Question:
Some of you may recall that I've posted before about DH's identity theft
problem, which appears to be ongoing--he is into the second year of problems
now. By far the worst hassle has come from a bank where someone using a fake
driver's license with their photo, a fake address and DH's name, DOB and SSN
opened an account and managed to run up about $1,500 in overdrafts and
service charges. The bank turned the account over to a collection agency,
which tracked the SSN to our correct address and commenced aggressive
collection efforts. Subsequently DH was able to get a letter from the bank
stating that they understood the account in question was fraudulent, which
satisfied that collection agency.
However, DH now has been contacted by a total of three additional agencies.
The latest attempt at collection has resulted in a 900 point drop in our
credit score, and it appears that no end is in sight. Does anyone know the
mechanism through which the multiple agencies are now trying to collect? Do
they buy lists of past due accounts somewhere? Should the bank be doing
something to stop this? Is it possible that the bank hopes that if harrassed
enough DH will pay the money, even though they have acknowledged he doesn't
owe it? I hope to hear from someone in the industry who might be able to
shed light on this tiresome and seemingly endless morass of hassle and
annoyance.
Answer:
Hm. I'd start out by talking to the collection agencies and finding
out where they got your name and address. Once you convince them
they're not getting anywhere bothering you (FAX them copies of the
bank's letter) and mention the possibility of a lawsuit for
harrassment, they should become quite cooperative, and be willing to
tell you what you want to know.
Once you know where the collection agencies are getting their
information, you can strike at the source and force them to
delete you. Dragoon the collection agencies to help you in
this in exchange for not suing them.
If it turns out the source is the bank - that it turned the
fradulant account over to collection agencies even though it
knew you were not responsible for the debt - then don't threat
them with a lawsuit. Go ahead and SUE them for more money than
they've got.
It would appear to be the only way to get their attention...
