Dd gets collections notice - mistaken identity

Parent Cafe
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<p>My 22 year old D received a letter today from a collections agency requesting payment of a Capitol One credit card debt. The letter had her correct name, and was sent to her dorm address. She has never had a card with Capitol One, or ever done business with them. I haven’t seen the letter yet, but she will bring it with her when she flies out tomorrow night.
The letter stipulates that she has 30 days to dispute the bill.</p>

<p>My first fear was identity theft. This is still a possibility, and we will have her check her credit report when she gets home to see if any new accounts were opened in her name. My suspicion, however, is that this is a case of mistaken identity. The letter stated that due to a settlement, the amount owed had been reduced to $500, from the original $800+. This language leads me to believe that the debt was probably sold off to the collector that is now coming after her, perhaps based on her previous address.
There was another student at her undergraduate school at the same time, with the same name. It’s possible that they may have traced the address from New Haven - it was just a PO Box #, -to her Cambridge dorm. Unfortunately, her name and spelling is not that common, so I can understand the mix up, but I am very worried that it will be difficult to clear up.
Has anyone had any experience with this? I know she will need to write a letter within 30 days of receipt and explain that she is not the ASAPsDD that they are looking for. :frowning: I’ve read horror stories about collection agencies hounding people and ruining their credit ratings. Any tips?</p>

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<p>At this point, she needs to get copies of her credit report ASAP from Equifax and TransUnion (I can’t find the link right now, but amid all the sites that offer you free reports with a membership to their service, you can get a bonafide copy from each once per year). That way, you can see if that account is the only one out there, or if the problem is worse than that. Otherwise, I don’t have experience in correcting the erroneous info.</p>

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<p>Thanks - we did that. They won’t let us in online, as we couldn’t get past the security questions-- questions about the mortgage she supposedly took out in 2002!!! This is very scary - either the credit report is very messed up, or someone has been using her identity. Both of the companies we tried asked questions about a mortgage. How could that even be possible, as she has no real credit history to back up such a loan?!
Beside the fact that she would have been 17 at the time. Crazy.
I’m tired. I hope this looks better in the morning.</p>

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<p>For the question about the mortgage it may be that they want you to say that no such loan was ever established. I know when I filled out the security questions I was asked about a mortgage from the 1980s, way before I had any credit history; there was an answer that no such loan had been established.</p>

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<p>Be very, very careful with this. I would caution against contacting this “collections agency” directly in case it is a scam, designed to get you to call, and provide someone with all the personal data they’re looking for. It’s easy to get a mailing list of students at colleges, and they’re prime targets for scams because most aren’t very savvy.</p>

<p>I suggest calling the 3 credit bureaus if you can’t get through online. </p>

<p>Remember, your D is now over 18, the credit bureaus will only talk with her, so sit nearby and take copious notes. </p>

<p>Should you discover fraud on her credit report, file a police report immediately, which will be required for removing the erroneous information. </p>

<p>Don’t panic. It very likely is a “phishing” attempt.</p>

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<p>Your d can also call Capital One. They should have the record of the account, which generally includes a social security number. If she calls Capital One directly, she may be able to get some information to see if the “collection agency” is really one that they use, and may be able to verify the date that the card was issued, etc. She may be able to convince Capital One that it’s not her - they’ll then pull the collection agency off (assuming that the claim is valid but against someone else).</p>

<p>Be certain, though, that she contacts Capital One from its own website & phone number, not from anything on the collections letter!</p>

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<p>I second Chedva’s suggestion calling the bank directly. Here is a couple of websites (just in case) that have some helpful information:</p>

<p><a href=“Annual Credit Report.com - Home Page”>Annual Credit Report.com - Home Page; check their FAQs</p>

<p>[State</a> Security Freeze Laws](<a href=“http://www.consumersunion.org/campaigns/learn_more/003484indiv.html]State”>http://www.consumersunion.org/campaigns/learn_more/003484indiv.html)</p>

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<p>Thanks, everyone. </p>

<p>justa mom - I actually was hoping this would be just a phishing attempt!!
I asked my D to scan and email the letter, and it does appear to be very real with a reputable collections company, unfortunately. Big company, solid address, specializing in this type of collections, member of the BBB and ACA.</p>

<p>chevda - I can hardly wait until she is home tomorrow so we can sit down and plan our strategy. She will need to do the calling, as you mentioned, but I can be there to coach-maybe even on the other line.
We will call Capital One, but I have heard that once accounts go to collections, banks will often no longer give out any information about them. Also, once she says that she is not the person who opened the account, they most likely will refuse to say anything due to confidentiality laws. But it’s worth a shot.</p>

<p>It looks like she may have to get the credit report info through the mail, though, as the security on the free site ( on two of the three) ask about mortgage, and even choosing “does not apply” won’t help. It;s possible if we pay to open a new account (TransUnion is only $10 for one report) instead of going to the free site that they will let her in. She needs to be here to open an account with them by law, though, and I hope it works. Otherwise, it could be weeks before we know if anything at Capital One was ever opened using her identity.</p>

<p>In the meantime, we will have to get a letter off to the collector asap disputing the claim. They have to provide verification from their client if she responds within the 30 day time period. At that point, we may know more both from the bank and from the people at TransUnion, et al.</p>

<p>My hope is that her credit report will not show any activity regarding Capital One, which should prove to the collector, and the bank, that they have the wrong person. Any time a new account is opened, it shows up on our credit reports.
The irony is that my husband and I have this expensive plan through American Express that provides us with detailed account info each quarter.
At our level of financial confusion, we need it. Yet, we have never had any identity problems. Here, my kid just starting out has ONE credit card that she shares with her dad, and she is the one with the problem. :(</p>

<p>Thanks for the links, BB…</p>

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<p>Here’s a link that didn’t exactly calm my nerves, but is does have good information we should all be aware of.</p>

<p>[Sleazy</a> new debt collector tactics - MSN Money](<a href=“http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/SleazyNewDebtCollectorTactics.aspx]Sleazy”>http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/SleazyNewDebtCollectorTactics.aspx)</p>

<p>

</p>

<p>This is pretty scary, as well.</p>

<p>[Debt</a> collectors hound the innocent in cases of mistaken identity - The Boston Globe](<a href=“http://www.boston.com/news/local/articles/2006/09/13/debt_collectors_hunt_the_innocent/?page=1]Debt”>http://www.boston.com/news/local/articles/2006/09/13/debt_collectors_hunt_the_innocent/?page=1)</p>

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<p>

Absolutely follow this advice.</p>

<p>I would add that if your D gets any response other than immediate removal of her name from the allegedly delinquent account that you send a cc of any written correspondence to your state attorney general’s office and to the appropriate department at the FTC (their website probably tells you whom to contact). If this is a deliberate fraud that someone is trying to perpetrate on your D, seeing that the AG’s office and the FTC are being alerted might get the fraudulent actor to abandon their effort with your D. Even if it’s not an evil scam, it might get the collection company to pay a little more attention to your D’s “account” and take more prompt corrective action just to get the state AG and the FTC off their own case.</p>

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<p>Good advice, nceph. If the collections agency continues to pursue this after they receive her dispute letter, I will definitely have her notify the FTC and AG and copy the agency, and the bank. I am thinking that the collections company just went “fishing” themselves for any address that popped up with her name on it. She has only lived there since September. For all we know, others with her name received the same letter!<br>
It’s maddening because we don’t know if it’s identity theft, or mistaken identity yet. The credit report should give us a better idea, though.</p>

<p>Her flight home is in the air now…yay!</p>

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<p>A.S.A.P., I wouldn’t waste even 15 seconds on the collection agency, even if it’s a real company. They have NO power to do anything, except send letters. You have no obligation to call them, write them, or do anything else. You don’t even have to open the letters, if any more show up you can just write “return to sender” on them. Or throw them away. The 30 day window is wholly their invention, and has no relevance to anything. It’s just an intimidation tactic. And BB membership is worthless in terms of a credentialing matter. </p>

<p>If you do though decide to make contact with the collection agency, do not call them - that will be a waste of time. Instead, whatever state they’re in, wherever it is they’re headquartered, look them up on the division of corporations or whatever it’s called in that particular state, get the president’s name or the top named exec, and write to that person directly, AND copy the letter to the AG. Don’t even wait for this to get worse - lead with a punch and copy everyone immediately.</p>

<p>If this is a matter of identity theft, consider having your daughter freeze her accounts with each of the three primary CRAs. And if Capital One becomes headachy, send to me a PM, I almost certainly have some contact names that will help.</p>

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<p>Wow, lts. You are truly amazing!</p>

<p>Thank you so much for chiming in here - your experience with various fraud cases certainly shows. I really like your style. :slight_smile: You are no doubt correct - why should we wait around biting our nails to see what they are going to do? I thought that the 30 day window was part of some statute.
I will encourage my daughter to use the “go to the top” strategy. At this point she’s willing to do anything we suggest. I think I’d like her to respond so that she doesn’t continue to get letters from them. We’ll send her letter to their president, copy the AG … should we also copy Capitol One and send it there as well? How about one of the CRA’s - maybe the one that she contacts to obtain her report?<br>
I really appreciate your advice in this. I feel better already!</p>

<p>If this turns out to be identity theft, of course our worries aren’t over. Do you know what would happen if she were to put a fraud alert on her CRs? Would that make it more difficult for her to use her own credit card?
Thanks for the offer about Capitol One. Geez, I hope it doesn’t come to that. Freezing the CR accounts would certainly help to stop any further damage. She may, but hey, we just want to be able to get in there and see what’s going on at this point. I’m so glad she’ll be home this week for the holiday.</p>

<p>Thanks for passing on your indomitable spirit! I needed that!</p>

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<p>A.S.A.P. freezing a credit report does cause some inconvenience. It will in no way stop your daughter from using her credit card, however, when she wants to apply for new credit, it can take some time to get the freeze lifted, apply for the desired credit, and then reinstate the freeze. But the benefit is that it will prevent anyone from applying for credit using her identity, because the person would need the assigned PIN number, etc. </p>

<p>As far as copying the CRA, she can, and ask them to post it to her credit file, but, I think I would wait to see if there’s anything on file at any of the CRAs first. You don’t want to raise a red flag if there is no need to do so, and, why advertise to future lenders that there was even a hint of a problem (though not her fault). It’s very difficult to get information off a file once it’s there, and ANY information is valuable to fraudsters. </p>

<p>You might want to threaten the collection agency with mail fraud if it should turn out that they are just randomly mailing people without any predication…depending on what the law says (and I’m guessing federal law applies here not state), it is probably illegal to send such a letter if there is no legitimate evidence of a debt that is owed…you might even want to turn it over to the office in the U.S. Post Office that investigates mail fraud…I have those contacts too if they are needed.</p>

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<p>If it turns out that the CR report shows no one has used her SS# to open an account with Capitol One, then it seems obvious to me that the collectors are acting on no real evidence. They are just going on the name, and the possibilty that my daughter lived in the same city as the debter at one point. I could see getting the PO involved…- if they persist in in coming after her.
We probably should give them a chance to just let it go after they get her letter, and until we can see the CR. I will look into the laws regarding mail fraud, so I’m ready.
Thank you! And congratulations on having your fundraiser approval! That’s pretty exciting stuff!</p>

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<p>A suggestion for everyone. Place a credit freeze with the TransUnion, Eaperian and Equifax. It virtually eliminates the possibility of identy theft since. Fees vary according to the state you reside in but is free in many. There is a small charge for temporarily unfreezing your credit report if you are applying for a loan or credit card, $5 for us.</p>

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<p>Update: What a mess!</p>

<p>It only took a couple of glances at my daughter’s supposed credit reports to know that a computer or input mix up had occurred.
There are about eight accounts listed that do not belong to her. Three are delinquent or charged off. The inquiries show that the people sending her the debt notice have seen her bogus report. The person she is mixed up with has the same name, and two previous addresses in her college town. I am convinced that the credit reporting companies have her file mixed up with the student at her college with her name who was a year ahead of her.
She will now have to write to each of the CRs and dispute each of the accounts.<br>
It’s a mystery to me how the credit bureaus could file my daughter’s account under this other person’s account when they have different social security numbers and different dates of birth. Why doesn’t their system flag this inconsistency??
All they have is a name and a common city. And a common college, and the college was named on the report. But that is hardly enough to prove a connection, much less one that is so important!<br>
We’re pretty positive that this is not identity theft, as the amounts charged are relatively small over a long period of time. The history looks very much like a person who didn’t handle their finances, not someone stealing a card and racking up as much as possible. Some of the accounts are in good standing.<br>
I am wondering what comes up when this other girl puts in her own SS# to see her credit report. Does she get the same report, with my daughter’s good account on it?<br>
The fact that this could happen really baffles me. The only “Alert” mentioned in the reports is a mismatch of addresses.
I guess we can chalk it up to sloppy data entry. But what a pain. I don’t know where she will find the time to fix this before she comes home again in December. :(</p>

<p>She did get the letter off to the collection agency telling them that they have the wrong person. She also filed a complaint with the attn. general in the state where the agency lives, and copied it in the letter. I hope this can get resoved before they send a summons or something…</p>