Identity Theft - The Second Misconception

Through various conversations and research, it has become apparent to me that there are three major misconceptions about Identity Theft.

1. That it is just about your credit cards or your finances
2. That you can't be held liable for the debt racked up in your name by thieves
3. That you can take steps to 100% prevent the crime

Nothing could be further from the truth.

Identity Theft - The Second Misconception

"That you can't be held liable for the debt racked up in your name by thieves"

Forget about those "comfy" old rules you think you know about fraud being committed in your name. Those commercials where someone is in trouble or under duress and their confidant says "just imagine someone stole your (fill in the blank) check card" and all of sudden, things are peachy, are a not only a joke, they are dangerously misleading.

I encourage you to download the Federal Trade Commission's Free Report "Take Charge: Fighting Back Against Identity Theft". On page 19 of this publication, you will read firsthand why the second misconception is just that, a misconception. It reads:

"send your letter so that it reaches the creditor within 60 days. If an identity thief changes the address on your account and you didn’t receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill"

What this means is, you could wake up tomorrow owing $75,000 on a debt that you can prove is not yours but because you did not dispute within the required time frame, you 100% owe the money. The notion of zero liability is a joke.

Here are two great stories that will hopefully help you kill the second misconception:

1) "Getting there money back isn't always easy"

2) "Forget about those comfy old rules about fraud"

Our next post will cover the third misconception, "That you can take steps to 100% prevent the crime".