What to do About ID Theft if it Happens to You

You should call the three credit bureaus immediately in order to place a fraud alert on their credit report.

• Equifax (1-888-766-0008)
• Experian (1 888 397 3742)
• TransUnion (800 680-7289)

You should also call the creditors that have accounts used by the thief in order to notify them of the fraudulent behavior and to close the accounts.  Some of these accounts may be with collection agencies.  The victim should call them and let them know about the fraud that has taken place.  They may request that proof be sent to them, which may include a police report.

In an account takeover situation, where fraudulent activity was made on your existing account, call the creditors to notify them of the fraud that has taken place.  They will close the account and should be able to provide a list of the most recent transactions to see when the fraud occurred.

Call the FTC (1-877-ID-THEFT) in order to report the ID theft.

File a police report with the police station in order to report the ID Theft.  It is important that you keep all the documents that they might have to fill out as creditors and collection agencies may need them as proof.

Make sure to keep all police reporting records.  Companies make ask to see proof of what is being done to remedy the ID theft.  Keep the names of the people you speak with and take notes of what was discussed. 

Other sources for helpful information:

FTC (Federal Trade Commission) – http://www.ftc.gov

Experian – http://www.experian.com/credit-education/identity-fraud-index.html

TransUnion - http://www.transunion.com/corporate/personal/fraudIdentityTheft.page

Equifax - https://www.alerts.equifax.com/AutoFraud_Online/jsp/fraudAlert.jsp

www.annualcreditreport.com

Disputing a Bill

Before a bill is disputed, it is a good idea to double check your records to be certain that the bill is or is not valid.  Keep in mind that most disputes are accounts that were forgotten about, or payments that were thought to have been made.  It’s a good idea to check your records including bank statements or other documentation that may have been saved in order to show proof that it had been paid.

If you have proof that the bill has been paid, send the information to the company that is claiming the debt is owed.  They will research the account to determine whether or not the debt is valid.  If the company feels that the debt is still owed, they will try to contact you to resolve the outstanding balance.

If you cannot find proof that the bill has been paid, the company that is claiming the debt is owed should be made aware.  The account will likely be labeled as disputed. However, if there is no proof that the bill has been paid, you may still be held responsible for the debt, depending on the company’s record of the payment.  Keep in mind that companies may accept a payment plan in order to resolve the debt over time.

The most important thing to remember is to always keep records of who was paid, when it was paid, how much was paid in a safe place for easy reference. 

Credit Reporting

Updating your Credit Report

If an account is not accurately portrayed on your credit report, you can update it with the credit bureaus.  Keep in mind that it takes time for an account that has been paid off to show up as such on a credit report.  If the bill has been paid off for a long period of time and it is still not showing as paid in full on the credit report, contact the credit bureaus to notify them that the account has been paid off.  This could be done online, through a letter or by a phone call.

Updating your credit report may take some time.  If you need to verify with a lender that an account status on your credit report is outdated, you can obtain proof of final payment from the company where the bill was paid. Some places will provide a phone number to call and verify that the bill was paid in full.  You will need to request proof to show that the bill was paid in full since it is not showing up on the credit report yet as paid in full.  The company should be able to offer a process to obtain verification quickly.  This is usually done through a letter or by fax.

Building Your Credit

While building your credit does take time, the follow simple tips will help you work towards building a higher credit score. 

• Pay your bills on time.  This may seem basic but the better payment history that you have the better your score will be.
• If you have missed payments in the past, bring those current as soon as possible.
• Keep balances low on revolving credit accounts (credit cards, loans, etc).
• Don’t open accounts that you do not need.  Only keep those credit cards open that you use.  Don’t open a credit card at a department store just to get a deal.
• Keep in mind that collection accounts will show on your credit report for up to seven years.  This will show the account as paid in full after it has been paid.
• Remember that it is possible if you apply for credit it will show on your credit report and could possibly affect your score.

Medical Insurance Payment

What To Do IF You Think an Insurance Payment Should be Made

1. Gather some information
   Did you receive an Explanation of Benefits (EOB) letter?  This is a letter that is sent to you after the claim is filed by insurance.  It will let you know how much insurance will pay and how much you are responsible to pay.  You should receive an EOB for every claim that you file.
2. Confirm that the claim was filed
   Sometimes it is assumed that the hospital or office where you received your medical care is required to file the insurance claim for you.  This is not the case.  Sometimes the hospital will do it for you, but often times you are required to file the claim with your insurance company yourself.  Check with your medical provider to ask if the claim will be made on your behalf.
3. Check the date the insurance claim was filed
   Most insurance companies have a timely filing period.  This means that if you have a medical bill, you only have a certain amount of time to file the claim.  On average, most l timely filing periods are one year, but they can be as little as 90 days.  If you are “past timely filing” your insurance will likely not make a payment.   If your medical provider did not make the claim, you will need to speak with the medical provider about make payments on your own.  If your medical provider did make the claim but it was past timely filing, you will need to speak with your medical provider about options for account resolution.
4. Confirm that you have paid your deductable
   Sometimes we forget that we are required to pay a deductable before their insurance will make their payment.  If the bill is under $300, it may be an indication that the balance remaining is from a deductable that you will have to pay.  Check your insurance policy to be certain you are aware of what your deductable is and that you are paying your deductable.

What To Do IF You Think The Bill Should be Paid by Worker’s Compensation

Contact the Human Resources department for information about Worker’s Compensation.  They should be able to help determine if your bill should be covered by this insurance. 

What To Do IF You Think the Bill Should be Paid by Medicare

You will need to make sure that you have the coverage for the medical services on the bill.  There are four different types of Medicare which cover different services.  Those different types are listed below:

• Part A – Hospital Coverage
• Part B - Medical Coverage
• Part C – Medicare Advantage Plans
• Part D – Prescription Drug Plans

Every time that Medicare intends to pay for all or a portion of the bill, they will send a Medicare Summary Notice (MSN).  This notice will list what Medicare will pay and what you are responsible for.  Medicare will be filed for you by the office where you received the service. 

It is important to check with your medical provider before receiving the service because if the service provider does not accept Medicare you will be responsible for the bill.

Medicare if a very complex topic, but there is additional information that will help you understand what should be paid by Medicare.  Please visit http://www.medicare.gov/.

Divorce

A divorce decree is a legal agreement between two ex spouses that should explain who is responsible for what bill.  If this information is not in a divorce decree, it is important to discuss outstanding bills and how they will be resolved because a creditor has the right to attempt collection from both individuals to resolve the outstanding balance.  If unresolved balances are left unpaid, it can affect both credit scores.

Bundled Accounts

Sometimes, accounts are bundled together into one bill. Two companies may offer similar services to the same person and combine the bill to provide a better rate. For example, you may sign up for phone service and the company offers a bundled package that also includes TV service.  By signing up for this bundled service package, all of your bills will come from the phone company and you only need to make payments to the phone company.  The phone company receives the payment, takes out what is owed to them and sends the rest of the payment directly to the TV company so you don’t have to pay two companies.

However, if you get behind on your bills and the phone service company sends the account to a collection agency, the bill is split apart and both services are now separated.  Now, you will need to pay the phone company and TV company separately and you will be receiving calls for both, each with a different payment address.  To get the accounts resolved as quickly as possible, you should make a payment on both accounts as soon as possible.

Equipment Charges

Charges for Leased Equipment

Most TV or cable services lease equipment that is necessary to provide their service.  Once an account is placed with a collection agency, the company may no longer accept the return of the equipment.  Sometimes, companies do have a return policy in which you can return the equipment in order to remove the charge on your bill.  Information on how to return the equipment can be provided by the company directly.

Charges for Returned Equipment

When the equipment is returned, the cost of the equipment should be credited.  If no credit is received there are a few possible reasons. 

If the equipment was damaged in any way, you could be charged for the equipment.  You can find out if the equipment was considered to be damaged by calling the company’s customer service department.

It could also be possible that the time to return the equipment has passed.  You can find out if the equipment was returned late by calling the company’s customer service department.

Installation Issues

It is possible that errors could be made in the installation process.  If any damage is done during the installation process it is imperative to call the company who is providing the service immediately.  Normally the company where the service is provided will hire an outside company to do the installation.  If nobody is informed of the issue it will not get taken care of.  It’s always best to check over the work of the installers before they leave your home in order to fix the problems right away. 

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