Creditors may deny an identity theft claim for several reasons, often citing lack of sufficient evidence or discrepancies in the documentation provided. If the fraud wasn’t reported promptly, or if the creditor believes you were involved or negligent, they might reject your request to remove fraudulent charges. Even when you file a valid report, creditors sometimes act in bad faith or fail to investigate thoroughly.
One common issue is the failure to submit a comprehensive identity theft report. To support your claim, you should provide a Federal Trade Commission (FTC) identity theft report, a police report, a letter disputing the fraudulent account, and proof of your identity. If any of these are missing or incomplete, your claim might be rejected on procedural grounds.
Sometimes, creditors argue that the account in question shows signs of your involvement—such as shared addresses, familiar email addresses, or consistent usage patterns. These are often false positives but can still lead to denials unless you present compelling evidence to the contrary. In other cases, internal systems may fail to flag the account as fraudulent due to clerical errors.
If your claim is denied, don’t give up. You can dispute the account again, request the creditor’s written explanation under the Fair Credit Reporting Act (FCRA), and submit additional evidence. You may also consider working with a consumer protection attorney to enforce your rights and compel the creditor to properly investigate your claim.
