Identity theft is a complicated matter in itself, only to be made even more problematic when the perpetrator is a friend or family member. It is not only a shocking matter when one finds out that someone close to them has done this, but it can also make one feel conflicted. How can you take legal action against a loved one?
This type of crime can severely damage your credit score, particularly if the person has opened multiple accounts in your name and accumulated massive debt. This is detrimental to your FICO score, meaning you will have sky-high interest rates on a car loan or mortgage – that’s assuming you’re even able to secure new credit after being victimized.
Take this into consideration when choosing whether to take legal action against your friend or relative. Credit companies will not launch an investigation into the identity theft or help your regain your financial well-being if you do not file a police report, so you’ll be on your own to mend a damaged credit score, which could take many years depending on how bad the damage is.
Filing a police report helps protect consumers against being responsible for the debt accumulated by the criminal.