Most people imagine that identity theft involves a stranger stealing their information. But sometimes the person using your Social Security number, opening accounts in your name, or running up debt is someone you know. It may be a sibling, a parent, a spouse, or an adult child, and, unfortunately, it’s more common than you might think.
That makes the situation harder. You may feel pressure to protect a family member, avoid a criminal investigation, or keep the dispute private. Meanwhile, the debt, damaged credit, and collection calls are in your name.
But family relationships do not give the banks and credit bureaus a free pass to avoid liability for when fraudulent accounts are opened or reported to the credit reporting agencies. Maryland and federal law provide protections for people whose personal information has been misused, regardless of who’s responsible.
What Counts as Identity Theft by a Family Member?
Identity theft can involve a relative using your personal information without permission to open credit accounts, obtain loans, make purchases, or access existing financial accounts. A family member may already know your Social Security number, date of birth, or other information needed to impersonate you.
The question is: Did you open or authorize the account? If you didn’t, it’s not your debt.
Being married, sharing a home, or knowing your financial details does not authorize someone to open an account in your name. However, joint accounts, authorized-user arrangements, and valid powers of attorney can affect the legal analysis, so these relationships still need to be considered to determine if they affect the account in question.
If you’re facing collection demands or credit reporting for an account you never opened, do not assume you are liable simply because the account bears your name. An attorney handling identity theft cases in Maryland can help assess the circumstances and identify potential ways to resolve the problem, including through defense of collection lawsuits, disputes to the credit bureaus, or affirmative litigation.
What Does Maryland Law Say?
Maryland’s identity fraud law, under Criminal Law § 8-301, addresses the unauthorized use of another person’s identifying information in specified circumstances. Depending on the facts, a relative’s conduct may constitute a criminal offense. The fact that the person is family does not, by itself, excuse the conduct.
But aside from the criminal element, there may also be civil remedies when identity theft leads to inaccurate credit reporting, improper debt collection, or other violations of consumer protection laws.
The Fair Credit Reporting Act (FCRA) is a federal law that makes credit bureaus and the companies that report to them investigate disputes and correct or delete inaccurate information. They must also block the reporting of information that results from identity theft, no matter who committed the fraud.
Another federal law, the Fair Debt Collection Practices Act (FDCPA), indicates that a collector can’t misrepresent that you owe a debt you never incurred. If you didn’t open the account, you aren’t liable. Note: the FDCPA generally covers third-party debt collectors, not original creditors collecting their own accounts. Maryland’s Consumer Debt Collection Act, however, covers original creditors in addition to covering debt collectors.
Your remedies may ultimately depend on how creditors, bureaus, and collectors responded, rather than who stole your information.
What Should You Do if a Relative Steals Your Identity?
Importantly, you do not have to resolve the family dispute before challenging fraudulent accounts or taking action, and you also don’t need to press criminal charges to exercise your rights. If a creditor or credit bureau refuses to correct inaccurate information caused by identity theft, a wrongful credit reporting attorney in Maryland can help you understand your legal options.
Start by protecting your finances. Contact the affected banks and creditors, explain that the accounts or transactions are disputed, and ask what documentation they require. Change compromised passwords and consider freezing your credit to help prevent new accounts from being opened.
Create a paper trail. Obtain your credit reports, identify unfamiliar accounts, and keep copies of statements, correspondence, and dispute letters. You can report identity theft through IdentityTheft.gov and contact local law enforcement. Maryland law allows identity fraud victims to report the matter to a police agency in the jurisdiction where they live or where the crime occurred.
Do not ignore collection notices or lawsuits. Dispute fraudulent debts in writing and observe any court deadlines. If a relative has used your identity, evidence and prompt action can help distinguish your own obligations from accounts you never authorized. If a creditor or debt collector will not address the problem, a Maryland consumer protection attorney may help you assess your legal options.
How The Holland Law Firm Can Help
We have helped identity theft victims where the original thief is a spouse, grandchild, parent and sibling. We understand how difficult it can be when identity theft involves a family member. But the bottom line is that regardless of who stole your identity, banks, lenders, and credit reporting agencies have independent duties under the FDCPA and FCRA (and Maryland laws) not to report inaccurate information on your credit reports, and not to pursue you when the debt is not yours.
If creditors, debt collectors, or credit bureaus are refusing to address fraudulent accounts, the Holland Law Firm can help you by reviewing your circumstances and exploring potential consumer protection remedies. Contact Holland Law Firm to discuss your situation.