Short answer: contact the lender's fraud department and close the account, report the theft at IdentityTheft.gov to get an Identity Theft Report and recovery plan, and place a fraud alert or security freeze on your credit reports (CFPB). With that report, you can have the loan blocked from your credit reports: a credit bureau must block it within 4 business days after it gets what it needs (15 U.S.C. 1681c-2(a)).
Signs a loan was opened in your name
Accounts you do not recognize, charges for things you did not buy, or a new bill you did not expect can be signs of identity theft (FTC). For a loan, that can be an account on your credit report you never applied for, or a collector calling about it. To read your reports, see check your credit report.
What to do, in order
- Call the lender's security or fraud department and close the account (CFPB). Use the phone number from the lender's official website, not one from a text or email.
- Report it at IdentityTheft.gov (or by phone at 877-438-4338). You get an Identity Theft Report and a recovery plan (CFPB, FTC). The CFPB also says to report it to your local police (CFPB).
- Place a fraud alert with one of the three nationwide credit bureaus; it must tell the others (CFPB). An initial alert lasts at least 1 year; with an identity theft report you can get an extended alert for 7 years (15 U.S.C. 1681c-1(a), (b)). Or freeze your reports (CFPB).
- Ask each bureau to block the loan (see below) (15 U.S.C. 1681c-2).
- Send the lender your Identity Theft Report at the address it gives for such reports. A lender that gets one must not report that information to the bureaus unless it later knows or is told by you that the information is correct (15 U.S.C. 1681s-2(a)(6)(B)).
- Ask the lender in writing for the application and transaction records for the loan, at the address it gives. It must give you copies within 30 days of your request, subject to verifying your identity and your claim (15 U.S.C. 1681g(e)).
Blocking the loan from your credit report
Send each credit bureau: proof of your identity, a copy of your identity theft report, the items that came from the theft, and a statement that they are not from a transaction of yours (15 U.S.C. 1681c-2(a)). The bureau must then tell the lender about the block (1681c-2(b)). A bureau may refuse or undo a block if it was made in error, based on a material misrepresentation, or if you got goods, services or money from the transaction (1681c-2(c)).
Example dates (our count, weekends skipped; a federal holiday adds a day):
| Step | Rule | Example date |
|---|---|---|
| Bureau receives your block request with all four items | Start of the count | Monday, November 2 |
| Block in place, at the latest | 4 business days after receipt (1681c-2(a)) | Friday, November 6 |
| Lender sends application records, if it got your request the same date | 30 days after receipt (1681g(e)) | Wednesday, December 2 |
Watch for scams on top of the theft
Contact lenders, police and agencies through their official websites and phone numbers. Scammers pretend to be the FTC, the CFPB or a bank and claim someone used your information; the FTC never tells you to move your money to protect it (CFPB). See fake loan texts and calls and, if you already paid a scammer, advance fee loan scams.
If a lender or bureau will not fix it, you can file a complaint.
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.
Sources
- CFPB: What do I do if I am a victim of identity theft?
- FTC: What To Know About Identity Theft (September 2024)
- 15 U.S.C. 1681c-2: Block of information resulting from identity theft (FCRA section 605B)
- 15 U.S.C. 1681c-1: Identity theft prevention; fraud alerts and security freezes
- 15 U.S.C. 1681s-2: Responsibilities of furnishers of information to consumer reporting agencies
- 15 U.S.C. 1681g: Disclosures to consumers (including information available to identity theft victims)