Victims of identity fraud will now only have to inform one credit reference agency, instead of all three, to correct their credit record.

The UK’s three agencies – CallCredit, Equifax and Experian – have agreed to notify each other when restoring the record of someone whose personal details have been stolen and used by fraudsters.

The announcement comes after the National Consumer Council (NCC) said victims can spend months amending their credit record with the three agencies, whilst being hassled by debt collectors or being blacklisted for credit.

Anna Fielder at the NCC explained: “All three agencies will now work simultaneously to case-manage the restoration of the individual's credit file. This will involve each providing the victim with their credit report, contacting financial service providers where there has been fraudulent activity, and providing an on-going update of progress on the case.”

Fraudsters often run up large debts in their victim’s name by stealing their details and applying for credit, often on store cards, credit cards and mobile phone accounts. Until the victim settles the matter with their bank, their credit record will remain blacklisted, making it difficult for the victim to obtain credit cards, loans or mortgages.

Identity theft is one of the UK’s fastest growing crimes, affecting more than 100,000 people every year. The Home Office estimates identity fraudsters steal £1.7 billion annually.

Experts recommend checking your credit record every few months to see if any fraudulent credit applications have been made in your name. A copy of your record can be obtained from any of the three agencies for £2.