Ontario man 'devastated' he owes $18,000 after 2 loans were fraudulently taken in his name

An Ontario man said he feels "devastated" after learning his identity was stolen to take out two fraudulent loans under his name.

"I wouldn't be able to do it, to pay that money back," Edward Mendonca of Toronto told CTV News.

He said he learned his identity had been fraudulently used when he received a letter in the mail from a financial company saying he was late paying loan payments totalling $18,824. 

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Mendonca said he always tries to maintain a good credit rating especially since he hopes to be a first-time home buyer and purchase a condo next year. That’s why he was concerned when he heard he owed money. 

"I've never opened an account with this financial institution," Mendonca said.

After Mendonca contacted the financial institution, he was told he took out two loans this past summer: one for $6,648 and the other for $12,176. 

Mendonca told the company that even though the loans were under his name, he had no knowledge of them at all.

"I have two outstanding balances that I never received goods for," said Mendonca. "It's affecting my credit rating. I'm trying to get this resolved."

According to a new report by Equifax Canada, some consumers with high credit scores are increasingly being targeted by criminals. Fraudsters use stolen personal information to steal the consumers identity, then apply for loans and credit cards.

"They are impersonating you and taking advantage of your solid credit history, then applying for something in your name," said Julie Kuzmic, senior compliance officer with Equifax Canada.

Equifax Canada advises consumers who do fall victim to identity fraud to report it to the police and get a report number. Equifax also encourages customers to contact their banks and credit card companies. Consumers should also contact the credit bureaus, Equifax and TransUnion, and submit a dispute for an investigation and place a fraud alert on their credit reports.

Identity theft victims might not even realize what happened until they check their credit rating or are contacted by a collections agency.

"You can end up with new credit accounts existing in your name that you might not ever know about," said Kuzmic.

After CTV News Toronto reached out to the bank on Mendonca’s behalf, the two loans were forgiven and his credit score was restored.

"It’s such a relief to have this dealt with," said Mendonca.