Federal Rights for Identity Theft Victims

If someone has used your personal information without your permission, you are not without legal recourse. Federal law provides identity theft victims with a specific set of rights designed to help them stop the damage and pursue compensation when the institutions involved fail to do their part.

Many victims are unaware of just how much protection is available to them on both the federal and state levels in Texas. Learning about how these federal and state laws work together is the first step toward taking control of the situation and holding the responsible parties liable.

What Are My Rights Under the Fair Credit Reporting Act?

The FCRA is the most important federal law for identity theft victims dealing with inaccurate credit reporting. It gives you the right to:

• Place a fraud alert on your credit file, which lasts one year and requires creditors to take additional steps to verify your identity before opening new accounts
• Request an extended fraud alert lasting seven years if you provide an identity theft report
• Place a security freeze on your credit file, which blocks new creditors from accessing your report entirely
• Dispute any fraudulent accounts or inaccurate information on your credit report, which the credit bureau must investigate within 30 days
• Request that the credit bureau block fraudulent information from your report under Section 605B, which requires action within four business days of receiving your identity theft report
• Obtain transaction records from businesses that opened accounts in your name under Section 609(e), which requires them to produce those records within 30 days

If a credit bureau fails to investigate a dispute or otherwise behaves improperly, that could constitute a violation of the FCRA and entitle you to damages.

How the Fair Credit Billing Act Protects Credit Card Fraud Victims

The FCBA applies specifically to unauthorized charges on credit card accounts. Under this law, your liability for fraudulent credit card charges is capped at $50. If you report the card as stolen before any unauthorized charges are made, your liability drops to zero.

The law also requires your card issuer to follow a specific process when you dispute a charge. You must send a written dispute within 60 days of the statement date, and the issuer must acknowledge your dispute within 30 days and resolve it within two billing cycles. During the investigation, the issuer cannot attempt to collect the disputed amount or report it as delinquent to the credit bureaus. If the issuer ignores these requirements, it may be liable for damages under federal law.

What the Electronic Fund Transfer Act Covers

The EFTA protects consumers from unauthorized transactions involving debit cards, ATM withdrawals, and other electronic fund transfers. Unlike credit card fraud, the timeline for reporting unauthorized debit transactions matters significantly when it comes to your financial exposure.

If you report the fraud within two business days, your liability is capped at $50. Between two and 60 days, the cap increases to $500. After 60 days, you could be responsible for the full amount. Once a dispute is filed, your bank is generally required to investigate within 10 business days and provide provisional credit while the investigation is underway. If the bank drags its feet or denies your claim without a proper investigation, that may be a violation of the EFTA.

How the Fair Debt Collection Practices Act Applies to Identity Theft

If identity theft results in unpaid accounts that are sent to collections, the FDCPA becomes relevant. Debt collectors are prohibited from using deceptive or abusive tactics to collect any debt, and they must stop collection activity on a disputed account until they have verified the debt.

If a collector continues pursuing you for a balance that resulted from fraud, particularly after you have provided documentation showing the debt is not yours, that conduct may violate the FDCPA. Victims in this situation can pursue actual damages, statutory damages of up to $1,000, and attorney fees.

What Additional Protections Does Texas Law Provide?

Beyond federal law, Texas has its own framework for addressing identity theft. The Texas Identity Theft Enforcement and Protection Act, codified in Chapter 521 of the Texas Business and Commerce Code, requires businesses that maintain personal information about Texas residents to take reasonable steps to protect that data. If a breach occurs, the business must notify affected consumers within 60 days.

Texas law also allows identity theft victims to obtain a court declaration confirming their status as a victim, which can be useful when dealing with creditors and government agencies. Additionally, identity theft is classified as a felony per Texas Penal Code § 32.51, with penalties that escalate based on the number of victims involved. Victims can also apply for an Identity Theft Passport through the Texas Attorney General’s office, which serves as official documentation when disputing fraudulent accounts.

What Steps Should I Take To Enforce My Federal Rights?

Knowing your rights is only useful if you take the steps necessary to enforce them. If you are dealing with identity theft, the following actions can help you put those rights into motion:

• File an identity theft report with the FTC at IdentityTheft.gov to generate your official recovery plan
• File a police report with your local law enforcement agency
• Contact each of the three major credit bureaus to place fraud alerts or freezes on your file
• Send written disputes to every credit bureau reporting fraudulent information, along with copies of your FTC report and police report
• Notify your bank and credit card issuers of any unauthorized transactions
• Request transaction records from any business where fraudulent accounts were opened in your name

Document every step of the process. If any institution fails to respond properly or ignores your dispute, that documentation becomes the foundation of a potential legal claim.

Contact Sharmin & Sharmin, P.A. To Schedule a Free Consultation

Dealing with identity theft on your own can feel like an uphill battle when the credit bureaus and financial institutions involved are not cooperating. An experienced Texas identity theft attorney with Sharmin & Sharmin, P.A. can step in on your behalf to handle the disputes in question and pursue legal action when your rights under federal law have been violated.

Contact us today for a free consultation at 1-844-Sharmin. We work on contingency, which means you only pay attorney’s fees if we successfully handle your claim.