When you discover that someone has used your identity, it can feel incredibly violating. Not only is it upsetting to know that someone has your personal and sensitive information, but the financial impact it can have on you can be devastating. As such, they may wonder whether or not they should invest in identity theft insurance to help in the recovery process. If you’ve considered this option, the following blog explores more about how this coverage works, as well as the importance of discussing your circumstances with an experienced Los Angeles, California identity theft lawyer to help guide you through these difficult times.
What Impact Can Identity Theft Have on Me?
Unfortunately, there are a considerable number of impacts you may endure when your identity is compromised. Generally, the most substantial impact will be on your credit score. When someone uses your personal information to open loans or make purchases in your name, it will be left unpaid. As a result, the debt can accumulate without you even knowing it exists, causing your credit score to plummet. With a decimated credit score, obtaining loans can be incredibly difficult, if not impossible to navigate. In addition, this can result in higher interest rates and lost loans, causing economic damage.
In addition, when debt accumulates, it can be sent to collections. As such, you may find that you can face harassment from debt collectors looking to recover a debt you didn’t know existed. In other instances, you can be sued or face a default judgment over the debt accumulated in your name. This can result in legal fees as you navigate these complicated times.
Because these circumstances can be incredibly stressful, you may also experience physical impacts as a result. For example, you may experience high levels of anxiety, which can take a toll on your body. In some instances, this can result in insomnia and even heart issues.
How Does Identity Theft Insurance Work?
Unfortunately, many assume that identity theft insurance works by compensating victims for the actual losses they have sustained as a result of the identity theft they’ve endured. However, it actually works to compensate you for the recovery efforts you take. As such, this can help cover the cost of fees associated with hiring legal representation, closing accounts, and filing theft reports with your financial institutions. Additionally, some policies can assist you in freezing your credit to prevent additional theft or aid you in fighting to resolve unauthorized transactions on your account.
As you can see, identity theft insurance can be beneficial. However, the process of recovering from identity theft can be incredibly overwhelming, which is why it’s in your best interest to connect with an experienced attorney to guide you through these matters. At Los Angeles Legal Solutions, our firm is committed to helping you fight for the best possible outcome during these difficult times. Contact us today to learn how we can fight for you.
