Rosalie, a 20-year-old woman, just found out that her mother secretly carried a $6,000 balance on a credit card opened in Rosalie’s name when she was still a child.
The card finally closed two years ago after being paid off and inactive, but it was mismanaged for years, leaving her with a “very poor” FICO score.
She only discovered the problem after being denied on an apartment application and pulling her credit report. To her knowledge, the only account she had was her cellphone bill, which she paid on time.
Rosalie is certain her mother is responsible, since she’s the only person with access to all of the necessary information to open an account. Plus, Rosalie remembers her mother using a credit card for necessities when it would be highly unlikely her financial history would have made it possible for her to have credit.
Even though the account closed two years ago, Rosalie’s credit is suffering and she’s not sure what to do.
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When a family member commits identity theft
Rosalie’s mother, a single parent, was an alcoholic who had a hard time keeping a job and moved through a series of low-paying positions punctuated with long periods of unemployment. The pair were evicted several times and moved frequently.
Despite this hardship, Rosalie has found a good-paying job and plans to take night courses at the local community college. Her mother has since turned her life around, but she and Rosalie still have a strained relationship. And Rosalie finally has the job stability and money to move out.
But Rosalie needs to fix her credit to get an apartment — and she’s conflicted because doing so could lead to serious consequences for her mother and potentially end what relationship they have left.
While she may never know why her mother did what she did, some parents may justify their actions by telling themselves they’re doing it to provide for the child.
It’s not as uncommon as one might think.
One in 50 American children fall victim to identity theft, according to a 2021 study by Javelin Strategy [1]. And more than 70% are targeted by someone they know personally.
Read more: US car insurance costs have surged 50% from 2020 to 2024 — this simple 2-minute check could put hundreds back in your pocket
How to clear your name
When someone opens a credit card in your name, it’s a form of identity theft, even if a family member does it [2].
The first step is to call your credit card company as soon as possible and let them know your identity has been stolen. In cases where the credit card in question is still active, this will usually result in the card being frozen.
You’ll also need to place a fraud alert with the credit bureaus. A fraud alert means that before a business can issue credit in your name, it must first verify your identity. If you do this at one credit bureau, it will alert the others.
For even more robust protection, consider putting on a credit freeze. In this case, you’ll need to contact Experian, Equifax and Transunion individually. A freeze will cut access to your credit report so lenders are unlikely to open an account for someone who’s trying to use your name to do so.
A credit freeze “provides a more robust lockdown of your credit file than a fraud alert, which is appropriate for this level of identity theft,” according to LegalClarity.org [3].
Next, you’ll need to file an identity theft report with the Federal Trade Commission (FTC). You can start this process online at IdentityTheft.gov, which will help you create a personal recovery plan. For instance, it has templates for letters you can send to the credit bureaus to request that they remove fraudulent information from your report.
In addition to IdentityTheft.gov, you can find more information on identity theft at the Department of Justice’s Office for Victims of Crime, and learn more about your rights at the National Association of Attorneys General.
But to have fraudulent charges removed from her record, Rosalie will likely need to file a police report, and this could trigger a criminal investigation into her mother.
What if the stolen card is still active?
Rosalie’s card has already closed, but some people may discover a parent or family member currently using an active account in their name.
In that case, freezing your credit and disputing the charges is still critical, but you may also have additional options besides filing a police report:
- Contact the issuer directly. Some lenders will close or flag the account as fraudulent if you provide proof that you were a minor at the time of opening.
- Request that the creditor handle escalation. By disputing through the credit bureaus with your documentation, you can sometimes let them decide whether to involve law enforcement, which can ease family conflict.
- Seek nonprofit credit counseling or legal aid. They can guide you on navigating disputes while minimizing fallout with family.
Still, without a police report, it may be harder to remove the account from your file. That’s why victims often face a difficult choice between protecting their credit and protecting a relationship.
In the end, Rosalie has several clear options: dispute the account with the credit bureaus, place a fraud alert or freeze on her credit, and file a report with the FTC. If the debt isn’t removed through those steps, filing a police report may be the only way to fully clear her record. Whether or not she chooses to take that step is up to her, but the key is not to ignore the problem. The longer the account remains on her file, the harder it will be to recover financially.
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[1]. Javelin. "Child Identity Fraud: A Web of Deception and Loss"
[2]. Legal Clarity. "Family Member Opened a Credit Card in My Name: What to Do"
[3]. Javelin. "Child Identity Fraud: A Web of Deception and Loss"
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