You just learned you have a new credit card account by checking your credit or because a bill collector called you. Problem is that you don’t remember ever applying for it. You must find out what’s behind this new account and how it got there.
- Call the corresponding phone number listed with the account seen on your credit report.
- Begin the process for disputing the entire account.
- Get the name (and employee ID number) of every person you speak to and a transaction or reference number for every phone call.
- Speak to the fraud specialist for the issuer of this new account.
- Maybe you did apply for it. If you didn’t, find out if there are any charges on it.
- If the issue isn’t cleared up with one phone call, see what your options are to put a freeze on the account while things are being checked into.
- Get your free credit reports from TransUnion, Equifax and Experian to see how this new account appears.
- If you’re still in a quandary over this, put a fraud alert and security freeze on all three reports.
Taking Matters Further
- If it’s fraud, file an ID theft complaint with the Federal Trade Commission. You’ll get an identity theft affidavit online; immediately print it because it can be viewed only once through the FTC’s system.
- Next, bring the ID affidavit form to the police, plus other documents relevant to your case, and file a report. Don’t assume your problem is too trivial.
What if the credit card issuer is not helpful?
- Send a certified letter requesting they freeze or even close the account.
- Include with that letter a copy (not the originals) of the FTC affidavit and police report.
- The letter should request written proof of the authorization for opening this account.
- Another request: written statement absolving you from any responsibility towards charges on this mysterious account.
- Did you know that the creditor has 30 days or less to send you a written summary of its investigation?
If you’ve been assured that the account will be removed, don’t just take their word; follow up to make sure this was done.
You should not be responsible for any debts incurred by this fraudulent account. Any negative notes on your credit report, related to this account, should be wiped clean.
What if after all that, the account still remains open and you feel the case was not handled properly? File a complaint with the Consumer Financial Protection Bureau. Hopefully you won’t have to hire an attorney, though that’s also a next step.