Declartory Actions for ID Theft Victims

This is a question that a lot of ID theft victims wind up asking their attorneys. While the Fair Credit Reporting Act gives consumers the right to dispute their credit reports, and the Credit Bureaus are required to investigate those disputes, there aren’t always options if the Credit Bureaus reject the dispute. If an ID theft victim has not been denied credit or has bad credit that would effectively not be harmed, federal law provides few options. That said, a well-established common law claim allows ID theft victims to go to court and get a ruling that they do not owe any money to the creditor that is collecting and credit reporting the fraud account.

This claim, known as a “Declaratory Action” is available to victims of ID theft and allows the Courts to make a ruling, establishing their rights in relation to the fraudulent account. For ID Theft Victims who have had credit card accounts opened in their names, federal law provides help to these consumers. That law, the Truth In Lending Act, requires that when legal disputes arise over the validity of credit card account, the credit card company bears the burden of proving the validity of the account. This “burden shifting” statute makes the credit card companies come forward with their evidence, rather than forcing the consumer to disprove the validity of the account.

Once the law suit is over, a successful consumer will have leverage over the credit bureaus which can help clear the consumer’s credit report.

Lyngklip & Associates files declaratory actions for consumers whose identities have been stolen, and whose credit disputes have gone unanswered. Call our toll free number today for a free consultation. (888) 400-CREDit | (888) 400-2733.