Identity theft debt has a dedicated legal machine: police report, FTC affidavit, and a blocking demand the bureaus must honor. Paying even a dollar on a fraud account is the one unforgivable move.
What the Law Says
FCRA section 605B requires bureaus to block reporting of information resulting from identity theft within four business days of receiving an identity theft report, and furnishers notified of the fraud must stop reporting and may not sell the debt. California Penal Code section 530.8 entitles victims to the fraud account records.
How to Handle It, Step by Step
- File the FTC identity theft report and a police report immediately — they are the keys to everything else.
- Send the 605B blocking demand to each bureau with the reports attached.
- Notify the creditor and any collector in writing of the fraud; demand the account records under 530.8.
- Never make a payment or settlement offer on a fraud account — it muddies the fraud claim.
- Place a security freeze at all three bureaus while you clean up.
Common Questions
The collector says I must prove the fraud to them first. Do I?
The statutory process runs on your sworn reports, not their satisfaction — send the paperwork and their obligations attach whether they like it or not.
A family member opened the account in my name. Same process?
Legally yes, and the reports still work — the police report decision is personal, but without documentation the debt legally remains yours.
Get the free California Debt Settlement Kit — validation and cease letters, negotiation scripts, settlement calculators, lawsuit response guides, and AI prompts to customize every document to your facts. Free, no email wall, at debtsettlementkit.com. All five Justice Foundation kits are at justiceprompt.com. Educational use only — not legal advice.
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