Finding an account on your credit report that you never opened is alarming — but the dispute process exists exactly for this situation. Before you act, it helps to understand how disputing fraudulent accounts works and what it can and cannot do.
First, the reassuring part: you are not responsible for debts created through identity theft. When you dispute a fraudulent account, you are telling the credit bureau and the company that reported it that the information is wrong and should be investigated. Neither federal law nor common sense makes you pay a thief’s bills.
Start by documenting everything. Pull your reports from all three bureaus, highlight every account, inquiry, or address you do not recognize, and keep copies. Write down dates, names, and confirmation numbers for every call and letter — this paper trail matters if a dispute drags on.
File a report at IdentityTheft.gov before you dispute. The Federal Trade Commission’s site generates a personal recovery plan and an official Identity Theft Report, which strengthens your disputes. Many creditors and bureaus take disputes more seriously when they include that report, and an extended fraud alert requires one.
Dispute with both the bureau and the company that furnished the information. You can dispute directly with each credit bureau, and you can also dispute directly with the creditor or debt collector reporting the account. Doing both creates two paths to correction.
Do not pay the fraudulent debt just to make it go away. Paying can muddy the record and make it look like you accepted responsibility. Dispute first, and let the investigation run its course.
Finally, keep expectations honest: the dispute process targets inaccurate or fraudulent information. It cannot remove accurate negative marks — late payments you actually made, for example, stay on your report for their normal reporting period.
Join the conversation
Load Facebook comments to read and reply using your Facebook account.