Identity fraud costs the UK more than £1bn every year – and that takes no account of the distress suffered by customers who discover their personal information has been stolen and used by thieves. While, initially, much of the £1bn bill is met by credit card companies and banks, they inevitably pass on the cost to consumers through charges. Tomorrow sees the launch of National Identity Fraud Prevention Week, an awareness drive aimed at helping people to protect themselves. Here, we show you how to check your file for any fraudulent activity, and shift any stains on your credit file:
Get a copy of your file
It takes an average of 500 days before people discover they have fallen victim to identify theft, according to research by the Victims of Fraud service run by credit reference agency Experian. But you can check your own credit file for unusual activity and stop it in its tracks.
You can apply for your credit record from one of the three credit reference agencies operating in the UK: Experian, Equifax and Callcredit. They compile information about you from a number of sources, including the electoral roll, county court judgments and financial institutions. They then present that information to lenders to help them to decide whether or not to give you credit. To get a copy of your file, send one of the companies your full name, date of birth, a list of your home addresses for the past six years, and a cheque for £2.
What information to check
The main part of the report will be your credit history. This lists your credit accounts, the date on which they were opened, the credit limit or loan amount, and whether you have missed any payments. You should check that these all match up with your own records. Owen Roberts, head of Callcredit Check, says: "Fraudsters typically open new accounts in your name, but this can often be hard to detect."
To help, you can sign up to an "alerts system" that notifies you if there are any changes to your credit report, such as new accounts being added, meaning that fraudulent activity can be identified and acted upon quickly. Account details stay on your report for six years after you have settled a loan or closed a credit card.
Bear in mind that any credit card you no longer use, but have not formally closed, will remain permanently unless you close it.
Agencies also record a credit search each time your credit report is looked at, such as when you apply for a loan or buy something with interest-free credit.
These searches stay on your report for up to two years; so beware of making multiple applications in a short period, as these will leave marks on your file that could affect your ability to get credit.
The impact of fraud on your file
It's worth taking time to wipe financial skeletons from your file, as banks and building societies are only willing to give the best rates for loans, credit cards and mortgages to those with pristine credit records. If you find any evidence of a mistake, or fraud, on your file, contact all three credit reference agencies immediately. If you have not already requested your credit file from each of them, do so now. Explain the situation and ask that an alert be placed in your file. The lender should be able to advise whether to notify the police.
You may also wish to consider paying for "protective registration" at £13.80 a year, run by the CIFAS, the UK's Fraud Prevention Service. It places a warning against your address to alert lenders carrying out a search to request further information such as proof of identification before granting credit.
Correcting mistakes
You have the right to dispute inaccurate information on your credit file, and to have any errors corrected. But you cannot get information removed just because you find it embarrassing.
If there is negative information on your file about people in your family with whom you have no financial connection, you can ask the agencies to "disassociate" you from them. If you want to dispute the accuracy of something on your file, contact the relevant creditor. If the information is found to be wrong, the creditor must update its internal records and notify the credit reference agencies it deals with, usually within 28 days. If you cannot resolve the matter, you should ask the credit reference agency to review your file.
If you are still not satisfied, you have the right to attach a 200-word "notice of correction" to your file, detailing the nature of your disagreement. This becomes part of your credit file, and is seen each time it is accessed.
Have you been a victim of fraud or have you discovered strange activity on your credit file? If so, write to us at Cash, 90 York Way, London, N1 1PJ
Credit file agencies
Experian, 0844 481
Equifax, 0844 335 0550
Callcredit, 0870 060 1414
