There are two issues with regard to identity theft which must be addressed:
- How am I covered if money is stolen from my account or my credit is used to purchase something?
- How to I restore my good name if I am the victim of identity theft?
In many cases the bank or credit card issuer will replace the lost stolen money or remove the charges from a credit card account under “zero liability” provisions they provide as part of their credit card protection plans. These banks and credit card issuers request that accounts and credit cards be cancelled as soon as the fraud is discovered so that damages can be limited.
In order to restore your good name you must prove to credit agencies that it was a fraudulent act that caused the problems with your accounts. That means that affadavits must be filed with each credit card issuer and credit rating agency detailing the circumstances under which the fraud occured. This can take hundreds of hours depending on the extent of the fraud.
One way to avoid the time consuming task and high costs of restoring your credit is to purchase Identity Restoration Coverage. This endorsement to a home policy affords up to $25,000 for fees associated with restoring your identity. The cost of this endorsement is $40.00 per year—well worth the cost.
