How to Clear Fraud From Credit Reports

Credit fraud is a general term that refers to the unauthorized use of someone else's creditworthiness to purchase goods and services. It is estimated that losses from credit card fraud amount to as much as $500 million per year in the United States alone.

Two of the most common types of credit fraud are identity theft and credit card fraud. Identity theft occurs when your personal identity is assumed, without authority, to commit credit crimes. Credit card fraud occurs when unauthorized charges are made on your card accounts.

Instructions

1

Get copies of your credit reports from the three credit agencies--Experian, Equifax and TransUnion. Each agency will maintain a credit report for you.

2

Examine your report. Check for accounts that you never opened, charges from unfamiliar sources, or any strange charges on the statements. Review each account carefully. Check out inquiries about your credit. Verify information, such as your address, and ensure that it is accurate.

3

Document any suspected fraud. Once you have scrutinized your credit report, gather all of the documents pertaining to the suspected accounts. It is important that you have complete documentation on file for all of your legitimate transactions.

4

Notify the creditor. Once you believe that fraud exists, alert the creditor by telephone and in writing. Identify yourself as a victim and state that you would like to file a claim for fraud. Ask for their help and cooperation. Request that the activity be "frozen" on the suspected accounts.

You need to extend your full cooperation to the creditor so that you are not held responsible for the account. If it is credit card fraud, immediately advise your credit card company of the fraud discovery and cooperate with them to correct the anomaly. Most creditor companies will issue a replacement card with a different account number.

5

Notify the credit reporting agency. The Fair Credit Reporting Act requires that all of the reporting agencies provide all data to correct an error, if indeed an error is committed. You have to file a dispute on the identified fraud and support your claim with documents and information that will prove your contention.

6

Notify the police and the Federal Trade Commission about identity theft. If you suspect that someone is using your social security number or other information to get credit, report the matter to the authorities with jurisdiction in your area. A police report may be needed to convince the creditors that a fraud is being committed in your name. If you want enforcement, the Federal Trade Commission's identity theft division is the government agency that will initiate law enforcement action on identity theft cases.

7

Obtain an updated credit report. Get a fresh copy of your credit report a few months after you have made efforts to clean it up. If the disputed cases have disappeared, your credit report should reflect your true financial standing.