Identity Theft Wrecking Your Credit

Why Standard Disputes Fail & How the Law Can Help

You’ve done everything right: filed police reports, submitted FTC affidavits, and sent certified letters. Yet, fraudulent accounts opened without your knowledge or consent are still wrecking your credit. You are not alone, and you are not without powerful legal options.

This post is for the dedicated individuals who followed every piece of advice, only to hit a wall of automated denials from credit bureaus. We’re talking about identity theft victims whose credit is being destroyed by accounts they never opened, despite impeccable documentation.

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The Frustrating Reality of New Account Fraud

Consider the marketing executive who recently contacted our firm. For eight months, she battled the aftermath of identity theft. Someone used her Social Security number to open three credit card accounts. She never received bills or statements, discovering the fraud only when her mortgage broker flagged a 165-point drop in her credit score.

Her response was textbook:

• Filed a police report.
• Submitted an FTC Identity Theft Affidavit.
• Sent certified letters to all three credit bureaus.
• Included extensive documentation proving she never used the accounts.

The result? “The account has been verified as accurate.”

Does this sound familiar? If you’re poring over credit reports late at night, frustrated by repeated dispute failures, you’re experiencing a widespread problem. The Consumer Financial Protection Bureau’s (CFPB) 2024 Annual Report confirms a dramatic rise in identity theft and fraud-related complaints, with “incorrect information on your credit report” being the most common issue.

Thousands of individuals, just like you, are discovering that diligent efforts aren’t enough when credit bureaus fail to conduct meaningful investigations.

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Why the Standard Identity Theft Advice Falls Short for Existing Fraud

The Credit Freeze Misconception

A credit freeze is crucial preventive advice. It stops new fraudulent accounts from being opened. However, it offers no remedy for accounts already established in your name. If the fraudulent account predates your freeze, you’ve secured the barn after the horse has bolted. Freezes protect against future harm, they don’t clean up past damage.

The Flawed Credit Bureau Dispute Process

When you submit a dispute with compelling evidence—police reports, identity theft affidavits, and personal statements—here’s what often happens:

1. The credit bureau forwards your dispute to the “furnisher” (the bank or company reporting the account).
2. The furnisher performs a superficial internal check, often just matching a name and Social Security number.
3. The furnisher informs the bureau the account is “valid.”
4. The bureau closes your dispute, marking it “verified accurate.”

Crucially, no one at the bureau or furnisher reviews your affidavit, examines the police report, or seeks clarification. This “investigation” is often automated, a perfunctory process designed to satisfy minimal requirements, not to uncover fraud.

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What Actually Works: Leveraging Federal Law to Force Action

The good news is there’s a powerful legal pathway most victims and even credit bureaus won’t tell you about.

Bypassing the “Investigation” with the FCRA

Under 15 U.S.C. § 1681c-2(a) of the Fair Credit Reporting Act (FCRA), if you provide the credit bureaus with:

1. A written dispute identifying information resulting from identity theft, and
2. A police report or a sworn identity theft affidavit (obtainable from IdentityTheft.gov)

…the credit bureaus are legally required to block the fraudulent information from your report within four business days.

Let that sink in: No “investigation.” No approval from the creditor. No prolonged waiting game.

If they fail to block the fraudulent information, they may be violating federal law, and you may be entitled to significant damages.

Your Documentation is Your Legal Foundation

Every certified dispute letter, every confirmation number, every saved credit report, every meticulously kept spreadsheet of calls and notes—this isn’t just “doing everything right.” This is building a robust legal case.

In court, this documentation proves:

• You properly reported the identity theft.
• You provided compelling supporting evidence.
• The credit bureaus disregarded their legal obligations and continued to report false accounts.

This paper trail is your leverage, holding credit bureaus accountable under federal law.

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Your Next Steps: From Frustration to Legal Action

✅ Continue Documenting Everything

Maintain a comprehensive file (digital and physical) containing:

• All dispute letters (especially certified mail receipts).
• Identity theft reports (FTC affidavit and/or police report).
• Credit reports clearly showing the fraudulent accounts.
• Detailed notes from all communications with bureaus or creditors (dates, times, names, what was discussed).

❌ Stop Repeating Futile Disputes

If you’ve disputed the same fraudulent account two or three times and it remains on your report, further identical disputes are unlikely to yield different results. However, every failed dispute strengthens your legal claim, demonstrating the bureaus’ repeated failure to comply with the law.

🔍 Understand Your Legal Standing

You likely have a strong legal claim if:

• You properly reported identity theft.
• You provided necessary documentation (Identity Theft Affidavit, police report).
• The credit bureaus continued to report fraudulent accounts.
• You have suffered harm to your credit, finances, or reputation as a direct result.

💡 Why FCRA Attorneys Take These Cases on Contingency

Concerns about legal fees are common. However, most reputable FCRA attorneys operate on a contingency basis. This means:

• You pay nothing out of pocket.
• If your case is successful, federal law often mandates the credit bureaus pay your legal fees.
• Settlements typically include monetary compensation for the harm you’ve endured.

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Ready to Fight Back? Schedule Your Free Identity Theft Case Review

You’ve exhausted the conventional routes. Now, it’s time to leverage the law.

We offer free consultations to assess your specific situation, including:

• Your complete dispute history.
• Details of the fraudulent accounts.
• Your existing documentation.
• Whether the credit bureaus violated your rights under the FCRA.

Most consultations take just 15–20 minutes. We’ll provide a clear, honest assessment of your case and outline the path forward.

👉 Schedule Your Free Identity Theft Case Review Now

You’ve already done the hard part—gathering the evidence and fighting diligently. Let us use that evidence to hold credit bureaus accountable and finally rectify the damage caused by identity theft.