Consumer complaint received 2020-09-11
Product: Payday loan, title loan, or personal loan — Personal line of credit
Issue: Improper use of your report — Credit inquiries on your report that you don't recognize
Company: Social Finance, Inc. (NY)

My complaint is that 2 accounts were opened online, not by me, and certainly without my permission, using my identity. I do not understand how these accounts could be opened first of all online, and second without the presence of the individual to verify a signature, an address, proof of residency, and proof of identity. 

On XX/XX/XXXX a loan with SOFI Lending was applied for in the amount of {$19000.00}. The loan was approved and funds transferred. All this came about when a letter dated XX/XX/XXXX, from XXXX XXXX   was sent to an old address I had not lived at for more than 20 years. In this letter, it stated they denied opening an account for me, an account I never applied for. The letter suggested I contact the credit agencies to see if there was anything affecting my credit report. On XX/XX/XXXX, I went online and reviewed my XXXX Credit report where there was a recent inquiry for SOFI Lending. Not knowing who this company even was, I contacted them that same day to get some information. I spoke with XXXX who confirmed that a loan was applied for using my name, date of birth, home address, home phone number, but a different email address. I immediately let them know I did not request any type of loan with their company and they should put my claim in as a fraud incident. She informed me that a block would be put on the account for review and that they would get back to me with a reference number. It was XXXX who also informed me that the whole loan transaction was completed online. 

On XX/XX/XXXX, I reported the identity theft to the FTC. I also added a freeze and security alerts with the three credit bureaus, XXXX, XXXX, and XXXX. I was able to make a police report in person at my home on XX/XX/XXXX with an Officer from my local police department. 

Not hearing back from XXXX XXXX, I called again on XX/XX/XXXX and spoke to XXXX. It was then when I requested the reference # to my fraud case. When I asked what type of identification is given to show proof of identity, I was told that they request any of the following : a copy of a driver 's license, passport, or income statement. When I asked what they received I was told that it was the underwriting department that had this information on file. I asked to speak to the underwriting department but I was told that I could not. XXXX also mentioned that since I reported the incident, they would do an investigation and remove the loan from my credit report. It was also at this time when I was asked if I wanted their Fraud Packet, in which I did request. 

After receiving their fraud packet and reading through it, it requested giving more personal information such as my driver 's license ID # and copies verifying my address, driver 's license, passport, or utility bills. Of course not wanting them to have any more of my personal information than they already had, I made my third phone call XX/XX/XXXX. I began asking questions about this fraud packet but the specialist could not answer my questions, it was then that I asked to speak with their manager XXXX. After being on hold for more time than needed, a specialist, XXXX, picked up the line. Frustrated at this point, I asked my questions again, only to get the same unsure answers. I did continue pressing for answers, like why did they not make a phone call to verify my information prior to lending this money like the website states in the Q & A section ( XXXX had my home phone number on file ). I was told that sometimes these processes are not necessary and that their policies change depending on the need. Thats poor policy right there. I also asked how could it be that not one letter or any confirmation of the loan was sent to my home address ( also on file ), I was told the whole transaction was opened and completed online. I found this very hard to believe and needed to know more. Not knowing what type of account the {$19000.00} was transferred into, I asked where and to what type of account XXXX transferred the funds to. Again, not being able to give me all the information I needed, I was able to get the name of the bank, XXXX, and the last 4 digits of the account number. 

I then contacted XXXX XXXX  and spoke to XXXX on XX/XX/XXXX, I discovered that they too open accounts online. When I asked some of the specifics about the account such as identification given to open the account, address on the account, again I was road blocked and could not get the information I needed to protect myself from the fraud situation taking place. I alerted them too that although the account was opened in my name and with my social security number, it was a fraud and I did not authorize or open an account with them. They opened a fraud case number and informed me that I would be receiving a letter from them within 30 days. Since I did not request an account to be opened with XXXX, Im hoping that after receiving their letter ( not knowing what it even is going to read ) I will be able to close this account. Frustrated and upset, I pressed XXXX XXXX for further information as to the address attached to the account, they would not give me the address but when I asked if it was even in the state I live in, I was told it was not. I'm not sure how SOFI Lending could so easily transfer funds to an account without verifying that the information on the account matched the information in their files. 

Simple steps could have been taken to alert me to this incident sooner. SOFI Lending has failed to do any : 1 ) Send a letter, perhaps with an ID pin to the address associated with the person who's social security number is being used for the account. The letter, once received with the ID pin, could be used to call the company to confirm that the letter was received at the proper address. 
2 ) Require additional information such as copies of utility bills, paystub, or insurance bills to again verify the address 3 ) Compare and verify the address and all information on the account funds are transferred to 4 ) Make a phone call like stated on their website in the Q & A section