What to Do If a Loan Application You Didn't Submit Appears

Discovering an unfamiliar loan application on your credit report is alarming but actionable. The steps below address both the immediate damage and the underlying identity theft.

Why This Happens

A fraudulent loan application means someone has enough of your personal information to attempt to open credit in your name: typically your name, address, Social Security number, and date of birth. This information may have come from a data breach, phishing attack, or stolen mail.

The application will appear on your credit report as a hard inquiry from the lender, and if approved, as an open account.

Immediate Steps

Step 1: Place a credit freeze at all three bureaus

This prevents any additional applications from being approved, even if the thief tries again.

• Equifax: myequifax.com or 1-800-349-9960
• Experian: experian.com/freeze or 1-888-397-3742
• TransUnion: transunion.com or 1-888-909-8872

Step 2: File a report at IdentityTheft.gov

IdentityTheft.gov, 1-877-438-4338. This generates an official FTC Identity Theft Report with legal weight. Use it in every subsequent communication with lenders and credit bureaus.

Step 3: Dispute the unauthorised inquiry

Dispute the hard inquiry with the bureau reporting it through their online portal. Submit your FTC Identity Theft Report. Under the FCRA, the bureau must block fraudulent information within 4 business days of receiving the Identity Theft Report.

Step 4: Contact the lender directly

Call the lender shown on the application using a number you find on their official website (not from your credit report, in case of reporting errors). Explain that you are a victim of identity theft, that you did not apply for this loan, and provide your FTC Identity Theft Report. Ask them to:

• Close any account opened fraudulently
• Provide written confirmation that you are not responsible for the debt
• Remove the inquiry and account from your credit report

If the Loan Was Already Approved and Funds Disbursed

Contact the lender's fraud department immediately. They will investigate and, with your documentation, typically close the fraudulent account and cease collection activity. They are required to investigate identity theft claims under the FCRA.

If the lender does not respond or continues collection, file a complaint with the CFPB at consumerfinance.gov/complaint (1-855-411-2372).

Filing a Police Report

Consider filing a local police report, particularly if you have a clear sense of how your information was stolen. A police report can supplement your FTC Identity Theft Report and may be required by some lenders for fraud investigations.