So, you've just realized that someone has stolen your identity and is racking up debt left and right. You want to put a stop to it, but you don't know what to do. Well keep reading, because in this article you will learn exactly what to do when you are a victim of identity theft. Once you have absorbed this information, act quickly, because the sooner you start fighting for your identity, the sooner you will win.

You will probably receive a phone call from a creditor stating that "you" just made a large purchase and they suspect fraud, or you open your credit card bill, as you do every month, and are amazed at some extra charges that show up. Call your credit card company immediately. Rarely will you be liable for charges over $50, and many credit card companies wave the first $50 in the case of fraud. In checking with your bank, you will usually be given a choice to close your account and open a new one, or some banks will put a "watch" on your account and you will have to log into your account and manually approve every charge and check before it is cleared. This usually goes on for a period of 30-60 days. The latter isn't the best choice as it is labor intensive, and your account isn't protected from fraud, as it would be if you simply closed it out and opened a new account.

After you have done all the initial damage control, the next thing to do when you realize that you are a victim of identity theft is to notify the credit bureaus. Report the situation to the three major credit reporting companies: Equifax, Experian, and TransUnion. This can be done online or in writing, and you must tell these companies that your identifying information has been stolen and is being used by another person fraudulently. Ask them to flag your file with a fraud alert, and ask that all creditors call you before extending credit in your name. A consumer statement will be put on your file, and it will alleviate your fear of bogus accounts being opened for about 3 months.

Due to provisions of the Fair Credit Reporting Act, you can only place an initial fraud alert for 90 days. The credit bureaus will then send you a notice displaying your rights as an identity theft victim. As soon as you receive this, write to each of the three credit bureaus to request two things; an extension of the fraud alert to seven years, and a free copy of your credit report. Remember to include an identity theft report when you send your letter in order to authorize the seven-year alert. Whenever you communicate with the credit companies you should refer to the number given to your credit report, and always use verified return receipt mail. Also, make sure you save all credit reports and related information for your records.

As soon as you get your three credit reports, carefully examine each one. Report all fraudulent and inaccurate information in writing to the credit bureaus, as well as to the credit issuers, following the instructions that are provided with the credit reports. As soon as you notify the credit bureaus about the fraudulent information, the bureau is required to strike that information from future reports. The bureau will also notify the credit grantor of the fraudulent account(s). If it isn't included in the report, ask the credit bureaus for the contact information of the credit grantors.

Also, tell the credit bureaus in writing that you want them to remove all inquiries that have been created due to fraudulent access. You should also ask the bureaus to contact anyone who has received your credit report in the last six months so they can be informed about the fraudulent and inaccurate information. Numerous inquiries can lower your credit score, so work diligently on getting those inquiries removed from your personal credit report.

Though these measures should get you back on track and protect your credit from fraudulent information, they may not completely stop it from happening again. Because of this, be sure to monitor your credit reports. There are many online services that will help you to do this. We recommend Experian Triple Advantage. Along with getting your credit report online with credit score, you also get 30 days of free credit monitoring service. With this service you can start the dispute process online! Often times, once you have started the process you will be able to obtain a second free report from the credit bureaus, and in many states you will be able to access your credit report more frequently. If you notice that the fraudulent information is still happening, notify the proper bureaus instantly. If the problem persists for very long, you may want to consider freezing your accounts for a while, if possible, to prevent any more damage.

Identity theft is an unfortunate event when it occurs, but you can fight back and get your life back quickly!

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Liz Roberts is a loan consultant with New Horizon Finance, specializing in bad credit, & has been providing consumers & business owners with financing since 1989. Join www.newhorizon.org/Info/ & get a free credit report & credit score and a Free Credit Repair Guide

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