Loan or lease identity theft is the fraudulent opening or use of a loan, lease, or rental agreement in someone else's name. Because it is tied to larger financial commitments than a single card charge, the consequences can be serious: collection activity, denied credit, and inaccurate information on a credit report. It often surfaces late, after the damage has begun.
This form of identity theft takes several shapes:
Auto loans are one of the most common targets. Fraud can take the form of a car loan or lease opened with stolen information, or of inaccurate reporting tied to a real auto loan. Either way, a consumer can end up associated with debt they did not incur, or with errors that affect a credit report. Because auto loans involve significant sums, the impact on a credit profile can be large.
Unlike a stolen credit card, loan and lease identity theft can stay hidden for months. Many people do not learn of it until a collection notice arrives, a credit application is denied, or a credit report shows a loan they never requested. That delay is part of what makes early review of a credit report important.
A fraudulent loan or lease usually shows up as inaccurate information on a credit report. When it does, the Fair Credit Reporting Act provides a process to dispute it, and a legal route when a dispute does not resolve. This is where loan and lease identity theft connects to a consumer's rights under federal and New York credit reporting law.
Petroff Amshen LLP represents New York consumers harmed by loan and lease identity theft. The firm reviews the credit file, identifies fraudulent accounts and the inaccurate reporting they create, and, where the Fair Credit Reporting Act has been violated, takes legal action in state and federal courts. This is not credit repair. Petroff Amshen LLP is a New York law firm that litigates FCRA claims.
“Loan and lease identity theft is harder to spot and easier to exploit, and when a loan is taken out in someone's name the effect reaches well past a credit score. Acting early, and knowing the law applies, is what gives a person something to work with.”
Serge F. Petroff, Founding Partner, Petroff Amshen LLPAuthoritative sources: IdentityTheft.gov · AnnualCreditReport.com