Identity Theft YOUR LEGAL RIGHTS. Professor Katherine Porter UC Irvine School of Law

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1 Identity Theft YOUR LEGAL RIGHTS Professor Katherine Porter UC Irvine School of Law

2 First Steps Do not panic. Do NOT pay for help. Get an action plan. Visit a reliable government run site. Run by the Federal Trade Commission Print the plan

3 What is the situation? Current Victim Get best advice available Immediate treatment Stop harm Future Victim Consider options Watchful waiting Prevent harm

4 Who are you to the criminal? What was taken? Inventory your stuff. Purse v. stolen checkbook. Car v. cellphone. What could they learn from this? Inventory your identity. What are the largest risks to you? Inventory your key contacts. Identity theft creates much more than CREDIT risks.

5 Laws relating to identity theft Fair Credit Reporting Act. 15 U.S.C et seq. Fair and Accurate Credit Transactions Act of 2003 Dodd-Frank Act of 2010 Truth in Lending and other banking laws. 15 U.S.C. Identity Theft and Assumption Deterrence Act. 18 U.S.C Federal Privacy Laws HIPPA Gramm-Leach-Bliley State Identity Theft Laws. Cal. Civ. Code ;

6 Document the Theft Report the identity theft to local police. Get a copy of this report. You have the right to it. Keep this report for 10 years in your files. Report the identity theft report to all three credit bureaus. Tell any creditors and debt collectors about the identity theft if they contact you. You have the right to stop the debt collectors from contacting you. You have the right to get the creditors to stop reporting fraudulent accounts. Footer Text 6

7 Check Your Credit Report Get a free copy of your credit report from each agency. Experian, Equifax, Transunion If you already got free reports within the last 12 months, you can either: 1) Pay to get another copy (probably best) 2) Get a free copy after you get the fraud alert confirmation letter (slower)

8 Where to go Where NOT to go

9 Check Your Credit Report Get a free copy of your credit report from each agency. Experian, Equifax, Transunion Check your credit report again in three months, rotating among agencies for a 2-year period. Do not sign up for credit monitoring, unless it is being offered for free as a benefit by a merchant or other person who caused identity breach

10 What are you looking for? Lots easier to spot problematic things if you have seen your credit report before. Not a great time to learn how to read a report! Recent activity on report. Does not necessarily show up instantly. Bills that do not arrive as expected Unexpected credit cards or account statements Denials of credit for no apparent reason (e.g., for credit you did not apply for) Calls or letters about purchases you did not make Charges on your financial statements that you don't recognize Incorrect information on your credit reports - accounts or addresses you don't recognize or information that is inaccurate

11 Control Access to Credit Place a 90-day initial fraud alert on each credit file. You only need to contact 1 agency; required by law to contact others. Verify with letter from each. Consider placing a 7-year extended fraud alert on each credit file Companies must take extra steps to verify your identity to access credit report. Must contact each of 3 credit agencies. Free to place and remove for victims of identity theft. Credit freeze under California law Makes your credit report confidential Strongest protection but still exceptions for law enforcement Nominal cost

12 Limit Your Financial Loss A consumer is not responsible for any debt incurred on fraudulent new accounts opened in the consumer s name without their permission. BUT this can be difficult to remediate. Harder the longer the problem has continued, particularly if debt has not been paid and been referred to a collector. Under federal law, the amount a consumer has to pay for unauthorized use of a credit card is limited to $50. If a consumer s ATM or debit card is lost or stolen, limit your liability by reporting the loss immediately to their bank or credit union. Do not delay or your liability could be unlimited.

13 Report the theft Extremely important to limit harm not just to yourself, but to others. File a complaint with the FTC. Create an Identity Theft Affidavit. Make several copies. You ll need them! File report with your local police office. Be persistent. Know your rights. Get a copy of the police report.

14 Correct your Credit Close accounts Any unused ones to limit damage. Warn any companies with active accounts. Get new credit cards. Close fraudulent accounts. Keep letter you send them. Remove incorrect charges. Call creditors. May be difficult with companies other than credit card companies. Correct your credit report. Block fraudulent information. Much easier if you have Identity Theft Report. Incorrect information may reappear, even after removed once. All three agencies must be contact.

15 California Civil Code Retail sellers that intend to issue credit in person must match at least three categories of identifying information within the file maintained by the credit reporting agency. These categories may include: First and last name, month and date of birth, driver s license number, place of employment, current residence address, previous residence address, or social security number. The categories of information shall not include mother s maiden name.

16 Beyond Credit Medical identity theft Use HIPPA to get copies of your medical records You must fill out forms and pay fees at each provider Correct any mistakes and send your Identity Theft Report Notify your health insurer Criminal identity theft Contact law enforcement that arrested person. File a report of impersonation and document your identity.

17 Other places to check Taxes Social security card Government issued ids (drivers license, passport) Utilities Investment Accounts

18 Criminal Prosecution Under the Justice for All Act, a consumer has additional rights when the identity thief is criminally prosecuted in federal court. A consumer has a right to: Reasonable protection from the accused. Reasonable, accurate, and timely notice about any public court proceeding involving the crime. Be reasonably heard at any public proceeding in the district court involving the prosecution. Confer with the attorney for the government in the case. Full and timely restitution as provided in the law.

19 Visit the Federal Trade Commission s IdentityTheft.gov for more information

20 Report problems with companies not following your rights under Fair Credit Reporting Act and Truth in Lending Act.

21 Identity Theft YOUR LEGAL RIGHTS Professor Katherine Porter UC Irvine School of Law