Identity theft is a nightmare, but there are ways to restore your identity. Know what to do so that no time is wasted saving your credit rating and potential out-of-pocket costs resolving identity theft. Act fast. The sooner you notify the companies you do business with, like your bank and credit card companies, the better. The longer you wait, the more you risk. In some cases you may choose, or the company may suggest, to close your account and open a new one.
The Federal Trade Commission (FTC) oversees identity theft cases, and provides an Identity Theft Affidavit for you to complete when your identity has been stolen. While a copy of your Identity Theft Affidavit and police report are crucial components, it's best to keep copies of every document you've used to report your identity has been stolen for your Identity Theft Report. This might include everything from IRS correspondence stating a return was filed using your information, to a letter you receive in the mail letting you know a credit card (you didn't apply for) has been approved.
Numerous businesses provide just as many credit-reporting services throughout America; however, because of the number of banks, creditors, and other companies they work with, three of those credit-reporting agencies probably have become the most well known and respected. Even though they're all publicly traded and for-profit companies, each one must comply with regulations set forth by the Fair Credit Reporting Act (FCRA). Aside from providing you with free annual credit reports , you can also use these credit bureaus to put a freeze on your credit and provide fraud alerts.
The credit bureaus can place a credit freeze, or security freeze, which restricts access to your credit report. Credit freezes are useful in stopping current identity theft because they stop access to your credit report. Without that access, ID thieves can't open fraudulent accounts in your name; most creditors simply won't open a new account without seeing your credit report.
