File a fraud charge, then send a copy to the 3 credit reporting agencies and ask them to remove the account from your credit file.
The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.
Separate from any action against the credit card issuer for damages, your priority is to report the identity theft to stop additional damage. Please see the link below.
Then dispute the entire acount with your issuer. Correspond with them via certified mail, return receipt requested, so you have proof of receipt, and get this escalated within their fraud department so someone actually investigates this. It would also help to enlist a lawyer to keep them on this until it's fixed.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.