud. It is one of the fastest growing types of crime in the United States, and often ranks near the top in surveys when people are asked about their "worst fears." Without question, identity theft can turn your life into a waking nightmare.
There are numerous ways that a criminal can acquire your personal identification, including online activity, going through your trash, stealing mail, etc. Sometimes the thief is an acquaintance or even a family member. Once obtained, the information can be used to open credit cards, cellular phone accounts, checking accounts -- and even to purchase cars and homes.
Although there are relatively heavy state and federal criminal penalties for identity theft, prosecution is hindered by the difficulty in identifying the criminal(s) and the fact that the victim often does not reside in the jurisdiction where the crime is committed.
As civil trial lawyers, we cannot criminally prosecute those responsible for committing identity theft. But we can help you as a victim end the nightmare. We were one of the first law firms in South Carolina to litigate civil identity theft cases. We have assisted numerous clients. We have been extremely successful, having obtained one of the nation's highest jury verdicts against a creditor in an identity theft case in 2003.
As a victim of identity theft, there are a few things you should understand. First, you should know that you have absolutely no liability for accounts opened fraudulently in your name. None.
Unfortunately, when a fraudulent account goes unpaid, it is often sold or transferred for recovery to a debt collector. In fact, many victims first learn that a fraudulent account exists after being contacted by a debt collector.
Some collectors act appropriately when advised that the account is fraudulent. Unfortunately, some do not. We actively litigate against debt collectors who, after being provided evidence of fraud, continue to attempt to collect the debt, particularly when those collectors engage in harassment.
We can also assist you when, after you dispute a fraudulent account, a debt collector or creditor continues to report the account to credit reporting agencies. Such conduct is covered by the Fair Credit Reporting Act (FCRA), which requires persons who receive notice of a dispute to "conduct an investigation" with respect to the disputed information. Regrettably, a true "investigation" is not always undertaken before the creditor or collector verifies the false information as "correct" to the reporting agency. When this happens, the FCRA is violated, and you as a victim are entitled to bring a lawsuit against the creditor or collector for damages, penalties, and attorney's fees.
Credit Reporting cases are not just about identity theft, of course. Your credit report may simply contain false information because someone makes a reporting error. An account belonging to another person may be attributed to you. Or, your credit file may be mingled (or "mis-merged") with that of someone who has a similar name.
Whatever the cause of the error, the effect can be devastating. Your credit is critically important in the modern era. Lenders and insurance companies use credit histories to reduce risks associated with extending credit or offering insurance. Increasingly, credit histories are obtained and used in screening job applicants. Credit reporting agencies literally hold your financial life in their hands.
There are three major credit reporting agencies, Equifax, Experian, and Trans Union, and many smaller ones. According to their trade group (Associated Credit Bureaus) each one of the three major agencies maintains credit information on over 150 million consumers. These credit reporting agencies do not grant or deny credit, but simply sell reports to potential creditors.
Negative credit information may be used to justify the creditor's charging you a higher interest rate based on the perceived risk of extending the credit. In a sort of "vicious cycle," past negative credit forces you into higher interest rates for new credit. If you default on the new obligation, the track record of negative credit continues.
Under the FCRA, a credit reporting agency has a duty to adopt reasonable procedures to assure "maximum possible accuracy." Generally, inaccurate information can be divided into "obsolete" information and "incorrect" information. Obsolete information is simply information that is too old to be considered reliable. The FCRA prohibits the reporting of adverse information that is too old to be considered relevant. Incorrect information includes accounts falsely attributed to the consumer or errors in the reporting of accounts that belong to the consumer. Like collectors or creditors, credit reporting agencies have a duty under the FCRA to reinvestigate information that you dispute.
You should check your credit report periodically for errors. If you live in South Carolina (and in most other states) you may do so for free here. This is a free service that you may use once per year.
If you find errors on your report or feel that you have been the victim of identity theft, contact us today. We have helped many clients put an end to this nightmare. We can help you too.