Fair Credit Reporting Act News
Find out what has to be done to stop child identity theft and what remedies the Fair Credit Reporting Act offers.
Thursday, June 27, 2024 - An unsettling and expanding problem, child identity theft can have serious long-term effects on its young victims. Fraudsters can start credit accounts, take out loans, and run up debts in a child's name by getting personal information, such as Social Security numbers. The nature of this crime is that it frequently goes unreported for years until the youngster becomes an adult and requests for credit. Protecting your child's financial future requires knowing the Fair Credit Reporting Act (FCRA) remedial actions and taking preventative measures to stop child identity theft. Protecting your child's personal information is the first step in stopping identity theft. Share important information like their Social Security number with caution. Give only this information when it is required, such as when registering for school or filing taxes. Ask why your child's Social Security number is required and how it will be safeguarded if you are asked. Additionally helping to stop unwanted access to safe storage of personal documents and the destruction of any documentation holding sensitive information. While credit reporting organizations are obligated by the Fair Credit Reporting Act (FCRA) to correct disputed mistakes, many report having a stressful and unproductive time challenging false credit reports.
One more good preventive step is to keep an eye on your child's credit report. Though kids shouldn't usually have credit reports, seeing one can help you spot any illegal activities. All three of the big credit bureaus--Equifax, Experian, and TransUnion--offer free credit report requests. Should a report exist, it can mean that your child's data has been misused. To stop more misuse, you can freeze your child's credit report if you discover illegal conduct. Identity thieves find it more difficult to open new accounts when a credit freeze limits access to the credit report. Additionally crucial is teaching your youngster the value of safeguarding their data. Emphasize to them the need to keep their Social Security number, birthdate, and other private information private--even online. Urge them to protect the information they post on social media and to create strong, one-of-a-kind passwords for their internet accounts.
Should you believe your child has been the victim of identity theft, act right away. The first thing to do is to get your child's credit report frozen or to have a fraud alert placed on it. This will stop additional illicit activities. Submit a complaint at IdentityTheft.gov to the Federal Trade Commission (FTC). Developing a recovery plan and filing an identity theft report are two of the actions the FTC offers as resources and advice. You have some rights that can assist with the remediation process under the Fair Credit Reporting Act (FCRA). Within thirty days, the FCRA mandates that credit bureaus look into and fix any errors on your child's credit record. Credit bureaus allow you to immediately challenge bogus accounts and false information. Put with your disagreement a copy of the identity theft report, identification of your child, and any other pertinent supporting material. Contact any creditors engaged in fraudulent activities in addition to the credit bureaus. Alert them to the identity theft and ask that the phony accounts be closed. Give them a duplicate of any supporting paperwork as well as the identity theft report. Tracking the development of your case depends on keeping thorough records of all contacts and communication with creditors and credit bureaus.
