A redditor recently asked how to recover after scoring a number on their parent’s credit score.
The original poster shared that during a break from college, he discovered a letter from a collection agency addressed to him. It referred to an unknown unpaid account.
He soon learned that his parents had taken out multiple credit cards in his name without helping cover household expenses. His parents had allegedly charged thousands of dollars in debt, leaving him unpaid, and now collection agencies were calling.
The Redditor wanted to know: What’s the best way to rebuild and protect credit in the wake of an experience like this?
“It’s underreported because the victim doesn’t want to put their family member at risk,” says Betz Hamilton.
Victims often feel a sharp sense of shame and embarrassment, he added.
The good news is that you can recover from family fraud, although it may take years. Here are five steps recommended by experts.
Betz Hamilton suggests that as soon as you realize your identity has been compromised. If you need to apply for a new credit account yourself, you can temporarily freeze it.
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In addition to freezing credit, filing a police report gives you evidence with creditors and credit bureaus that your identity has been stolen, making it easier to fight fraudulent charges.
This part can be really hard, but it’s an important step in proving you’ve been a victim, says John Alzimmer, a credit expert.
“You have to rat out your parents,” he says. “It requires some courage on the part of the victim.”
3. Pull your credit report and dispute fraudulent accounts
From there, you fight fake accounts with both credit bureaus and lenders.
Doing so would trigger an investigation, Alzheimer explained. Adding relevant evidence such as providing a police report will increase the chances that the fake account will be removed from your account – but does not guarantee a positive outcome.
In some cases, an investigation may determine that you are responsible. This is because there may be “credible connections” between your identity and the accounts, especially if they are used for household expenses at your address.
“All lenders have different policies and procedures in terms of investigating fraudulent claims,” he explained.
4. Get a secured credit card
Opening a secured credit card, paying current accounts on time and keeping your credit utilization below 30% can all help.
“It can be a long and frustrating process,” says Betz Hamilton.
5. Invest in your mental health
Betz Hamilton recommends taking care of your well-being during difficult times. “The emotional impact of family identity theft is often more profound than the financial impact.”
A mental health counselor, social worker or therapist can help with the recovery process.
“Having that support network of trusted others — friends and family who aren’t part of identity theft, or professionals you can trust — is essential,” he added.
Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial topics like identity theft, so we scoured the Reddit forums to get a Plus check. People post anonymously, so we can’t verify their individual experiences or situations.
