By Parviz Malakouti-Fitzgerald, Esq.
Most people need a mortgage to buy a home and a stolen credit identity can torpedo that dream
An issue that sometimes comes up side by side with immigration problems is an undocumented relative using a documented relative’s social security number, without permission.
Here’s a brief description of the problem, how it happens, and what the solutions are.
The Problem - “Stolen Credit Identity”
If anyone, including an undocumented relative has used your social security number for their own reasons, this can create a serious discrepancy in your credit report. The discrepancy can take the form of negative items on your credit report that were created by someone else using your social security number.
This credit discrepancy can cause you big problems, and result in you being denied for a mortgage, a car loan, or rental apartment. In the credit reporting world, technically this issue is called “stolen identity.”
The issue can present one of a few ways:
A complete stranger uses your social without your permission
A family member uses your social without your permission
In either case, you’ll have to take steps to get the negative items removed from the credit reporting bureau that is reporting them. There are three major credit reporting bureaus:
Equifax
Experian
Transunion
A stolen identity issue can sometimes just present with one credit bureau, and sometimes it can present with all three credit bureaus. Regardless, your action is needed in order to fix the issue.
How It Happens - Using Someone Else’s
Social Security Number
Unfortunately, this can be an issue that arises in some “mixed-immigration status” families in which someone may have DACA, a green card or U.S. citizenship and another family member may be undocumented. The undocumented family member sometimes uses the social security number of the documented family member.
Credit identities are oftentimes stolen in order to do one of the these things:
Get a credit card (Visa, Mastercard, American Express, etc.)
Open a cell phone line (Verizon, T-Mobile, AT&T, etc.)
Rent an apartment
to secure employment
Sample form I-9 which requires a social security number
The person who is “stealing” the credit identity, gets another person’s social security number. They apply for a credit card, or apartment or cell phone using that social security number that is not theirs.
Then that person defaults on the payment, is late, or incurs a charge-off or other negative credit item. Unfortunately this negative credit item then is reported by the major credit bureaus on the credit report of the person whose social security number was stolen.
The Solution - Demand Letters,
Dispute by Telephone & Lawsuit
There are a few ways to get credit bureaus to fix (i.e. remove) negative items on your credit report that show up because your social security number was stolen
Demand Letter
First, you can dispute accounts you believe are not yours by writing a demand letter to the credit bureau. You don’t necessarily need a lawyer to do this, but a lawyer can write the demand letter in a way that increases your leverage later on if you have to sue the credit bureau.
Luckily, some credit lawyers will assist you at no out-of-pocket cost to you. Leave your information here if you’d like us at Malakouti Law to refer you a great credit attorney who specializes in these cases.
Dispute by Telephone
Second, technically you may be able to dispute stolen identity credit items by telephone.
However, this is generally not as recommended as sending a demand letter because the written letter is much more compelling proof of when and how your dispute was made. Remember: you may badly need that proof later if you have to file a lawsuit, as we discuss below.
Lawsuit
Third, when a credit bureau is not taking your demand letter or telephone dispute seriously, sometimes you have to sue them. Plain and simple.
At Malakouti Law, we don’t handle such cases, but we are happy to refer you to excellent lawyers we know who handle these cases on a contingency basis.
Contingency basis means you don’t pay anything out of pocket. The lawyer gets paid if and when they are able to recover money from the credit bureaus for violating your rights.
You Have to take Action
To get your credit score back on track after someone's stolen your identity, you need to take action. Unfortunately, too many people sit on their hands, thinking the problem will go away on its own. It won't.
Leave your information here if you’d like to be connected to Malakouti Law's credit attorney colleagues who specialize in stolen credit identity, free of charge.
Each immigration and citizenship case is particular and you should consult with a qualified immigration and citizenship lawyer about your case before taking any steps. The Law Office of Parviz Malakouti does not guarantee the accuracy of information presented nor assume responsibility for actions taken in reliance of this information. The information in this page could become outdated. Attorney marketing.