Any rights if Fraud discovered after 60 days?

Get credit card fraud help: For victims of credit card fraud and identity theft, and those that can help.
6 posts
kcarter2088
 
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Any rights if Fraud discovered after 60 days?

Postby kcarter2088 » Mon Jul 20, 2015 6:02 pm

I opened a credit card at a credit union over 10 years ago. I used the card for a couple years, then once the balance was zero, I stopped using it. I didn't close the account because closing accounts hurts your credit. After I stopped using it around 8 years ago, I moved 7 or 8 times. I didn't update my contact info with the credit union because I wasn't using the card. My credit score has been in the 780-800 range for years. A couple weeks ago (June 2015) I noticed my score drastically dropped to 650. I pulled my credit report and saw that I had an outstanding unpaid balance on that card & 2 late payments. The original card I got in 2005 had long been expired. The credit union had mailed a new card to my previous address in October 2014. Someone illegally opened the mail, activated the card, and charged $1600 in 2 days in December 2014. A couple days later, Visa flagged the transactions and the bank tried to contact me, but all 3 of my address, phone, & email had changed. They turned off the card so nothing else was charged, but I never found out about the fraud until my credit score dropped, 6 months later. The credit union is telling me I am liable for the charges because I didn't notify them within 60 days of the fraudulent charges. Are they right? Am I liable for these charges?

Thanks for your help! I really appreciate it!

Keith


takeshi
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Re: Any rights if Fraud discovered after 60 days?

Postby takeshi » Tue Jul 21, 2015 2:57 pm

kcarter2088 wrote:I didn't close the account because closing accounts hurts your credit.

Don't just assume that. Utilization is immediately impacted but AAoA is not. You can certainly hurt your credit by not actively maintaining and monitoring an account as you have experienced. If you can't then you should consider closing it.

kcarter2088 wrote:The credit union is telling me I am liable for the charges because I didn't notify them within 60 days of the fraudulent charges. Are they right? Am I liable for these charges?

We can't answer that. The terms that were provided with your card would have the information needed to answer your question. Most creditors do have a limited timeframe to report fraud and 60 days does not sound unusual. Definitely make sure you read and understand your terms going forward and that if you keep an account open maintain it an actively monitor it.

Gamma
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Re: Any rights if Fraud discovered after 60 days?

Postby Gamma » Tue Jul 21, 2015 3:19 pm

I believe they give you a 30 day grace period to report fraud after the statement cut date when the fraud occurred.
Also got one question. How would a stranger activate a card when they ask personal questions only the card owner should know such as last 4 SSN, date of birth, etc.

Vermonster
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Re: Any rights if Fraud discovered after 60 days?

Postby Vermonster » Tue Jul 21, 2015 3:40 pm

Given that they attempted to contact you in multiple ways, you are most likely up the proverbial creek. Creditors will sometimes be more lenient if you moved, or had an undue hardship at the time. BUT they still need a way to contact you.

Just curious, Why would you change your email address when you moved?
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whit
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Re: Any rights if Fraud discovered after 60 days?

Postby whit » Tue Jul 21, 2015 3:56 pm

kcarter2088 wrote:I opened a credit card at a credit union over 10 years ago. I used the card for a couple years, then once the balance was zero, I stopped using it. I didn't close the account because closing accounts hurts your credit. After I stopped using it around 8 years ago, I moved 7 or 8 times. I didn't update my contact info with the credit union because I wasn't using the card. My credit score has been in the 780-800 range for years. A couple weeks ago (June 2015) I noticed my score drastically dropped to 650. I pulled my credit report and saw that I had an outstanding unpaid balance on that card & 2 late payments. The original card I got in 2005 had long been expired. The credit union had mailed a new card to my previous address in October 2014. Someone illegally opened the mail, activated the card, and charged $1600 in 2 days in December 2014. A couple days later, Visa flagged the transactions and the bank tried to contact me, but all 3 of my address, phone, & email had changed. They turned off the card so nothing else was charged, but I never found out about the fraud until my credit score dropped, 6 months later. The credit union is telling me I am liable for the charges because I didn't notify them within 60 days of the fraudulent charges. Are they right? Am I liable for these charges?

Thanks for your help! I really appreciate it!

Keith


It's always a good idea to keep your records up to date so that you are available to be contacted in case anything.

Besides that, if the credit union is telling you that you have 60 days, that is based on the credit card agreement terms, as takeshi mentioned, subject to change with notification and option to opt out by discontinuing the service..but that's done via mail so..

I would A) request the agreement to be resent, it might not do much, but there could be a long shot that the rep is wrong and it's written differently in your credit card agreement, also check with visa policies.

December 2014 is not that far off, and the amount is not big enough that you can't fully recover in small claims court. B) Depending on how serious you are on this, and how far you're willing to go, you can always ask to see the charges in 12/14 and than, try to go to that store and see if you can get tapes after filing a police report.

C) With the police report, you can at least try to mend your credit report, it's going to be an uphill climb, but again, depends on you yourself, and how far or much work you're willing to do.

Yes, this all sucks.

But most people seem to conveniently forget about all the good stuff, and, when it comes to the security and safety of their money and credit, think that it's all one sided.

Banks have majority of the responsibilities to keep your info secure, make sure there is no fraud, etc..but cardholders have the responsiblities to do their due diligence and so that's why even though you're the victim, you had a hand in this incident being able to occur, and is the responsible party, in this incidence.

I'm sorry that probably isn't what you want to hear.

Kevin86475391
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Re: Any rights if Fraud discovered after 60 days?

Postby Kevin86475391 » Tue Jul 21, 2015 4:07 pm

Definitely read your terms and try to get them to reverse the charges; it can't hurt to try. However, the unfortunate truth is that you probably have very little recourse and in all honesty it's not really the credit card company's fault or responsibility in this situation. There's no point in dwelling on the mistake of course, but definitely I'd try to view the whole thing as a learning experience. If an account is still open - regardless of use - then the contact info does need to stay up to date, and more than that you should probably still actively login/call/check statements at least once a month to confirm there's no fraudulent activity.

My advice would be to try to negotiate a "pay for delete" with the creditor. Basically, you agree to pay them the account balance - which I know sucks since you legitimately didn't rack up the charges - and in return they agree to delete the negative information from your credit report. Get this agreement in writing. They may agree to do it given the circumstances. The reality though is that you're probably legally responsible for the charges either way, so at least try to get the pay-for-delete agreement so that your credit isn't also negatively affected for the next 7 years. Good luck!



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