Coping with Identity theft and credit card companies.

Coping with Identity theft ...
and credit card companies.

At some point in time, we all have to deal with an credit agency or a company on a credit related issue.

Identity theft is a very serious matter and is devastating for it's victims.

The time and effort of the individual and agencies handling these issues are tremendous. Often times, little charges go unnoticed and the victim pays for them in the newly created roll-over accounts.

Beware: It is common practice to close the tampered account and open a new account with the your old charges included into the new account. Verify all charges closely.

The credit card companies allow for disputes but their policy and procedures are so demanding that resolving an issue wears on the victim's patience.

Your tolerance for their bureaucracy may become overwhelming. The employees at credit card companies have heard it all and are so insensitive to your complaints that talking to a wall may be more beneficial.

In 2003, the Fair and Accurate Credit Transactions Act was enacted.

The Federal Trade Commission said that provisions of the enacted Fair and Accurate Credit Transactions Act of 2003 will help reduce identity theft and help victims recover.

The Act of 2003 says one of the enacted provisions requires the three major credit reporting agencies to provide consumers with a free copy of their own credit report every 12 months.

Beware: Of web sites asking for your credit card number before you get your free credit report. You may pay several months of charges before you realize what all you agreed to. Write to the major credit agencies for your free credit.

The reports allow consumers to discover and correct errors in their credit records and to assure that accounts have not been fraudulently opened in their names.

National Fraud Alert System is another provision that will help and detect identity theft. Consumers who reasonably suspect they have been or may be victimized by identity theft can alert the potential creditors. This notice will have creditors proceed with caution when granting credit.

A provision of the law will require that merchants, employees, or others who may have access to the receipts do not have access to consumers’ names and full credit card numbers. Therefore, account numbers on credit card receipts be shortened or “truncated”.

FTC is working with banking regulators to identify “red flag”

indicators to help financial institutions and creditors analyze

identity theft patterns so that they can take action to prevent further incidences of identity theft.

The agencies also are developing a rule that will require appropriate disposing of credit information. This requirement will help to ensure that, once a business no longer needs the information, there are requirements set forth in storing and disposing of the documents. Insuring that documents with this information are not simply left in the trash.

Those consumers who are recovering from identity theft have certain measures they can take to recover their credit reputations.

These include:

1. Stop agencies from reporting allegedly fraudulent account information when consumers establish that he or she has clearly been a victim of identity theft

2. Allow consumers to report accounts affected by identity theft directly to creditors to prevent spread of erroneous credit information.

3. Information that can assist victims in proving that they are, in fact, victims. That requires creditors or businesses to provide copies of business records of fraudulent accounts or transactions related to them.

Provisions of the 2003 Act along with credit monitoring services has helped reduce the occurance of identity theft. Although, the Fair and Accurate Transaction Act has helped remedy the problem it has done very little to deter the criminals. It is almost impossible to pick up a newspaper or watch the evening news without seeing a report on an identity theft. The criminals are working harder and finding creative ways
to continue their trade.

More credit protection legislation is needed and stiffer penalties may be necessary to deter the criminals for these activities.

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