Credit Card Fraud:
The Bait
Surf the Internet and view pages for
free, just for sharing my credit card number to prove I am over
18.
The Catch
Fraudulent promoters use my credit card
numbers to run up charges on MY cards.
The
safety Net
I share credit card
information only when I buy from a company I trust. I dispute
unauthorized charges on my credit card bill by complaining to the
bank that issued the card. Federal law limits my liability to
$50.
This topic is like stolen
identity. If I feel this has happened, I do 2 things. Send in a
letter like this one and get a Credit Monitoring Service. For more
information, click here. The letter will be placed on my report and
I will be contacted on before new lines of credit are opened or
charged.
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Scam number 2
Guaranteed Loans or Credit, On Easy
Terms
Some offer home-equity loans, even if I
don’t have any equity in my home. Others offer guaranteed, unsecured
credit cards, regardless of my credit history. The "loans" turn out
to be lists of lending institutions and the credit cards never
arrive.
Don't be fooled folks by all the
bull on the net.
IN FACT almost all e-mail
received UNSOLICITED is a SCAM. Don't fall for them
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Scam number 3
Get a new credit identity or credit
history
Do not be fooled
or tricked into buying a new credit file when I say it is
illegal.
If I have filed for bankruptcy, I may be
the target of a new credit repair scheme, often called "file
segregation." In this scheme, I am promised I can hide bad credit by
establishing a new credit identity.
The problem is, "file segregation" is
illegal.
If I use it, you I could face fines or
even prison.
The Pitch: If I have filed for
bankruptcy, I might receive a letter from a credit repair company
that warns me about my inability to get credit cards, personal
loans, or any other types of credit for ten years. For a fee, the
company promises says they will help me hide my bankruptcy and
establish a new credit identity you can use when applying for
credit.
If I pay the fee and sign up for the
service, I might be directed to apply for an Employer Identification
Number (EIN) from the Internal Revenue Service (IRS). Typically,
EINs -- which resemble social security numbers -- are used by
businesses to report financial information to the IRS and the Social
Security Administration.
DON'T mess
with the I R S. Dad Gum!
Claim 1: I will
not be able to get credit for 10 years (the period of time
bankruptcy information can stay on my credit record). This is
totally false. 13's have to wait until discharge and 7,s are
discharged immediately. Many banks will work with me in less than 2
years and some right away on 7,s
Claim 2: The company or "file segregation"
program is affiliated with the federal government. The federal
government does not support or work with companies offering such
programs.
Claim 3: The "file segregation" program is
legal. It is a federal crime to make any false statements on a loan
or credit application, which the credit repair company may advise me
to do. It is a federal crime to misrepresent my social security
number. It also is a federal crime to obtain an EIN from the IRS
under false pretenses. Further, you could be charged with mail or
wire fraud if you use the mail or the telephone to apply for credit
and provide false information. Also, file segregation would likely
constitute civil fraud under many state laws.
----------------------------------------------------
Remember Al Capone?
If I receive a
letter from a company making such claims, I contact my state
attorney general or consumer protection office.
I also file a complaint with the
FTC.
Write: Correspondence Branch, Federal Trade
Commission, Washington, D.C. 20580.
While the FTC does not handle individual cases,
it can act against
companies when it sees a
pattern of possible law violations developing.
Other FTC Brochures
For more information
about credit reports, I can order these free FTC
brochures:
Building a Better Credit Record,
Credit Repair Scams,
Fair Credit Reporting,
Fix You Own Credit Problems and Save
Money,
Scoring for Credit,
Solving Credit Problems, and
Women and Credit Histories.
Write: Public Reference, Federal Trade
Commission,
Washington, D.C. 20580.
Facts for Consumers from the Federal Trade
Commission -----
Brought to you by - The 'Lectric Law Library
The Net's Finest Legal
Resource For Legal
Pros & Laypeople Alike. http://www.lectlaw.com
Article on the scam. Click below.
http://www.ftc.gov/bcp/conline/pubs/credit/creditid.htm
--------------------------------
My right
by laws
Fair Credit reporting act
Below is an overview
of the FCRA
I must be told if information in
my file has been used against me.
I can find
out what is in your file
I can dispute
inaccurate information
Incorrect information
must be corrected
I can dispute inaccurate
info with the source
Out dated info must be
removed
Access to my files is limited
My consent is required
I may ask to exclude my name from outside
offers based on my credit score
I may may
seek damages from violators
These agencies
enforce the FCRA
FTC 877-ftc-help ......
CRA's
OCCA 800-613-6743 ...... National
Banks
Federal Reserve 202-452-3693 ........F
ederal reserve memebers
Thrift 800-842-6929
...... Savings' Banks
NCUA 703-518-6360
....... Fed Credit Unions
FDIC 877-275-3342
........ State Banks
DOT 202-366-1306
........ Air, Rail, Carriers
DOA
202-720-7051 ...... Packers and Stockyards
Identity Theft 877-id-THEFT......ID
theft
.
