Someone Opened a Credit Card in My Name. What Now?

Discovering someone opened a credit card in your name can be stressful. Whether you find a suspicious account on your credit report or receive a call from a collections agency about a card you’ve never heard of, surprise can quickly turn into panic when you see the balance.

“It’s certainly devastating when you find out a credit card has been opened in your name and you didn’t do it,” says Robert Föehl, executive in residence for business law and ethics at Ohio University. “This is a common occurrence when dealing with identity theft situations.”

Here’s what you should do when you discover a rogue account in your name.

Keep in mind that just because you see a strange account on your credit report doesn’t mean you’re a victim of identity theft. Banks may incorrectly input a customer’s information and accidentally open a credit card in your name. Credit bureaus may also incorrectly merge the accounts of people with similar names. “The more common your last name is, the more likely this is to occur to you,” says Donald E. Petersen, a consumer rights attorney in Orlando, Florida.

So how can you discern whether a credit card account is the result of fraud or simply human error?

If you’re not receiving any bills, calls or letters from an account on your credit report, Petersen says that’s a strong indication that the problem is an error rather than fraud. If the Social Security number or address attached to the account isn’t yours, that also points to an error. “If the consumer lives in Colorado and you’re seeing addresses all over Florida, that can be some kind of mismerge and not a fraud account, too,” says Petersen.

Determining if the credit card account is the result of a mistake or fraud is important because it dictates how you’ll need to correct it.

To remove an erroneous credit card from your account, contact the card issuer and dispute the account. Be sure to reach out to the issuer’s fraud department directly to enforce your rights under the Fair Credit Reporting Act, or FCRA, which requires creditors to investigate dispute notices of fraudulent activity and other inaccuracies.

Ask the creditor what documents it needs to close the account. Petersen recommends that you request the credit card application used to create the fraudulent account because it could be used to identify the culprit.

Follow up your conversation with a dispute letter (here’s an example from the Federal Trade Commission) and any additional documentation required by the issuer to prove that you’re not the owner of the credit card. Send these documents via certified mail with return receipt service so you have a record of when your request was received.

While the issuer investigates the account, know that you’re not typically responsible for paying the balance of cards you didn’t open. The FTC’s website says that in the majority of states, “you’re not responsible for any debt incurred on fraudulent new accounts opened in your name without your permission.”

Next, contact one of the three credit bureaus to request it place a fraud alert on your file. A fraud alert notifies creditors that you may be a victim of identity theft and requires them to take extra steps to authorize new credit in your name.

The FCRA requires each of the credit bureaus to communicate with one another when a consumer requests a fraud alert. So, if you request a fraud alert from Experian, it’s required to contact Equifax and TransUnion so they can place alerts on your files.

It’s up to you whether you want to rely on the credit reporting agencies to do this, but Föehl encourages consumers to contact all three agencies themselves. “If you’re going to contact one, why not contact all three and provide the same information? You’re making triply sure that it actually happens.”

The initial alert lasts 90 days, but you can place an extended fraud alert on your file, which lasts seven years. Extended fraud alerts don’t cost anything to add or remove, and businesses can still access your file as long as they take extra steps to verify your identity.

For even more protection, you can choose to place a credit freeze on your file, which blocks anyone from accessing your credit report. Petersen advocates using a credit freeze, even when inaccurate information on your file is not the result of fraud.

Föehl agrees that in some cases, a freeze might be appropriate, though it’s not without its challenges and fees typically apply. “If you want to open up a new credit account, get a new credit card, get a loan for a car, you have to go through a process of lifting that freeze and then replacing that freeze later,” says Föehl. “And so it can be a cumbersome process. It might not be right for everybody, but it might be right for some, depending on their particular circumstances.”

Fees associated with credit freezes vary by state. The FTC says there aren’t any fees associated with credit freezes. Contact your state attorney general’s office for more information.

Föehl encourages consumers affected by fraudulent accounts to review their credit report to see if the problem goes beyond just one account. “Somebody has some identifying information of yours that they’re using to open up an account in your name. You might want to take a look at your credit report to see if there are any other suspicious items.”

The next step is to file an identity theft report with the FTC. This report can help prove you’re a victim of fraud to the credit bureaus and the credit issuers. “An identity theft report is sort of the basis for you to ensure that your name is cleared throughout the credit process,” says Föehl. Identity theft reports are also required for those consumers who want to place extended fraud alerts on their credit reports.

You can file an identity theft report through IdentityTheft.gov, the FTC’s website for identity theft victims. Print a copy of your completed identity theft report for your records, and make additional copies for the credit bureaus and credit issuer.

You may also want to submit a copy to your local police department.

Creditors are required to investigate fraudulent accounts and report necessary changes to credit reporting agencies. Still, you shouldn’t just rely on creditors to take care of removing the accounts.

While you can make the initial request by phone, it’s important to follow up conversations in writing with a dispute letter (here’s an example from the FTC’s website) and as many supporting documents as you can provide. Be sure you make copies of everything you submit and send the documents via certified mail with return receipt requested so you have a record of when the credit bureaus receive your letters.

Once the credit reporting agency receives your request, it must conduct a reinvestigation of the fraudulent accounts generally within 30 days of receipt and delete the account from your credit file if it’s deemed fraudulent.

After the credit reporting agency finishes its reinvestigation, you’ll receive a written notice within five business days, as well as a revised copy of your credit report. It’s important to review the report again to ensure that the account has been removed and that all existing activity is correct and accurate.

While you can’t completely guard against identity fraud and identity theft, you can take the following steps to reduce the likelihood of becoming a victim:

Ultimately, keeping tabs on your credit cards and credit reports is key to stopping fraud in its tracks. Otherwise, you’ll have to work harder to correct a problem that you don’t discover until later.