When dealing with creditors and collection agencies, one of the most important things to do is be vigilant. A good starting point is to make sure the debt in question is valid. The best way to do this is to make sure the agency with whom you are communicating is valid and that the debt in question was accrued by you, and not someone pretending to be you.

Consider the following:

Don’t Give out Personal Info Over the Phone: A good rule of thumb, when dealing with collection agencies, is to never give out personal information over the phone. First of all, a collection agency, if the debt is valid, should already have your personal information. They shouldn’t be asking you for things like your social security number or your mother’s maiden name. If they are, it’s more likely that you are speaking with someone who is trying to steal your identity, and not someone legally trying to settle a legitimate debt. Even if you do the calling (for instance you get a letter and call the number listed in the letter), make sure the person you are calling is legitimate before you divulge anything.

Look for Legitimacy: There are a few ways that can help you verify the validity of a collection agency. First of all, ask them for their registered business name and ask them if they are legally allowed to collect in your state of residence. Turn to the Internet for help: google their name, visit their website, and see if they are registered with the Better Business Bureau. Don’t deal with this “collection agency” until you are completely satisfied with their validity.

Report them to the Federal Trade Commission: If you have discovered that a collection agency is valid but that the debt in question is not a result of your debt, but the result of identity theft, report it promptly, via certified mail, to the Federal Trade Commission. You should also report the identity theft with your local police department, and then report back to the collection agency. Collection agencies, by law, must work with people who have been victims of identity theft.  They must report back to the original creditor that the debt has been reported as fraudulent.

Block the Account: If you are the victim of identity theft, tell your credit bureau (either Experian, Equifax, or TransUnion), and report that you have fallen victim to identity theft. Once you have told one credit agency, they must tell the others. You must send the credit bureaus copies of the police report and proof that you are who you claim. The credit agencies should then block any negative remarks, that have resulted from identity theft, from your file.

Get a Fraud Alert: Not only do you need to have negative information removed from your credit report, but you also need to have a fraud alert adhered to your credit report. You can do this by alerting one bureau, and allowing them to tell the others. The fraud alert

will tell creditors that your identity has been stolen and that they need to be cautious about issuing credit under your name.

If you are having trouble, call for backup: If you have had your identity stolen, and you are having trouble getting your collection agency or creditor to listen to you, contact a lawyer, and have them call the collection agency. The word “attorney” has a way of making them listen.

Identity theft, either by people pretending to be creditors or through other means, happens quite often. This is why pulling your credit report on an annual basis - and scrutinizing it for mistakes - is essential. Anything that seems erroneous should be dealt with immediately.