Quick Answer
You can remove fraudulent accounts from your credit report by reporting the identity theft, disputing the inaccurate information with the credit bureaus, and providing supporting documentation. Under the Fair Credit Reporting Act (FCRA), consumer reporting agencies must investigate eligible disputes and correct or remove inaccurate information when appropriate.
What Are Fraudulent Accounts on a Credit Report?
Fraudulent accounts are credit accounts opened in your name without your knowledge or permission. They are commonly the result of identity theft.
How Fraudulent Accounts Are Created
Fraudulent accounts are created when someone uses your personal information to open credit accounts in your name without your authorization.
Common Signs of Identity Theft
You may be a victim of identity theft if you notice: unexpected accounts or transactions, unfamiliar credit inquiries, unexpected collection notices, or incorrect personal information on your credit report.
Why Fraudulent Accounts Can Damage Your Credit
Fraudulent accounts can lower your credit score, alter your debt to income ratio and credit utilization ratio, and make it harder to qualify for loans, credit, or housing. In addition, if the fraudulent accounts have missed or late payments or go into collections, you can be unfairly flagged as a high-risk borrower.
How to Identify Fraudulent Accounts on Your Credit Report
You can identify fraudulent accounts by carefully reviewing your credit reports for information you do not recognize.
- Review Your Credit Reports for Unauthorized Accounts: Look for accounts you did not open or authorize.
- Look for Incorrect Personal Information: Review your name, address, Social Security number, and employment information for inaccuracies.
- Check for Unknown Inquiries and Addresses: Unauthorized credit inquiries or unfamiliar addresses may be signs of fraud.
Steps to Remove Fraudulent Accounts from Your Credit Report
You can remove fraudulent accounts by reporting the fraud and disputing the inaccurate information with the credit bureaus.
- Contact the Credit Bureaus: Notify the credit bureaus that your report contains fraudulent accounts.
- Report the Identity Theft: File an identity theft report and follow any required reporting procedures. Consider reporting to the local police as well, to document the events.
- Dispute Fraudulent Accounts in Writing: Explain which accounts are fraudulent and request their removal (in writing through certified mail is recommended).
- Provide Supporting Documentation: Include copies of documents that support your identity theft claim.
- Consult with a lawyer. For help preparing disputes or taking legal action when errors cause harm or remain despite disputes, a credit report error lawyer offers free consultations.
There are other protective steps you can take after discovering identity theft.
What Documents Can Help Prove an Account Is Fraudulent?
Copies of identity theft reports filed with the FTC and police, identification documents, and account records can help support your dispute.
- Identity Theft Reports and Affidavits: Identity theft reports and affidavits help document that the accounts were opened without your authorization.
- Government-Issued Identification: A copy of your government-issued identification helps verify your identity.
- Account Statements and Correspondence: Statements, letters, or other records may help demonstrate that the account is fraudulent.
What Happens After You Dispute a Fraudulent Account?
After you dispute a fraudulent account, the credit bureau investigates the claim and notifies you of the results.
Credit Bureau Investigation Requirements
Credit bureaus must investigate eligible disputes under the FCRA. Part of this process involves contacting the data furnishers about the disputed information.
How Long the Investigation May Take
Most investigations are completed within 30 days but may extend up to 45 days in some cases.
Reviewing the Investigation Results
Review the investigation results to confirm that any fraudulent information has been corrected or removed.
What If a Fraudulent Account Is Not Removed?
If a fraudulent account is not removed, you may have additional rights under the FCRA, including the right to seek legal assistance to correct errors, file a lawsuit, and obtain help with identity theft recovery.
Requesting Additional Review
You may submit additional evidence and request another investigation.
Monitoring for Reinserted Information
Continue monitoring your credit reports to ensure removed information does not reappear improperly.
Potential Violations of the Fair Credit Reporting Act
Failing to reasonably investigate or correct inaccurate information may violate the FCRA.
When Should You Contact a Consumer Protection Attorney?
You should consider contacting a consumer protection attorney if fraudulent accounts remain on your credit report or cause financial harm.
- Inadequate Investigations and Mishandled Disputes: If your dispute is ignored or mishandled, or you receive notice that the investigation “verified” the disputed information, you may need to escalate to legal action.
- Ongoing Credit Reporting Errors: Repeated reporting errors that return after being initially removed indicate that your rights have been violated.
- Financial Harm Caused by Fraudulent Accounts: Fraudulent accounts may result in denied credit, higher interest rates, or other financial losses. A personalized consultation with a lawyer can help clarify your legal standing and options.
How a Consumer Protection Lawyer Can Help
A consumer protection lawyer can help protect your rights, pursue available remedies under the FCRA, and assist with identity theft recovery.
- Investigating Credit Reporting Violations: An attorney can determine whether the credit bureau or information provider violated the FCRA.
- Holding Credit Bureaus and Furnishers Accountable: Legal action holds the companies that caused the errors accountable for their own inaccurate reporting.
- Seeking Compensation for Damages: If the FCRA was violated, you may be able to recover available damages.
Frequently Asked Questions
What should I do if I find an account on my credit report that I did not open?
Report the account to the credit bureaus, dispute the inaccurate information, and take steps to report the identity theft.
Do I need a police report to remove fraudulent accounts?
Not always. However, an identity theft report or other supporting documentation may strengthen your dispute and are generally recommended.
Can identity theft cause fraudulent accounts to appear on my credit report?
Yes. Identity theft is one of the most common causes of fraudulent accounts.
Will removing fraudulent accounts improve my credit score?
It may. Removing inaccurate negative information can improve your credit profile.
What happens if a credit bureau refuses to remove a fraudulent account?
You may request another review or consider speaking with a consumer protection attorney about your legal rights.
Can a fraudulent account reappear on my credit report after it is removed?
Yes, but reinserting previously deleted information that was known to be inaccurate is a continued violation of your rights under the FCRA.
How do I place a fraud alert or credit freeze on my credit file?
Contact one of the major credit bureaus to request a fraud alert or place a security freeze on your credit file.
Can I sue if a credit bureau fails to remove a fraudulent account?
Yes. While not every instance of a denied dispute warrants a lawsuit, generally, if a credit bureau violates the FCRA and you suffer harm, you have the right to pursue legal action. Failing to remove fraudulent accounts is a violation of the FCRA.