Did you know there are no laws regarding the minimum age a minor must be before the credit reporting agencies begin compiling information about them? Unfortunately, many parents assume they don’t have to worry about their child’s credit until they turn 18, which is far from the truth. As such, you may be shocked to discover that your child has debt listed on their report. If this reflects your circumstances, you’ll want to keep reading to learn how this happens and what you can do with the help of a Los Angeles, California identity theft lawyer to remedy the situation and set your child up for future financial success.
Understanding Why a Child Can Have Debt or a Credit Report
If you have recently checked your child’s credit report only to find they have debt accumulated despite having no loans or accounts in their name, it’s important to understand what the causes could be.
Common Reasons a Child Might Have Debt
- They are an authorized user on your credit card: Many parents will allow their children to use their credit cards to help build up their credit scores for the future. However, if your card has late payments and accumulated debt, it will reflect on your child’s credit as well.
- Your child is a victim of identity theft: Because most parents don’t know that children can have credit reports and therefore fail to check them, you’ll find that they often make the “perfect” victims for identity theft, as they also tend to have a clean slate. Because parents are unaware of these reports, they fail to check them, meaning the theft can go unnoticed for years
- A creditor incorrectly linked records: This is most often the result of a clerical error by a creditor when furnishing information to the reporting agencies
- Misreported data: It’s not uncommon for credit reporting agencies to incorrectly report data. As such, one of the bureaus may have misreported or merged credit files, thus making it appear as though your child has debt.
Why Children Are Especially Vulnerable to Identity Theft
There is a common misconception that credit reports are only created when a child turns 18, as this is the age when they can enter into legal contracts. However, this is far from the truth. In reality, as mentioned above, there are a number of reasons a child may have a credit report prior to their 18th birthday. As such, most instances of fraud go undetected until a child begins applying for credit, like student loans or a car.
Additionally, criminals often exploit unused or “clean” social security numbers. Because there is no credit history associated with the number, this makes it an ideal target for thieves.
Signs That Your Child May Be a Victim of Fraud
Understanding the signs that your child may be the victim of identity theft is critical to responding quickly and protecting their credit. As such, the following are some of the most common signs of identity theft:
- Debt collectors contacting your child
- Denied student loans or bank accounts because of “existing debt”
- Loan applications in their name
- Pre-approved credit offers
- Bills sent to your child
How to Confirm if Your Child Has a Credit Report
Because children do not automatically receive credit files, you are required to submit a manual request to check if a report exists.
How to Request Your Child’s Credit Report
- Contact each of the three bureaus individually
- Provide proof of your relationship to the child
- Submit proof of identity for both you and the child
- Request to know whether a credit file exists
- Request a fraud investigation when necessary
What Can I Do if They Are a Victim of Fraud?
Seeing that your child has debt on their credit account that is related to fraudulent activity can be upsetting. However, it’s critical to understand that there are steps you can take to help remedy this matter and fix their credit in Los Angeles.
Step 1: Place a Credit Freeze on Your Child’s Account
If you discover that your child is a victim of fraud, it’s important to understand your legal options. Generally, one of the first things you should do is place a credit freeze on your child’s report, which can help prevent additional accounts from being opened in their name.
Step 2: Report the Theft Immediately
Next, you should file a formal police report and a report with the Federal Trade Commission. Both of these can assist you when disputing the inclusion of this information on your child’s account. When disputing the inclusion of this information, you’ll need to include a hard copy of your child’s credit report and additional supplemental information to help support that your child is a victim of fraud.
Step 3: Gather Documentation for Disputes
In order to file a dispute with the reporting agency, you’ll need supplemental documentation of the error. You should obtain copies of the following:
- Your child’s credit report
- Proof of your child’s age and identity (like a copy of their birth certificate)
- Proof of your identity
- The police report
- The FTC affidavit
Step 4: Submit Disputes to the Credit Reporting Agencies
When submitting the formal dispute to the credit reporting agency, you’ll also need to file a Minor’s Status Declaration Form. This helps establish that the child is a minor in conjunction with other proof of their age.
Connect with an Experienced Los Angeles Consumer Defense Attorney
Unfortunately, this process can be incredibly overwhelming to navigate on your own. That’s why it’s recommended to connect with an experienced criminal defense attorney with Los Angeles Legal Solutions. Our firm understands how difficult this process can be, which is why we will do everything in our power to help you rectify the injustice your child is facing. Contact us today to learn how we can fight for you during these difficult times.
