Unraveling Identity Theft in New York: Legal Remedies Under the FCBA, EFTA, and FCRA
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Unraveling Identity Theft in New York: Legal Remedies Under the FCBA, EFTA, and FCRA

Identity theft is not just a nuisance - it’s a financial and emotional nightmare for thousands of New Yorkers each year. Victims often discover unauthorized credit card charges, bank withdrawals they didn’t authorize, or even denials of loans and jobs due to fraudulent accounts opened in their names. Fortunately, federal laws such as the Fair Credit Billing Act (FCBA), Electronic Fund Transfer Act (EFTA), and Fair Credit Reporting Act (FCRA) provide powerful remedies for identity theft victims. In this article, we explore how these statutes apply specifically to consumers in New York and how an identity theft attorney in New York can help you restore your financial integrity.
Understanding the Laws That Protect You
1. The Fair Credit Billing Act (FCBA)
The FCBA primarily addresses credit card billing disputes. If someone uses your credit card without permission, you're typically not liable for more than $50, and often, you owe nothing at all. More importantly, creditors are legally required to investigate disputes and correct billing errors within 90 days.
Key protections under the FCBA:
- The right to dispute unauthorized charges within 60 days.
- Creditors must investigate within two billing cycles.
- You can’t be penalized or reported negatively during the investigation.
Whether you live in the Bronx or Brooklyn, if your credit card has been used fraudulently, an identity theft lawyer in NY can help enforce your rights under the FCBA.
2. The Electronic Fund Transfer Act (EFTA)
The EFTA protects you from unauthorized withdrawals and electronic fund transfers from your bank accounts, including fraudulent debit card charges and online banking fraud.
Key protections:
- Liability is limited to $50 if reported within two business days.
- You have 60 days to report unauthorized transfers for full protection.
- Banks must investigate and resolve within 10 to 20 business days.
If you're in NY and have noticed unauthorized activity in your bank account, an identity theft attorney in New York can guide you through recovery under the EFTA.
3. The Fair Credit Reporting Act (FCRA)
The FCRA is your strongest line of defense when identity theft affects your credit report. It governs how consumer reporting agencies like Equifax, Experian, and TransUnion handle your data.
Key FCRA rights include:
- Placing a fraud alert on your credit file.
- Freezing your credit to stop new fraudulent accounts.
- Blocking fraudulent information from your report (15 U.S.C. § 1681c-2).
- Disputing errors and requiring credit bureaus to correct them (15 U.S.C. § 1681i).
If you're wondering how to dispute identity theft on a credit report in New York, the FCRA provides a detailed legal process, and an identity theft lawyer in New York can make sure it's done correctly and effectively.
New York In Practice – Outside of the standard FCRA, Identity Theft attorneys in New York can also use Powerful State Protections:
- General Business Law § 380: New York has its own mini-FCRA, which provides additional rights around consumer reports.
- New York law limits who can access your credit report more strictly than federal law.
- Victims of identity theft can place security freezes on their credit files for free.
- You may be able to claim additional damages under New York’s identity theft statute (Penal Law § 190.77 - § 190.84), which also has criminal implications.
Real-Life Scenarios: What Identity Theft Looks Like in NY
Case 1: Fraudulent Accounts in Queens
A consumer in Queens, NY, applies for a mortgage and is shocked to learn that their application is denied due to delinquent accounts they never opened. Upon obtaining their credit reports, they discover multiple credit card and loan accounts fraudulently opened in their name. This is a classic identity theft case. Many victims in New York search for how to dispute identity theft on a credit report. Under 15 U.S.C. § 1681c-2, they can block this information from their reports. If the credit bureaus fail to act, an identity theft attorney in New York can help file suit to recover damages and correct the credit file.
Case 2: Unauthorized Charges in Albany
An Albany resident reports $3,000 in unauthorized credit card charges. Despite promptly notifying the issuer, the creditor fails to remove the charges or conduct a proper investigation. Under the FCBA, this is a clear violation. If you're in a similar situation in NY, consulting with an identity theft lawyer in New York is essential to enforce your rights.
Case 3: Bank Fraud in Brooklyn
A Brooklyn consumer finds three unauthorized $500 ATM withdrawals. The bank delays the investigation and denies their claim. Under the EFTA, victims have the right to dispute these charges and be reimbursed. Working with an experienced identity theft attorney in NY can make the difference in recovering lost funds and pursuing additional compensation if the bank is noncompliant.
Legal Remedies and Litigation Strategy
Victims of identity theft in New York have several legal tools at their disposal:
- File a Police and FTC Report
These reports are often necessary for blocking fraudulent data and triggering full FCRA protections. - Dispute the Fraudulent Information
Send certified dispute letters to the credit bureaus and furnishers. An identity theft lawyer in New York can ensure proper language and documentation. - Hire an Identity Theft Attorney in NY
Legal professionals work on a contingency basis, meaning you don’t pay unless they win. This is ideal for victims already under financial stress. - Pursue Legal Action
- FCRA: You may be entitled to statutory damages ($100–$1,000), actual damages, punitive damages, and attorney fees.
FCBA/EFTA: Similar remedies apply, and some violations may result in treble damages.
Shocking Identity Theft Statistics Every New Yorker Should Know:
- Over 67,000 identity theft complaints were filed in New York in 2020, marking an 85% increase from the previous year, and exceeding the total from a decade earlier.
- In the New York City metro area, there were 403 identity theft reports per 100,000 people - the highest rate in the state.
- Nearly 25,000 New Yorkers reported credit card fraud in 2020, often involving misuse of existing accounts or the opening of new ones.
- During the COVID‑19 pandemic, over 1.1 million fraudulent unemployment benefit claims were detected statewide, resulting in more than $12.3 billion in blocked payments.
- A 2024 profile shows New York ranked 12th among U.S. states, with 58,692 identity theft complaints, translating to 295 reports per 100,000 residents.
- Between 2017 and 2021, data breaches exposed personal data - including Social Security numbers, for 9.2 million New Yorkers.
- As of 2024, the FTC’s Consumer Sentinel Network logged over 6.5 million consumer fraud and identity theft reports nationwide, including 1.1 million identity theft complaints, some portion of which pertain to New York.
- In 2020–21, New York saw some of the lowest arrest rates for identity theft, with only 543 arrests statewide in FY 2019–20 - the fewest in a decade despite high incident rates.
Why New Yorkers Should Take Action
Identity theft can wreak havoc on your finances and reputation. With protections under the FCBA, EFTA, and FCRA, New Yorkers don’t have to face it alone. Whether you’re seeking an identity theft lawyer in New York, wondering how to dispute identity theft on your credit report in NY, or simply need legal advice, strong help is available. Acting swiftly is key - not only to recover losses but to hold negligent companies accountable.
About Consumer Attorneys
At Consumer Attorneys, we specialize in helping everyday people fight back against powerful institutions like credit bureaus, banks, and debt collectors. With offices in New York and beyond, our team is nationally recognized for handling identity theft, credit inaccuracies, and consumer rights violations under the FCRA, FCBA, and EFTA.
Our experienced identity theft attorneys in New York have successfully represented clients who were wrongfully denied credit, housing, or employment due to fraudulent reporting. We work on a contingency fee basis - you don’t pay unless we win your case.
If you need an identity theft lawyer in New York, and you're unsure how to dispute identity theft on a credit report or need to take swift action against fraudulent accounts or unauthorized bank activity, Consumer Attorneys is here to help. Our experienced team will guide you through every step - from gathering evidence and filing disputes to pursuing lawsuits and recovering compensation. You don’t have to face this alone - we fight for your rights and financial future.
Frequently Asked Questions
The EFTA limits your liability to $50 if reported within 2 business days. You have 60 days to report unauthorized activity, and banks must complete their investigation within 10–20 business days. If they fail, they can be held liable.
New York has its own mini-FCRA under General Business Law § 380, offers free credit freezes, and provides enhanced penalties under Penal Law § 190.77–190.84 for criminal identity theft offenses.
Consult an identity theft attorney in New York. Under the FCBA, creditors must investigate billing errors and may be held liable for failing to resolve disputes in good faith.
You may notice unexplained credit card charges, new accounts on your credit report, denied credit applications, or debt collectors calling about accounts you never opened. These red flags are common signs of identity theft.
Credit bureaus have 30 days to investigate and respond to your written dispute. If they find the item inaccurate or unverifiable, they must delete or correct it and provide you with a free updated report.
Consumer Attorneys not only represents you in legal disputes, they help gather documents, write effective dispute letters, track bureau responses, and ensure every step is taken to protect your financial and legal rights. Their goal is to restore your peace of mind and financial integrity.


Daniel Cohen is the Founder of Consumer Attorneys. Daniel manages the firm’s branding, marketing, client intake and business development efforts. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a we... Read more





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