Correcting Identity Theft Entries on Your Credit Report

Overview

Identity theft entries on a credit report are unauthorized accounts, balances, or inquiries that a thief has placed on your file. Left uncorrected, they can lower your credit score, block loan approvals, raise interest rates, and complicate major life events like buying a home. This guide gives a step-by-step process, the documentation to collect, timelines to expect, and escalation options. It also links to related FinHelp.io resources to help you freeze access and build a strong dispute packet.

In my practice helping hundreds of clients recover from identity theft, the most effective outcomes come from quick documentation, filing an official identity-theft report, and sending targeted disputes to both credit bureaus and account furnishers.

Sources: Federal Trade Commission (FTC) on identity theft and the Consumer Financial Protection Bureau (CFPB) on disputes and consumer statements (see links below).

Step-by-step actions to correct identity-theft entries

1. Get current copies of your credit reports

• Use AnnualCreditReport.com to request free reports from Equifax, Experian and TransUnion (you are entitled to at least one free report per 12 months; additional free reports are available for suspected fraud). Review every section—personal information, accounts, inquiries, collections, and public records.

1. Identify and catalog suspicious items

• Make a list with: the account name, account number (if shown), date opened, balance, and why you believe it’s fraudulent. Flag hard inquiries you don’t recognize. Keep screenshots or PDF copies of the full credit reports as you found them.

1. File an identity-theft report and get a police report

• File an Identity Theft Report and recovery affidavit at the FTC: https://www.identitytheft.gov. The FTC report plus a local police report strengthens disputes and helps you get extended fraud protections.

1. Place a fraud alert or credit freeze

• Place at least an initial fraud alert through one bureau (it will notify the others). For victims of confirmed identity theft request an extended fraud alert and consider a credit freeze to block new accounts. See FinHelp’s guide to Credit Freeze for details on freezes vs alerts.

1. Build a dispute packet for each fraudulent item
   Include:

• A clear dispute letter identifying the item and why it’s fraudulent.
• A copy of the page(s) from your credit report that show the item.
• A copy of your FTC Identity Theft Report and any police report (include case number).
• Proof of identity (driver’s license or passport) and proof of address (utility bill or lease).
• Supporting documents that show the account wasn’t yours (e.g., correspondence from the creditor, statements, or account-closure notices).

For an expanded checklist and sample packet, see FinHelp’s How to Build a Dispute Packet for Credit Bureaus.

6. Send disputes to credit bureaus and furnishers

• Dispute with each credit bureau that lists the fraudulent item and also send a dispute directly to the creditor or collection agency (the furnisher). Furnishers are obligated to investigate disputes they receive. Use certified mail with return receipt when sending paper documents, or upload files via the bureau’s secure dispute portal. Keep copies of everything.

6. Expect and manage timelines

• Under the Fair Credit Reporting Act (FCRA) bureaus generally have 30 days to investigate a dispute after receiving it; that period can extend to 45 days if you provide additional relevant information during the initial investigation (CFPB guidance). The bureau must notify you of the results and provide a free copy of your report if it changed because of the dispute.

6. Review results and follow up

• If the bureau deletes or updates the item, confirm that the change is reflected across all three bureaus. If the item is corrected at one bureau but remains elsewhere, send copies of the updated report to the other bureaus and furnishers and request reinvestigation.

6. Add a consumer statement if disputes are unresolved

• If a disputed item remains and you want future lenders to know your perspective, add a short consumer statement to your file. FinHelp explains how to add a consumer statement to your credit report.

6. Escalate if needed

• If a bureau or furnisher fails to investigate or correct a clear identity-theft account, file a complaint with the CFPB (https://www.consumerfinance.gov/complaint/) and consider contacting your state attorney general. In some cases, consult a consumer law attorney about damages and statutory remedies under the FCRA.

How to write an effective dispute letter (practical template)

• Header: Your full name, address, phone, email, date.
• Subject line: “Credit report fraud dispute — identity theft” and list the bureau and report date.
• Identify the disputed item: Creditor name, account number or report line, date opened, balance.
• Explain: One short paragraph stating you did not open or authorize the account, cite your attached identity-theft affidavit/police report, and request deletion or correction.
• Attachments: List everything you’ve attached (FTC report, police report, ID, proof of address, statement).
• Close: “Please complete your investigation and provide a written result to me. Thank you.” Sign and keep a copy.

Mail by certified mail, return receipt requested, and keep the mailing receipt and delivery confirmation.

Documentation checklist (quick)

• FTC Identity Theft Report and Affidavit (download from identitytheft.gov)
• Police report with case number
• Copy of your government ID (driver’s license/passport)
• Proof of current address (utility bill, lease)
• Credit report pages showing the fraudulent items (highlighted)
• Statements or account records proving fraud (billing statements, collection notices)
• Copies of your dispute letters and records of phone calls (date, time, rep name)

Timelines, expected outcomes, and realistic expectations

• Investigations commonly close in 30 days; adding clear documentation speeds resolution. Some complex cases (multiple accounts, mixed credit files, or identity-stolen tax records) can take months.
• Bureaus will either delete the item, correct it to show it’s fraudulent, or reinvestigate if furnishers verify the information. If an item is removed, confirm it’s removed from all three bureaus and any lender that previously denied you.
• Disputes are free; you should not pay to correct fraud on your credit report.

Common pitfalls and how to avoid them

• Sending incomplete evidence: Attach the FTC report and police report when available.
• Relying on a single bureau: Always dispute with each bureau that lists the item and notify the furnisher.
• Forgetting to follow up: If you don’t get a result in writing, call and file a complaint with CFPB.
• Confusing an identity-theft dispute with a billing dispute: Identify theft means you didn’t open or authorize the account.

When to get professional help

• If multiple identity-theft accounts exist, or a lender has charged off accounts in error, a consumer attorney can advise on statutory damages under the FCRA. If recovery stalls, a certified credit repair or identity-recovery service (use with caution) can help assemble records; avoid pay-for-removal scams. In my experience, attorneys help when a bureau or furnisher repeatedly fails to correct provable fraud.

Useful authoritative links

• FTC: Identity Theft — https://www.ftc.gov/faq/consumer-protection/what-identity-theft
• FTC IdentityTheft.gov — https://www.identitytheft.gov
• CFPB: How to Dispute Errors on Your Credit Report — https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-401/
• CFPB Complaint Portal — https://www.consumerfinance.gov/complaint/
• AnnualCreditReport.com: Free credit reports — https://www.annualcreditreport.com

Final tips (short)

• Act fast: the sooner you document and dispute, the sooner lenders will see a corrected record.
• Keep a single organized folder (digital + paper) for each disputed item.
• Confirm changes across all three credit bureaus and your lenders.

Professional disclaimer: This article is educational and not legal or financial advice. For specific legal guidance about identity theft or potential damages, consult a qualified attorney or a certified consumer-credit professional.

Related FinHelp articles:

• How to Dispute Errors on Your Credit Report: https://finhelp.io/glossary/how-to-dispute-errors-on-your-credit-report/
• Credit Freeze: https://finhelp.io/glossary/credit-freeze/
• How to add a consumer statement to your credit report: https://finhelp.io/glossary/how-to-add-a-consumer-statement-to-your-credit-report/

(Article reviewed for accuracy as of 2025. Sources: FTC and CFPB.)