The Credit Report Fraud Alert Policy

Protect your credit from fraud.

All three major credit reporting agencies have a credit report fraud alert policy that allows a consumer to put a fraud alert on his credit report. Typically, fraud alerts are placed on credit reports of consumers who have been victims of identity theft or have lost or had important personal information stolen (such as credit cards, identification cards or a Social Security card. A credit report fraud alert requires a creditor to contact the consumer and verify certain information before a credit application can be processed and a credit report can be pulled by the creditor.

Identification

The Fair Credit Reporting Act provides specific rights to you if you're an identity theft victim. This is the law that allows you to place a fraud alert on your credit report. The law also requires creditors to follow specific procedures to issue credit in your name when you have a fraud alert on file.

Time Frame

If you believe you're a victim of identity theft, you can place an initial fraud alert on your credit report for a 90-day period. If you've filed a police report as an identity theft victim, a copy of the police report can be provided to each of the three credit agencies (TransUnion, Equifax and Experian) to extend the fraud alert to up to seven years.

Requirements

An initial or extended fraud alert can be placed on your credit report by phone or in writing. You have to contact each of the credit agencies separately to add a fraud alert to your credit report. Each agency requires proof of your identity to add the alert to your credit files. Proof may include providing your Social Security number. Extended fraud alerts require proof of identity theft, such as a police report or formal report filed with a state, county or federal agency.

Disadvantages

One of the effects of having a fraud alert is that it may cause a delay in receiving credit approval or denial. Since creditors are required to do due diligence in verifying that you're the one actually applying for credit, it takes extra time to verify this information.

Other Considerations

If you're a member of the military who's on active duty, a special alert referred to as an active-duty alert can be placed on your credit report files. An active-duty alert remains on file with each of the credit reporting agencies for a one-year period.

References

• Experian: Fraud