Product: Credit reporting or other personal consumer reports

CFPB Complaint Fraudulent Credit Card Account XXXX XXXX XXXX XXXX XXXX  XXXX Complainant : XXXX XXXX ( victim of identity theft ) Account Details Account Name : XXXX XXXX XXXXXXXX XXXX ( Credit Card Account ) Account Number : XXXX Date Opened : XX/XX/XXXX Credit Limit : {$1100.00} Current Status : Charged off ( balance of {$1400.00} ) Status Last Updated : XX/XX/XXXX What Happened My name is XXXX XXXX, and I am writing to file a formal complaint about a credit card account with XXXX XXXX XXXX XXXX  that was compromised and used fraudulently. This account along with multiple other credit accounts in my name was taken over by unauthorized individuals ( identity thieves ) and incurred charges that I did not make or approve. I first discovered the fraudulent activity on this XXXX XXXX account in early XXXX and immediately took action to report it. On XX/XX/XXXX, I notified XXXX XXXX XXXXXXXX XXXX that this account had been compromised and was being used by fraudsters. I provided all necessary information and proof of the fraud, expecting the bank to investigate and help resolve this issue promptly. 
Unfortunately, XXXX XXXX XXXXXXXX XXXX has failed to take appropriate action. Despite my prompt notification and follow-ups, the bank did not properly investigate or remove the fraudulent charges from my account. Instead, the fraudulent debt was left to grow and was eventually charged off with a balance of {$1400.00}, which is now wrongly being attributed to me. The account remains on my credit reports as a derogatory item, and I have been subjected to debt collection attempts for this account that I have no responsibility for, given it was due to identity theft. 
Throughout this ordeal, I have maintained clear communication and provided evidence of fraud, yet XXXXXXXX XXXX responses ( or lack thereof ) have been inadequate and extremely frustrating. 
I trusted XXXX XXXX to handle my personal information securely and to act when fraud was reported, but they failed on multiple fronts, as detailed below. 
Issues and Failures by XXXX XXXX XXXXXXXX XXXX 1. Failure to Investigate After Fraud Notification ( XX/XX/XXXX ) : I alerted XXXX XXXX XXXX XXXX  on XX/XX/XXXX that this account had been compromised by identity thieves and was being used fraudulently. The bank failed to conduct a thorough investigation or remove the fraudulent charges after being notified. They did not follow up with me adequately nor did they resolve the dispute, leaving the fraudulent debt on the account. This lack of action directly violates the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ), which requires financial institutions to investigate and correct fraudulent information once they are made aware of it.

2. Unauthorized Credit Reporting & Debt Collection : Despite knowing the account activity was fraudulent, XXXX XXXX continued to report this account negatively to credit bureaus and even engaged in collection attempts for the fraudulent debt. They treated the debt as if it were legitimate, sending it to collections and damaging my credit in the process. This action is not only unethical, but it also violates the Fair Debt Collection Practices Act ( 15 U.S.C.

1692e & 1692f ), which prohibits misrepresenting a fraudulent debt as valid and engaging in unfair collection practices. By reporting a known fraudulent account and pursuing collection, XXXX XXXX allowed false information to hurt me financially. 
3. Failure to Verify Identity in Communications : On multiple occasions, XXXX XXXX representatives interacted with individuals regarding this account without properly verifying that persons identity. This likely enabled the identity thieves to obtain information or make changes on the account while impersonating me. For example, I suspect that the fraudsters were able to communicate with the bank or receive account information because XXXX XXXX did not implement adequate security verification. Failing to verify the identity of the person they were dealing with compounded the problem, as it allowed the fraud to continue unchecked and left me uninformed. This is a severe lapse in protocol and trust, as the bank should have ensured they were actually speaking with me ( the account holder ) before discussing or modifying anything related to the account. 
4. Negligence in Securing/Suspending the Account : Even after being informed that the account was compromised by fraud, XXXX XXXX did not promptly suspend, lock, or close the account to prevent further misuse. Proper procedure when fraud is reported is to freeze the account to stop additional fraudulent charges. XXXX XXXX inaction meant the fraudsters potentially continued to use the account or accumulate charges between my report date and the eventual charge-off. This negligence directly contributed to the growing balance and ongoing damage. It is unacceptable that the bank failed to take basic steps to secure the account once they were aware it was compromised, thereby allowing the situation to worsen. 
5. Significant Financial and Emotional Hardship Caused : As a result of Mission Lanes failures above, I have suffered severe financial and emotional hardship : Credit Damage & Higher Costs : The fraudulent charge-off on this account devastated my credit score. Consequently, I have faced higher interest rates on loans and credit that I needed ( for example, I was forced to accept a car loan at a much higher rate than I would have qualified for otherwise, due to the damaged credit from this incident ). I am effectively paying a fraud penalty in the form of increased costs on all future credit until this is resolved. 

Housing Denials : I was denied approval for housing ( an apartment rental ) because of the negative credit report from this fraudulent account. Losing housing opportunities due to a fraud I reported and that was ignored by the bank is deeply distressing and has put me in a precarious living situation. 

Financial Burden on Family : The fallout from this fraud has placed additional financial burdens on me, which in turn impacts my family obligations. I have had to divert funds to address credit issues and have less available for my familys needs and emergencies. This strain has affected our household stability and my ability to plan for my childrens future. 

Emotional Distress : Dealing with the aftermath of identity theft is extremely stressful, and XXXX XXXX inaction made it far worse. I have spent countless hours and endured sleepless nights worrying about this debt and my credit. The anxiety and stress caused by being harassed for a debt that isnt mine and having my financial reputation tarnished has been overwhelming. XXXX XXXX negligence in handling this matter has directly contributed to my anxiety, frustration, and emotional distress over the past year. 
Each of these points illustrates how XXXX XXXX XXXXXXXX XXXX failure to act responsibly and lawfully has hurt me gravely. I feel betrayed and abandoned by a financial institution that should have helped protect me as a fraud victim. Instead, their actions ( and inaction ) effectively punished me, the victim, as if I were the culprit. 
Violations of Consumer Protection Laws XXXX XXXX XXXX Banks handling of this situation has not only been unethical and negligent, but it also violates several consumer protection laws designed to protect people in my situation. 
I want to highlight the specific laws and regulations that XXXX XXXX has breached by failing to address the fraudulent account : Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s-2 : Under the FCRA, companies that furnish information to credit bureaus ( like XXXX XXXX ) must investigate disputes and correct or remove fraudulent information after being notified. XXXX XXXX failure to investigate my fraud claim and remove the fraudulent account from my credit reports is a direct violation of this provision. They continued to report information they knew ( or should have known ) was the result of identity theft, which FCRA strictly prohibits. 

Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692e & 1692f : The FDCPA prohibits debt collectors ( and by extension, creditors when collecting their own debts ) from using false or misleading representations and from engaging in unfair practices in the collection of debts. By attempting to collect a debt stemming from identity theft and misrepresenting this fraudulent account as a legitimate debt I owe, XXXX XXXX ( and any collectors they employed ) violated Section 1692e ( which forbids misrepresentation of the character or amount of a debt ). Furthermore, continuing collection and negative credit reporting on a debt they know is fraudulent is an unfair practice, violating Section 1692f. In short, it is unlawful to pursue a victim of identity theft for payment on an account that the victim did not authorize. 

Truth in Lending Act ( TILA ) 15 U.S.C. 1643 : The TILA sets limits on a credit card holders liability for unauthorized use of a credit card. Under TILA, my liability for fraudulent credit card charges is limited to {$50.00} at most, and often {$0.00} if the fraud is reported promptly, as it was in this case. XXXX XXXX attempt to hold me responsible for the entire {$1400.00} balance ( or any amount beyond the small TILA limit ) is unlawful. By law, I can not be forced to pay for charges I did not make or authorize, and the bank should have absolved me of this fraudulent debt as soon as I reported the identity theft. 

California Identity Theft Act Cal. Civil Code 1798.92 ( et seq. ) : I am a resident of California, and our state law provides additional protections for identity theft victims. Under the California Identity Theft Act, once a victim provides written notice and documentation of identity theft to a creditor, that creditor must investigate and remove the fraudulent accounts from the victims record within 30 days. I provided written notice of the fraud to XXXX XXXX ( including an identity theft affidavit and police report ) well over 30 days ago ( in fact, over a year ago ), yet XXXX XXXX has neither removed the fraudulent account nor stopped collection activities. This is a blatant violation of California Civil Code 1798.92-1798.93. XXXX XXXX non-compliance with this law exposes them to potential legal liability and penalties under California law, in addition to the federal laws mentioned above. 
In summary, XXXX XXXX XXXX Banks inaction and improper action in this matter violate my rights under federal law ( FCRA, FDCPA, TILA ) and state law ( California Identity Theft Act ). I am fully aware of my rights, and I expect the bank and any related debt collectors to also understand their legal obligations. I am bringing this to the attention of the Consumer Financial Protection Bureau because XXXX XXXX has failed to correct these issues despite ample opportunity and legal requirement to do so.