What to Do If Someone Opens Credit in Your Name

Discovering that someone has opened a credit account in your name is a deeply unsettling experience. The fear of being held responsible for someone else's debt can be overwhelming. However, it is crucial to remain calm and take swift, methodical action to resolve the situation and protect your credit file.

Under UK law, you are not liable for debts created through identity fraud. However, you must prove that the accounts are fraudulent to get the negative markers removed from your credit report and stop debt collection demands.

Step 1: Contact the Lender's Fraud Department

Your first priority is to contact the fraud department of the lender where the fraudulent account was opened. Inform them that you are a victim of identity theft and that you did not authorise the account. They will freeze the account to prevent further spending and begin an internal investigation. Ask them to confirm in writing that the account is under fraud investigation.

Do not pay any money toward the fraudulent debt. Making a payment could be interpreted as an acknowledgment of the debt, which could complicate the fraud investigation.

Step 2: Report to Action Fraud

You must report the crime to Action Fraud, the UK's national reporting centre for fraud and cybercrime, either online at actionfraud.police.uk or by calling 0300 123 2040. They will provide you with a police crime reference number. This number is vital, as lenders and credit reference agencies will require it as proof that you have officially reported the theft.

Step 3: Contact the Credit Reference Agencies

Once you have your crime reference number, contact Experian, Equifax, and TransUnion. Explain the situation and provide the reference number. They will add a Notice of Correction to your file, alerting future lenders that your identity has been compromised. They can also place a temporary block on your file to prevent new credit applications from being processed without additional verification.

Step 4: Register with Cifas

Register with Cifas, the UK's fraud prevention service. For a small fee, they will place a Protective Registration on your credit file. This ensures that lenders carry out extra security checks whenever an application is made in your name, significantly reducing the risk of further fraud. This is one of the most effective long-term protective measures available to fraud victims in the UK.

For broader guidance on monitoring your file going forward, read our guide on identity theft and your credit report.