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How does someone who committed idenity theft with a family member turn him/her self in?

I know someone that commited identity theft with a family member. The person is willing to pay back all the money used in the fraud. The only issue is the bad credit left on the victims credit. How do we fix the credit. I heard that if you fill out a police report and fax it to the credit companies they will remove the negative credit. I am sure the family of the victim does not want to press charges but just wants to file a complaint to fix the credit.

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