The three credit bureaus will, virtually automatically, take down any derogatory credit entry when you send them a police report. So, if you have an identity theft situation, the first order of business is getting that police report. Debt collectors and creditors will generally also cease all collection or default proceedings once they get a police report; many will cease collection of the account altogether once they get a police report.
A police report is not appropriate for every false or inaccurate derogatory credit report entry. You file a police report where you have good cause to believe that there’s been a crime, such as an identity theft. A routine false derogatory entry from a creditor or debt collector that is wrongfully marking up your credit report does not constitute a crime. If you have questions about whether it’s appropriate to file a police report, talk to the identity theft desk at your local police department.
Hope this helps.