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Older Americans Can Protect Credit By Understanding
Scams
Credit card companies offer advice for seniors on
avoiding scams, ID theft
Nov. 8, 2004 – Americans 55 and older control 70
percent of the personal wealth in the U.S., have excellent credit
ratings and are the fastest growing group of Internet users. They also
account for 80 percent of the fraud complaints logged with the Federal
Trade Commission.
U.S. credit card companies say all this makes
understanding ways to protect their "golden" credit records more
important than ever.
According to a recent study by the Federal Reserve,
nearly 80 percent of older Americans have credit scores of 701 or
better, and another 10 percent have scores of 660-700. The report states
that, "individuals with credit scores above 660 have scores sufficiently
high that they are likely to qualify for the lowest interest rates
available on loans."
Your Credit Card Companies urges older Americans to
take some simple steps to better understand their credit picture,
protect themselves from identity theft and credit card fraud, and
practice online safety.
Understanding Your Credit Picture
* Under the Equal Credit
Opportunity Act, it is illegal for creditors to
deny credit or terminate
existing credit lines simply because of age.
* Know your credit history and
your credit score. Lenders determine
credit worthiness through a
combination of objective scoring factors
and by analyzing a person's
history of having paid his or her bills on
time. Older Americans should
check once a year with the three major
credit bureaus -- Experian,
Equifax, and Trans Union -- to review their
credit histories and scores and
should work with the bureaus to fix any
errors.
* Since retirees may have fixed
incomes, or fluctuations in their income
due to changes in investments,
pensions and Social Security, they
should keep in mind what they
can afford when applying for and spending
on credit.
* Track monthly spending. Design a
reasonable monthly budget and do your
best to stick to it. Track
actual expenses as they are incurred.
Notice whether you're spending
more than you budgeted, and reduce your
spending where you can.
Protect Yourself From Theft and
Fraud
* Never give personal information
to a stranger, especially your Social
Security number, birthday, bank
account number, credit card number or
address. Identity thieves can
use this information to make purchases in
your name.
* Reject offers from companies
that require you to pay an up-front fee to
get approved for a credit card.
This is the number one type of credit
card scam, according to the
Federal Trade Commission. Legitimate credit
card companies, including the
members of Your Credit Card Companies, do
not require an up-front fee to
obtain a credit card.
* If you think a deal is too good,
it probably is. When offered with a
deal to get credit for a fee or
to repair your credit overnight, the
offer is most likely fraudulent.
* If you receive a credit offer
you think seems questionable from
unsolicited mail or a
telemarketer, check with your local Better
Business Bureau at
http://www.bbb.org or the National Consumer League
National Fraud Information
Center at
http://www.fraud.org. These
companies keep tabs on
unscrupulous organizations.
Online Safety
* Consumers should be alert for
"phishing" scams. This new cybercrime
occurs when scammers pretending
to be legitimate businesses email
consumers, asking them to either
respond to the email or visit a Web
site where they are asked to
"update" their private information. Be
aware that requests for personal
information such as a user ID, account
number or password are usually
fake. Consumers should not respond to
them, but rather delete the
email. Your Credit Card Companies members
do not request this type of
information by email.
* Create passwords that are easy
to remember, but difficult for
"outsiders" to guess. Mix
letters and numbers, avoid using birthdays
and Social Security numbers. Use
a different password for financial-
services Websites and
transactions than for other accounts. Change
passwords regularly.
* Deal only with companies that
post their privacy policies on their Web
site. Reputable companies should
prominently display their policies
before asking for credit card or
other personal information.
What to Do If You Think You Have
Been Scammed
* Immediately contact your
financial institution. Alert them that you
have been a victim of identity
theft or credit card fraud. Have them
cancel current credit cards and
send you new ones. This will also
protect consumers from being
liable for purchases. Customers of Your
Credit Card Companies member
companies are not liable for any charges
incurred as a result of
fraudulent activities.
* Contact any one of the three
major credit bureaus -- Experian, Trans
Union, and Equifax -- and
request that a fraud alert be placed on
credit reports. Credit reports
can also be requested through these
phone numbers. The credit
bureaus' phone numbers are:
-- Equifax - 1-800-525-6285
-- Experian - 1-888-397-3742
-- Trans Union - 1-800-680-7289
* File a complaint with the FTC.
The FTC maintains a database of identity
theft cases used by law
enforcement agencies for investigations. Filing
a complaint also helps the FTC
learn more about identity theft and the
problems victims are having.
Complaints can be filed by phone at
1-877-IDTHEFT or through the
FTC's identity theft Web site at
http://www.consumer.gov/idtheft.
* Contact local law enforcement.
In case of suspected fraud or identity
theft, also contact local law
enforcement to alert them to the possible
crimes.
Your Credit Card Companies is a group of financial
services companies with a shared commitment to value and quality service
for consumers. Through its Web site and other consumer information
initiatives, Your Credit Card Companies provides credit resources and a
variety of tools that help consumers better understand how credit works,
understand and protect their total credit picture and manage debt. Its
membership includes Capital One, Chase Manhattan Bank USA, N.A.,
Citigroup, Discover Card, MasterCard International and MBNA.
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