Identity Theft Recovery: Step-by-Step Guide
Discovering you are an identity theft victim is stressful. Fraudulent accounts appear on your credit report, collectors call about debts you never incurred, and your credit score tanks. But California law provides strong protections. I help victims clear their records and pursue damages against creditors who fail to follow the law.
When someone opens an account in your name, the creditor had a duty to verify identity before issuing credit. If they failed to follow reasonable procedures, they may be liable for the resulting damage to you - not just obligated to remove the account, but potentially liable for actual and statutory damages.
Immediate Steps After Discovering Identity Theft
File a Police Report
File an identity theft report with your local police department or the California Highway Patrol. Under Penal Code 530.6, you have the right to file even if the crime occurred elsewhere. Get a copy of the report - creditors often require it.
File an FTC Identity Theft Report
Go to IdentityTheft.gov and complete the FTC's Identity Theft Report. This creates a recovery plan and generates an official affidavit that many creditors accept.
Place Fraud Alerts and Credit Freezes
Contact all three credit bureaus (Equifax, Experian, TransUnion) to place fraud alerts and consider freezing your credit. In California, credit freezes are free under Civil Code 1785.11.2.
Request Fraudulent Account Information
Under CC 1798.93, you have the right to demand that creditors provide copies of the application and transaction records for fraudulent accounts. This helps you understand the scope of the theft and builds evidence for potential claims.
Send Written Disputes to Creditors
Send a formal dispute letter to each creditor with fraudulent accounts. Include your police report, FTC affidavit, and demand they investigate and remove the account. Use certified mail, return receipt requested.
Dispute with Credit Bureaus
File disputes with all three credit bureaus for each fraudulent account. Under the FCRA, they must investigate within 30 days and remove unverifiable information.
Never make payments on accounts you did not open, even "just to make it go away." Paying can be treated as acknowledgment of the debt and may restart statutes of limitations. Instead, dispute in writing and demand removal.
California Law: Identity Theft Victim Rights
Civil Code Sections 1798.92-1798.97 - Identity Theft Rights
This is California's Identity Theft statute. Key provisions:
CC 1798.93: Creditors must provide you with copies of fraudulent account applications and records within 10 business days of requestCC 1798.93(c): Creditors must cease collection and correct their records within 10 business days of receiving a valid identity theft reportCC 1798.97: Civil liability for creditors who fail to comply, including actual damages and costs
Federal Fair Credit Reporting Act (FCRA) - 15 USC 1681
The FCRA provides additional protections:
Section 605B: Credit bureaus must block fraudulent information within 4 business days of receiving your identity theft reportSection 609(e): Businesses must provide transaction records to identity theft victimsSection 616-617: Statutory damages of $100-$1,000 per violation, plus actual damages and attorney's fees for willful violations
California Penal Code 530.6 - Right to File Police Report
You may file an identity theft police report in your jurisdiction even if:
- The crime occurred in another city or state
- You do not know where the crime occurred
- The identity thief's location is unknown
The police must take the report and provide you with a copy.
- Actual damages: Lost wages, emotional distress, costs to repair credit
- Statutory damages: $100-$1,000 per FCRA violation
- Punitive damages: For willful violations
- Attorney's fees: Prevailing plaintiffs recover attorney's fees under FCRA
FCRA claims must be brought within 2 years of discovering the violation (or 5 years from when it occurred, whichever is earlier). California state law claims have varying limitations. Act promptly and consult an attorney if creditors are not cooperating.
Evidence Checklist for Identity Theft Claims
Building a strong case requires documentation. Gather and preserve the following:
Demand Letter Templates
Use these templates to demand that creditors investigate and remove fraudulent accounts. Customize based on your situation and send via certified mail, return receipt requested.
Identity Theft Dispute Letter to Creditor
- Replace all bracketed text with your specific information
- Attach copies (not originals) of your documentation
- Do NOT include your full Social Security Number - last 4 digits only
- Keep a copy of everything you send
- Send via certified mail, return receipt requested
- Create a timeline tracking when you send each letter and all responses
Frequently Asked Questions
Under California Civil Code 1798.93, creditors must stop collection and correct their records within 10 business days of receiving your identity theft report. If they refuse, send a formal demand letter citing CC 1798.93 and the federal FCRA. Document everything.
If they still refuse, you may have claims for actual damages, statutory damages, and attorney's fees under both state and federal law. I handle cases where creditors ignore valid identity theft claims.
While not always legally required, a police report significantly strengthens your case. California Penal Code 530.6 allows you to file a report with your local police or with the CHP. Many creditors and credit bureaus require a police report before removing fraudulent accounts.
File the report as soon as you discover the theft, and get a copy for your records. You can also file an FTC Identity Theft Report at IdentityTheft.gov, which some creditors accept.
Yes. Under California CC 1798.93, if a creditor issues credit in your name without following reasonable verification procedures, they may be liable for actual damages including emotional distress, lost time, and costs to repair your credit.
The federal FCRA provides additional remedies including statutory damages of $100-$1,000 per violation and attorney's fees. If the creditor's conduct was willful, you may also recover punitive damages.
The "7-year rule" refers to how long negative information can remain on your credit report under the FCRA. However, this does NOT apply to fraudulent accounts.
Fraudulent accounts opened by identity thieves should be removed immediately once you dispute them with proper documentation. Credit bureaus must investigate within 30 days (or 45 if you provide additional info). If the account is verified as fraud, it must be deleted entirely - not just marked as disputed.
How I Handle Identity Theft Cases
I represent California identity theft victims against creditors and credit bureaus that fail to follow the law. Here is what I offer:
Services
- Case evaluation: Review your documentation, identify all fraudulent accounts, and assess potential claims
- Demand letter drafting: Professional demands to creditors citing California and federal law
- Credit bureau disputes: Draft and track disputes to all three bureaus
- Document requests: Demand application and transaction records under CC 1798.93
- Litigation: File suit against creditors and bureaus that refuse to comply with the law
- Damage recovery: Pursue actual damages, statutory damages, and attorney's fees
Fee Structure
| Service | Fee |
|---|---|
| Demand letter preparation | $450 flat fee |
| Dispute management and negotiation | $240/hour |
| FCRA litigation (fee-shifting cases) | 33-40% contingency |
The FCRA provides for attorney's fee recovery when you prevail against creditors or credit bureaus. This means in many cases, the defendant pays my fees if I win, making it economical to pursue even moderate claims.
Get Help Clearing Your Credit
If creditors are refusing to remove fraudulent accounts or you are being pursued for debts you never incurred, I can help you understand your rights and take action.
Or email: owner@terms.law