Barrister Bits by Debra A. Newby - July 2018 - Identity Theft

DEAR READERS: Do you have a legal question on your mind? If so, please email me at debra@newbylawoffice.com. Your name will remain confidential. This Q & A Legal Column is intended as a community service to discuss general legal principles and does not create an attorney-client relationship.

Dear Debra:

Last month the unthinkable happened. Some crook stole my “identity” and opened credit card accounts in my name. Before I knew it, the thief purchased over $12,000 in goods. What are my rights?

Signed: Fuming Frank

Dear Frank:

What a nightmare! Identity theft is truly a headache. You will consume extensive energy and time to get it all straightened out. First, realize that things will not smooth out overnight. It may take months, even longer, to resume some sense of normalcy in your financial affairs.

As a practical matter, the first step is for you to get organized, as you will need to create and track a lot of information. I suggest you pick up one of those spiral notebooks or create a separate file on your computer as the information and documents will procreate overnight when you are not looking, just like rabbits. Next, you must report the identity theft to the Federal Trade Commission (FTC). You can create an FTC Identity Theft Report by going on their website (www.identitytheft.gov). The FTC also has a handy checklist of your legal rights and options, which include your right:

1) to place a 90-day initial fraud alert on your credit report;

2) to get free copies of your credit report;

3) to get fraudulent information blocked from your credit report; and

4) to stop a debt collector from contacting you.

The law also places a limit on your responsibility for fraudulent debts, so rest assured that you will not be responsible for the $12,000 debt if the identity theft is reported timely. Generally, if a new credit card account is opened in your name without your permission, you are not responsible for any of the debt incurred. It is vital, absolutely vital, that you look at every credit card statement as time is of the essence in reporting any suspicious activity to the credit card company or bank. If the loss is reported within two days from when you learn about the loss, you may be responsible for up to $50. If the loss is reported more than two days, but less than 60 calendar days, you may be responsible for up to $500.00. If the loss is reported more than 60 calendar days after you receive your statement, you may be on the hook for the whole enchilada.

Identity Theft is prevalent, especially with the Equifax data breach which involved the stealing of personal data of some 448 million customers. Another practical tip (which may be too late for your current situation, Frank, but should be seriously considered by everyone else) is to freeze your credit report. It is very easy to do. One need only contact all three of the credit reporting agencies and provide vital and confidential information (and make sure you record the Username and PIN that will be generated, as you will need this to lift the freeze). Caution: If you are planning on a big purchase, like a home/mortgage or a vehicle, do not freeze your credit report until after the loan is secured. The credit freeze is free until June 30, 2018. After that, the credit reporting agencies may charge a fee (unless the deadline is extended again).

Contact all three reporting agencies:

• For Equifax, call 800-685-1111 or visit equifax.com

• For Experian, call 888-397-3742 or visit experian.com/freeze

• For TransUnion, call 800-888-4213 or visit transunion.com/credit-freeze.

You have every right to be mad and fuming, Frank. Identity Theft is serious stuff. Perhaps your misfortune will motivate others to pay closer attention to their credit card statements and even activate a credit freeze. “We boil at different degrees”, so observed Ralph Emerson. I do hope your water cools down shortly, Frank, and you can get on with your beautiful life.