Under the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), you have specific rights if you’re a victim of identity theft. If you notify a creditor in writing, provide a police report or FTC report, and supply identity verification, the creditor must investigate and block the fraudulent information from your credit file—usually within four business days.
If a creditor fails to comply, denies your identity theft claim without proper justification, or continues to report the fraudulent debt, they may be violating federal law. You have the right to sue them for damages, including actual damages and legal fees. Some cases may even result in punitive damages if the creditor acted willfully or maliciously.
You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) to report creditor misconduct. This may prompt an internal review and help resolve the dispute without litigation. Additionally, if the creditor has assigned the debt to a collector, you have the right to dispute the debt with the collection agency and demand validation.
In serious or complex cases, it’s best to seek the help of a consumer law attorney. Legal representation can help enforce your rights, remove damaging information from your credit report, and hold the creditor accountable for any violations of consumer protection laws.
