Identity theft is a devastating crime that can have severe consequences for victims. Along with the stress and trauma, it can also be costly if you do not know your legal rights. You must follow the proper protocol; otherwise, you may be on the hook for a large amount of money, and creditors and debt collectors may hound you for payments you do not owe.
You have rights when you are the victim of identity theft. You can stop debt collection efforts against you and keep derogatory information off your credit report. If certain parties do not respect your rights, you can even file a lawsuit against them. You can also file a lawsuit against the person who committed the identity theft and recover significant financial compensation.
You must contact an identity theft attorney if you suspect anyone has violated your rights. A seasoned attorney deeply understands the state’s laws and regulations surrounding identity theft and can guide you through every step of the legal proceedings. They can explain your rights, evaluate the strength of your case, and develop a strategic plan to help you achieve the best possible outcome.
It does not cost you anything to hire an identity theft lawyer, and their fees may even get paid as part of the proceeds of your lawsuit.
You Must Act Immediately After Identity Theft
When you realize that you have been the victim of identity theft, you cannot afford to wait to take action, even though you may be shocked and dismayed. You need to take immediate steps to keep the harm from getting worse. Once fraudsters have compromised your identity and information, they can run up large debts in your name.
Put an Immediate Freeze on Your Credit Reports
The first thing that you need to do is place a freeze on your credit report. This step will keep fraudsters from opening new accounts in your name. Potential creditors cannot access your credit report, meaning they will not have the ability to extend any new credit. They will see that there is a freeze, which will alert them to identity theft or fraud. All you need to do is contact one of the three major credit bureaus; the fraud alert will protect your overall credit.
Close All Fraudulent Accounts Immediately
Then, you should close out any accounts that hackers have opened in your name. If you do not take this step immediately, you may risk being liable for any charges. Unfortunately, you might later learn of even more accounts the fraudsters opened. Once you identify a fraudulent account, you must close it immediately.
Report the Identity Theft to the Government
You should also report the identity theft to the Federal Trade Commission. Although the FTC does not have jurisdiction to investigate your case, it will enter your information into a national database. Some businesses may request documentation that you have reported the identity theft to the FTC, so you should have extra copies readily available.
Contact the Police Immediately to Get a Report
You must contact the police department as soon as you realize you have been the victim of identity theft because the police report will be a crucial document. The police report is your way of getting on the record that you have been the victim of identity theft. A creditor may realize that you are not making a false claim of identity theft when a police officer has signed the report. You also have an official piece of documentation that you will rely on often as you deal with the aftermath of identity theft.
Your Rights As a Victim of Identity Theft in California
Under California law, you have certain legal rights when you are the victim of identity theft.
These rights include:
- The right to file a police report with your local police department or sheriff’s office, no matter the location of the identity theft
- The right to obtain copies of documents that pertain to fraudulent transactions that a hacker made in your name
- The right to have damaging information reported to a credit bureau and removed from your credit report
- The right to request one credit report per month for a year from the date that you filed the police report
- The right to freeze your credit at no cost to you
- The right to stop any debt collection efforts related to the identity theft (the debt collector must conduct their own investigation when you report that you were the victim of identity theft)
You Can File a Civil Lawsuit Against the Fraudster
You may also file a civil lawsuit against the perpetrator if the authorities catch them, and you will seek compensation for all of the damages you suffered concerning the identity theft. For example, you may have had actual financial losses from charges and debt that the fraudster opened in your name. You spent quite a bit of time dealing with the aftermath of the identity theft, and you have the right to compensation. Further, you may have suffered mental health harm from knowing that your identity was compromised and the stress of dealing with the situation.
The fact that the perpetrator may face criminal penalties should not keep you from filing a civil lawsuit against them. The criminal case is entirely different from the civil case, and if the perpetrator pleads guilty, you can use it as evidence in your civil case. You can still win your civil case, even if the court does not convict the perpetrator of a crime because there is a lower standard of proof in a civil lawsuit. You only need to prove your case by a preponderance of the evidence, which means that it is more likely than not that the facts in your case are valid. However, the prosecutor in a criminal trial must prove their case beyond a reasonable doubt.
Filing a Civil Lawsuit for a Data Breach
You can also file a lawsuit against any company that failed to protect your identity. For example, you may have been the victim of a data breach when a company was supposed to protect your personal information but failed to do so. Years ago, there was a massive data breach when the Experian credit bureau failed to protect sensitive information.
You can file a lawsuit under state law under several legal theories, including:
- Negligence
- Breach of privacy
- Breach of warranty
- Breach of fiduciary duty
You can recover the costs you incurred due to identity theft from the business that failed to protect your data, and you can receive damages for emotional distress. In addition, companies will also need to pay for your credit monitoring in the future. An attorney can file an individual or class action lawsuit because you are likely not the only victim whose information was not protected.
Filing a Lawsuit Under the California Identity Theft Act
One lawsuit you can file is when a creditor tries to collect from you when you are the victim of identity theft. California has an Identity Theft Act that protects victims when someone else has incurred debt or obligations in their name. The law recognizes that it is unfair for any party to pressure you to pay debts that were never yours in the first place.
If you provide a creditor or debt collector with notice that you were the victim of identity theft, they have a legal obligation to investigate. First, you will need to provide the creditor with a copy of the police report that states that you were the victim of identity theft. If the creditor continues to try to collect from you after 30 days, you can file a lawsuit directly against them. In other words, they must stop collection efforts once you establish that you were the victim of identity theft.
If you win this lawsuit against the creditor, you have the right to the following:
- Your actual economic losses
- Costs
- Attorney’s fees
- Potential punitive damages (depending on the extent of the creditor’s misconduct)
- A civil penalty of up to $30,000
Filing a Lawsuit for Illegal Debt Collection Under the FDCPA
You can also file a lawsuit based on a debt collector’s actions. The Fair Debt Collection Practices Act requires the debt collector to cease communications with you if you ask them. They also cannot use deceptive and manipulative practices concerning debt collection.
If you win your lawsuit, you may have the right to the following damages:
- Your actual economic losses
- Emotional distress and other effects of the debt collector’s conduct
- Attorney’s fees
- Statutory damages of $1,000
- Punitive damages (only under California state law and not federal law).
Here, your lawsuit will likely be an individual one instead of a class action case because you have suffered your own unique harm.
Filing a Lawsuit Against the Credit Bureau or a Creditor
Finally, you can sue a creditor or credit bureau under the Fair Credit Reporting Act. Suppose you report that you are the victim of identity theft. In that case, the credit reporting bureau must conduct a reasonable investigation and remove the derogatory information the creditor reports.
If they fail to do so, you can file a lawsuit. If you win, you can receive the following:
- The actual damages that you have suffered
- Statutory damages of up to $1000
- Attorney’s fees
- Potential punitive damages based on the extent of the defendant’s misconduct
Contact an Experienced Identity Theft Attorney in the Wake of Identity Theft
If you are having difficulties dealing with identity theft’s effects and aftermath, contact an experienced attorney. First, you may need help understanding your legal rights and how to handle the situation. Second, you may not understand the remedies available when someone else has committed misconduct – the crime’s perpetrator or anyone else dealing with you.
An experienced attorney can investigate the situation on your behalf. They may communicate with a credit bureau or a creditor who disrespects your legal rights.
Additionally, a lawyer can gather the necessary evidence to support your claim. Identity theft cases often involve complex financial transactions and digital evidence, which can be challenging for individuals to navigate independently. An identity theft attorney can work with forensic experts and investigators to identify the perpetrators, gather evidence, and build a strong case on your behalf.
Furthermore, hiring a lawyer can provide peace of mind during this stressful time. Dealing with the aftermath of identity theft can be overwhelming, and having a knowledgeable professional can alleviate some of the burden. Your attorney will handle all the legal aspects of your case, allowing you to focus on recovering from the impact of the theft and restoring your identity.
Hiring an Identity Theft Lawyer Costs You Nothing Out of Your Pocket
It does not cost you anything to hire an identity theft attorney. Most lawyers who handle identity theft cases work on a contingency basis, which means they only get paid a percentage of your settlement or jury award if they win your case. Sometimes, the law may even make the defendant responsible for paying your attorney’s fee, meaning you can keep all the money you recover in compensation. This arrangement is excellent news for victims of identity theft who may be hesitant to take legal action due to financial concerns. It means you can hire an experienced attorney without worrying about upfront costs or legal fees.
When you hire an identity theft lawyer to handle your identity theft case, they typically offer you a free initial consultation. During this consultation, the attorney will assess the details of your case and determine if you have a strong claim. They will also explain your case’s legal process and potential outcomes. This initial consultation is a valuable opportunity to ask questions and gather information about your rights and options.
If you have been a victim of identity theft in California, hiring an consumer protection lawyer is a wise decision. You can get legal representation without having to pay anything out of pocket. Do not hesitate to seek the help of a skilled attorney who can navigate the complex legal system and fight for your rights.