In today’s digital age, identity theft is more prevalent than ever. Thieves no longer need to physically steal your credit cards or IDs—they are just a few clicks away from hacking into your sensitive information online. With identity theft on the rise, most Americans either know someone who has fallen victim to it or have experienced it themselves.
But beyond its illegality, what do we really know about identity theft and how it’s addressed under California law? Enter the California Identity Theft Act (CITA), a vital consumer protection tool enacted in 2002 to safeguard victims of identity theft.
What is the California Identity Theft Act (CITA)?
Codified under California Civil Code §§ 1798.92–1798.97, CITA establishes rights and protections for identity theft victims. It mandates that creditors and debt collectors diligently investigate claims of identity theft once they receive written notice from the victim.
Under CITA, “a person may bring an action against a claimant to establish that the person is a victim of identity theft in connection with the claimant’s claims against that person.”
In simple terms, if a creditor or debt collector attempts to collect a debt resulting from identity theft—even filing a lawsuit to recover that debt—the victim can sue them in return. However, before filing suit under CITA, the victim must first provide a police report or an FTC identity theft report to the creditor or collector at least 30 days prior to initiating the action.
Relief Available to Identity Theft Victims Under CITA
If a victim of identity theft successfully proves their case by a preponderance of the evidence (meaning it is more likely than not that identity theft occurred), they may be entitled to various forms of relief, including:
A Declaration of Non-Obligation
A court order stating that the victim is not responsible for the debt in question.Voidance of Interests
Any security interest or other claim against the victim’s property related to the fraudulent debt may be declared void.Injunctions Against Collection Efforts
A court order restraining the creditor or collector from continuing to collect or attempting to collect the fraudulent debt.Monetary Damages and Costs
The victim may recover actual damages, attorney’s fees, and court costs.Equitable Relief
Other remedies deemed appropriate by the court.
Additionally, a victim may seek a civil penalty of up to $30,000 if they meet a higher standard of proof—clear and convincing evidence—showing:
They provided written notice of identity theft to the creditor/collector at least 30 days before filing suit.
The creditor/collector failed to diligently investigate the claim.
The creditor/collector continued pursuing the fraudulent claim even after being presented with evidence of the identity theft.
While obtaining this civil penalty is more challenging due to the stricter standard of proof, it serves as a powerful deterrent against improper conduct by creditors and debt collectors.
Why Knowing Your Rights Under CITA Matters
Understanding your rights under the California Identity Theft Act can make all the difference. Victims of identity theft often face the risk of paying debts they are not legally responsible for—debts incurred through no fault of their own.
CITA provides victims with a legal avenue to fight back and obtain relief, whether that’s clearing their name, stopping collection efforts, or recovering monetary damages.
In a time when digital theft is increasingly common, staying informed about laws like CITA empowers consumers to protect themselves and hold negligent or predatory creditors accountable.
