Welcome to the Research Assistant Weekly Newsletter - a subscriber-only resource for insight into emerging compliance challenges, details on peer calls, and links to new Research Assistant reports, documents, tools, and more.
|
Sponsored by TCN
|
Please complete our Research Assistant Survey: Help Us, Help You!
Most of us handle our entire lives online. That includes our banking. With the ease of applying online for a loan from a Fintech company, it would make sense that claims of fraud (identity theft) are on the rise. So, how do we handle those and which responsibilities fall to our clients?
I found a few states that provide some direction; California, Illinois, New Mexico, New York, Pennsylvania, and Vermont. What they all have in common is their reference to the FTC’s Identity Theft Affidavit form 14039 found here PDFfiller – irs form 14039.pdf (form-14039.com). Most of these states reference using this form in lieu of a police report. Evidently, a large number of identity thefts occur within a family dynamic. Therefore, some consumers will not or don’t want to file a police report. The FTC’s form 14039 gives consumers another option. Regardless of what you accept or not to verify identity theft, your policies should reflect your practices and you should state clearly what you need from your clients in your contracts.
Suggestions for your agency’s policy(s) include:
Conducting an investigation into consumer claims of identity theft, including:
-
A statement from the consumer that they are the victim of identity theft. You should state whether or not you will accept an oral statement or if it has to be in writing. I would suggest that you accept it orally and in writing.
-
A copy of a police report or the FTC’s form 14039.
-
A copy of the consumer’s driver’s license or state issued picture ID.
-
Any additional statements and/or documentation that support the consumer’s claim of identity theft.
-
Notification to your client as to the consumer’s claim of identity theft.
-
Cease communications during the investigation.
-
When and how you notify the consumer of the results of the investigation.
-
Procedure that outlines your agency’s process for accounts where identity has been identified as identity theft and those that are clearly not identity theft.
Suggestions for client responsibility in reference to identity theft include:
-
Accurate verification documents are a must, and not just for identity theft.
-
What the client’s policy and procedure are for claims of identity theft.
-
Having a direct point of contact at the client for claims of identity theft as well as other disputes and complaints.
As with all disputes and complaints, policy documentation and investigation are imperative and expected by the FTC and the CFPB. For more information on their expectations for agencies and consumers you can visit the following sites.
Top Reads:
Upcoming Webinars/ Other Announcements:
|