If someone just committed fraud/identity theft on you, will you lose your credit or have bad credit (for future references) and can you ever regain those credit back to normal?

Clarita

I know someone that commited identity theft with a family member. The person is willing to pay back all the money used in the fraud. The only issue is the bad credit left on the victims credit. How do we fix the credit. I heard that if you fill out a police report and fax it to the credit companies they will remove the negative credit. I am sure the family of the victim does not want to press charges but just wants to file a complaint to fix the credit.

Jeremiah

Meaning, I know someone who says that society is now making a big deal over it and that it will never happen to him, because he already has bad credit, mostly due to his own choices anyway, and that the best way to be safe from identity theft is to already have bad credit.

How true is that?

Stephani