Will be updated as my time permits. (Last updated 6 March 2001)
Disclaimer:
There are some answers I was given when I asked these questions of various
US government agencies and friends who have been through similar situations.
(Thanks again for all of your help.) I also write from personal
experience, but I am no expert. This is just a stepping stone for
more information.
My credit was used to make purchases over the internet or over the phone without my knowledge. My credit card company sent me a letter saying that they are closing the investigation because the merchant did not follow the procedures that the company gave them for and the merchant is now responsible for the charges. Why is this so?
The credit card companies instruct the merchants to have a signature when the purchase is made. Purchases done over the phone or on the internet often do not have signatures with the purchases. If there is no signature these purchases were not done in accordance with the procedures the credit card company has given to the merchants in writing. Therefore the merchant cannot claim the money from the purchase from the credit company.
My credit card company is not holding me responsible. Why is the merchant coming after me?
The merchant is coming after you
because they are now the victims and cannot collect on the money they lost
on the fraudulent purchase. Most merchants do not have the resources
to launch an investigation, so it is easier to go after you and/or refute
the charges.
What does it mean to have a "fraud alert" on my credit report?
For the next seven years you will
have to be called or be notified in writing when an inquiry about an application
for credit or a loan passes through the credit bureau. Normally this
is almost transparent. If you need instant credit and you are not
near the phone number you gave the credit bureau, you will not get the
credit on the spot. I found this out when I applied for a The Children's
Place Credit card. I had to call the issuing bank about two weeks
later to verify my identity so they could finish processing my application.