Disputing a debt after identity theft
If someone ran up a debt in your name, you can dispute it, report the fraud, and get free specialist support.
This guide helps you
- Know the immediate steps if a debt was created by identity theft
- Understand how to report the fraud and protect your accounts
- Learn how to dispute the fraudulent debt in writing
- Know how to correct your credit report
- Find free specialist support and external dispute resolution
9 min
What's happening
Identity theft is when someone uses your personal details to open accounts or take out credit in your name. You can end up being chased for a debt you never created. This is distressing, but there is a clear process: report it, dispute the debt, and clean up any damage to your credit file. This is general information, not legal advice.
Your first steps
- Contact IDCARE — Australia's free national identity and cyber support service — to get a tailored response plan.
- Tell the creditor the account is fraudulent and not yours.
- Report it to police and keep the report number.
- Secure your accounts — change passwords and consider a ban or alert on your credit report.
Step by step
- Report the fraud to IDCARE, police, and any affected creditor or bank.
- Dispute the debt in writing, stating it resulted from identity theft and asking for collection to stop.
- Place a ban or alert on your credit report with the credit bureaus so no new accounts can be opened.
- Ask the creditor to remove the fraudulent account and any related default.
- Escalate to a free external dispute resolution scheme if the creditor won't act.
What evidence helps
Helpful evidence includes your police report number, your IDCARE case details, copies of letters to and from the creditor, and your credit report showing the disputed account. Keep a simple timeline of who you contacted and when. You can read more about credit reports and bans at directory.merion.com.au/glossary.
Where to get free help
IDCARE provides free, specialist identity-theft support. The National Debt Helpline on 1800 007 007 can help with the debt side, and free legal help is available from community legal centres. If a creditor won't remove a fraudulent debt or default, take it to a free external dispute resolution scheme such as AFCA — see directory.merion.com.au/bodies.
Key takeaways
- Report identity theft to IDCARE and police, and keep the report number
- Dispute the debt in writing and ask for a ban on your credit report
- Ask the creditor to remove the fraudulent account and any default
- Free specialist support is available — you don't have to handle it alone
Frequently asked questions
Do I have to pay a debt run up by an identity thief?
Generally you should not have to pay for credit you didn't take out, but you must report and dispute it properly. Get free advice from IDCARE and the National Debt Helpline on 1800 007 007.
How do I stop more accounts being opened in my name?
You can place a ban or alert on your credit report with the credit bureaus. IDCARE can walk you through it for free.
What if the creditor won't remove the fraudulent default?
Complain to the creditor in writing, then escalate to a free external dispute resolution scheme such as AFCA if it isn't fixed.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
Know your options, know your rights
A free, plain-English guide to dealing with debt in Australia — and the people who can help.