Money & Debt

Identity theft Wrongfully obtaining and using another person’s personal data. happens when a person uses another person’s personal information without permission. The information is used to commit fraud The deception of someone(s) with intent to cause damage (not including  forgeries and counterfeiting). or other crimes.

Personal information may be used to:

• Open new accounts in another person’s name, also called true identity theft,
• Make charges on existing accounts without permission, also called an account takeover, or
• Control, exploit, or harm someone they know, also called familiar fraud or coerced debt.

Identity theft can cause serious problems, including money loss, stress, and damage to credit.

Identity theft Wrongfully obtaining and using another person’s personal data. often affects money, credit history, and emotional well-being.

Financial problems may include:

• Purchases or withdrawals that were not approved,
• Money that is permanently lost or hard to recover, and
• Collection actions or lawsuits for debts tied to fake or unauthorized accounts.

Credit-related problems may include:

• Lower credit scores,
• Trouble getting housing, loans, or credit,
• Higher interest rates, and
• Problems with employment background checks.

Fixing issues caused by identity theft can take a long time and be stressful.

True identity theft Wrongfully obtaining and using another person’s personal data. happens when someone opens a new account in another person’s name without permission. The thief often uses personal information such as a Social Security number. A number that the federal government gives to each U.S. citizen. It keeps track of their earnings and retirement benefits.

This may look like:

• A bill for a credit card the person never applied for, or
• Contact about a loan the person did not request.

The person whose identity was stolen may appear legally responsible for the debt, even though they did not agree to it.

Do not give information in response A formal written answer to the plaintiff or petitioner's written statement to calls, emails, or text messages about unfamiliar accounts. Scammers often pretend to be banks, collectors, or investigators. Giving information can make the problem worse.

Instead, contact the company using a verified phone number or website.

An account takeover happens when someone uses an existing account without permission. The thief may watch the account, make purchases, or move money.

Some thieves make small test charges before making larger ones. These charges may be easy to miss.

Account takeovers can happen with credit cards, debit cards, bank accounts, or online payment services.

Warning signs of an account takeover may include:

• Logins from unknown devices or locations,
• Charges from businesses the account holder has never used, or
• Small charges that do not make sense.

Alerts from banks or credit card companies may also signal a problem. Legitimate alerts do not ask for passwords or full account numbers.

Familiar fraud The deception of someone(s) with intent to cause damage (not including  forgeries and counterfeiting). is a type of identity theft. Wrongfully obtaining and using another person’s personal data. Familiar fraud happens when someone the victim knows misuses personal information. The person may be a family member, partner, or other trusted person.

Familiar fraud may involve:

• Opening new accounts without permission, or
• Using existing accounts without consent. When someone gives permission for someone else to do something

Some victims of familiar fraud are children or older adults.

Familiar fraud The deception of someone(s) with intent to cause damage (not including  forgeries and counterfeiting). often happens in relationships involving abuse, pressure, or control. The victim may not feel safe saying no or reporting the conduct.

The misuse of information may be ongoing and hidden. Victims may discover the fraud only after debt collection or credit damage begins.

Illinois law recognizes that this kind of identity theft Wrongfully obtaining and using another person’s personal data. can happen within families or households.

Coerced debt is debt caused by abuse, threats, pressure, or misuse of personal information. It is a form of identity theft. Wrongfully obtaining and using another person’s personal data.

Under Illinois law, coerced debt may happen:

• Between family or household members,
• In domestic violence situations, or
• As a result of human trafficking.

Illinois law provides special protections for victims of coerced debt.

The perpetrator of coerced debt is a person who caused harm by:

• Creating debt using another person’s name or account without free and voluntary agreement, or
• Forcing another person to use an account to create debt.

In many coerced debt situations, this is someone the victim has a personal relationship with, like a:

• Spouse,
• Partner, or
• Other family or household member.

Illinois coerced debt protections apply to:

• Consumer debt, and
• Any kind of personal debt not secured by real property.

Debt not covered by the Illinois coerced debt protections includes:

• Mortgages,
• Home equity Amount that is left after a person pays off their loan lines of credit (HELOCs),
• Mechanics liens, and
• Property tax debt.

When a coerced debt claim is made, collection agencies must pause while the claim is reviewed.

If the debt is confirmed as coerced debt:

• Collection must stop, and
• Steps must be taken to remove the debt from credit reports.

These protections apply even if the debt is already in collections.

The victim must send the debt collector A person or company that regularly collects debts owed to another person a Statement of Coerced Debt. At least one required supporting document must be included. Learn more from the Illinois Department of Financial and Professional Regulation (IDFPR).

Supporting documents may include:

• A police report When a police officer writes a description of what happened at an accident that names the coerced debt,
• A court order stating the debt was coerced,
• Written verification from a qualified third party, or
• Other documents, such as an order of protection. A document from a judge that tells an abuser to stop further domestic abuse, or face penalties

Qualified third parties include law enforcement officers, lawyers, medical professionals, victim service providers, and clergy members. Use the IDFPR Supporting Documentation of Coerced Debt form to submit this information.

If a collection agency files a court case, the debtor A person who owes money to someone else can tell the judge that the debt was caused by coercion by filing an affirmative defense: When a defendant asserts new facts in a case that are different from the facts given by the plaintiff. If proven to be true, these are reasons why the plaintiff should not win.

• Use ILAO’s Respond to a lawsuit Easy Form to prepare an answer and affirmative defenses, or download blank Answer or Response and Affirmative Defenses forms from the Illinois Supreme Court, and
• Include an affirmative defense explaining that the debt was coerced.

The judge can review the evidence Anything used to show that something is true at a hearing. When the parties in a case present their sides of a case to a judge or other officer

The collection agency must pause collection while reviewing the Statement of Coerced Debt and supporting documents, such as the Supporting Documentation of Coerced Debt.

If the claim is approved, the agency must:

• Stop trying to collect the debt, and
• Take steps to remove the debt from credit reports.

The agency cannot continue collection once the debt is confirmed as coerced debt.

Yes. A collection agency may decide that the debt is not coerced debt.

If a collection agency files a court case, the debtor A person who owes money to someone else can tell the judge that the debt was caused by coercion by filing an affirmative defense: When a defendant asserts new facts in a case that are different from the facts given by the plaintiff. If proven to be true, these are reasons why the plaintiff should not win.

• Use ILAO’s Respond to a lawsuit Easy Form to prepare an answer and affirmative defenses, or download blank Answer or Response and Affirmative Defenses forms from the Illinois Supreme Court, and
• Include an affirmative defense explaining that the debt was coerced.

The judge can review the evidence Anything used to show that something is true at a hearing. When the parties in a case present their sides of a case to a judge or other officer

Unauthorized charges are transactions made without permission. These may include:

• Purchases,
• Transfers,
• Withdrawals, or
• Payments.

Unauthorized charges can happen through identity theft, Wrongfully obtaining and using another person’s personal data. account takeovers, or scams.

Unauthorized charges are often found by reviewing:

• Account statements,
• Recent transaction histories online or in mobile apps, and
• Pending or posted transactions.

Banks and credit card companies may also send alerts. Legitimate alerts do not ask for personal or account information.

Unauthorized credit card charges must be disputed in writing within 60 days of the statement showing the error. Federal law requires credit card companies to investigate disputes.

To start a dispute:

• Report the charge using the number on the card or statement,
• Send a letter by certified mail A document delivery service such as the US Postal Service that sends a party a receipt as proof that the documents were mailed and delivered to the credit card company with a copy of any related police report, When a police officer writes a description of what happened at an accident
• Keep records of calls, screenshots, and messages, and
• Follow up in writing to the billing inquiries address if the issue is not resolved quickly.

During the investigation, the disputed amount does not need to be paid and cannot be reported as delinquent.

If a dispute is denied, the credit card company must provide a written explanation. Consult a consumer lawyer Someone who represents clients in courts or who gives legal advice right away to find out potential legal options. The person whose dispute is denied may:

• File a complaint with the Consumer Financial Protection Bureau (CFPB),
• Raise the issue with credit bureaus, or
• Respond if a debt collector A person or company that regularly collects debts owed to another person or court case follows.

Refusing to pay may affect the account or credit report, but the issue can still be challenged.

Unauthorized debit card charges and electronic transfers are covered by the Electronic Fund Transfer Act.

The amount that the victim owes depends on how quickly they report the issue:

• Reporting within two business days limits loss to $50,
• Reporting after two business days but within 60 days may result in liability up to $500, and
• Reporting after 60 days may result in loss of all funds taken.

Banks must investigate reported errors and may provide temporary credit during the review.

If the bank denies the claim, consult a consumer lawyer Someone who represents clients in courts or who gives legal advice right away to find out potential legal options. People who are unsatisfied with how the bank resolves the dispute can file a complaint with the Consumer Financial Protection Bureau (CFPB).

Payment services like Zelle and Venmo often offer less protection than credit or debit cards. Transfers usually happen immediately and cannot be canceled.

Report unauthorized activity immediately to the payment service:

• For Zelle, contact the bank that provided access, and
• For Venmo, use in-app support or contact customer service.

File a police report When a police officer writes a description of what happened at an accident documenting the theft. The unlawful taking of property, money, or services from another person, business, or organization Send a copy of the police report and a written dispute letter to the bank by certified mail. A document delivery service such as the US Postal Service that sends a party a receipt as proof that the documents were mailed and delivered  

When dealing with identity theft, seeking a free consultation with a consumer lawyer Someone who represents clients in courts or who gives legal advice is useful. However, a lawyer is not required to:

• Report identity theft,
• Dispute identity theft with the credit bureaus,
• Respond to debt collectors,
• Send a collector a Statement of Coerced Debt,
• Tell a judge that the debt was coerced, or
• File a complaint with the Consumer Financial Protection Bureau (CFPB).

Use Get Legal Help to find free and low-cost legal resources. The National Association of Consumer Advocates also has a directory of local lawyers who help consumers. 

For help with domestic violence:

• Visit Get Legal Help,
• Read the Illinois Coalition Against Sexual Assault’s When a person commits an act of sexual penetration by force or threat of force. Done without the consent of the victim. This includes when the victim cannot give consent.  Illinois Legal Aid Resources for Sexual and Domestic Violence Survivors, and
• Use the Illinois Coalition Against Domestic Violence’s domestic violence victim service agency directory