Chapter 4: Consumer Rights and Responsibilities

Your Responsibilities as a Consumer
Since thieves prey on those who have not taken preventative measures, be vigilant with all of your identification and financial information. For maximum security, make safety a family affair. Limit and monitor children's access to the Internet and online transactions, have a designated person collect the mail, and establish guidelines for when telemarketers call and ask for information.

If you have children, safeguard their identity as well as your own. Some companies have mistakenly sent pre-approved offers for credit to those too young to actually have a credit card. Once your child has received one offer, he or she may very well receive others. Monitor the mail carefully and check your child's credit report to make sure there is nothing on there that is fraudulent.

Unfortunately, even when you have done all the right things, you may still be a victim of identity theft. While consumer protection laws give you rights, it is your responsibility to take action if fraudulent activity occurs.

If someone has used your identity or financial information, it is imperative that you act swiftly and treat the matter seriously.

• The Fair Credit Reporting Act (FCRA) ensures that the financial data contained in your credit report is correct and private. Only those with a need recognized by the FCRA may access your credit report - usually a creditor, insurer, landlord, or other business. While current and prospective employers may pull your report, you must give them written permission to do so. It is the credit reporting agency's responsibility to report only accurate information, so if you discover a false item, file a dispute. The credit reporting agency has 30 days to investigate your claim, during which time a notice of dispute will appear on your report.
  
  
• The Fair and Accurate Credit Transactions Act ammends the FCRA. It ensures that:
  • Consumers may receive a free copy of their credit report once a year
  • Consumers may receive additional free reports if identity theft is suspected
  • Identity theft victims who file police reports may block fraudulent information from appearing on their credit reports
  • Identity theft victims have access to business records that list an identity thief's fraudulent transactions
  • Credit reporting agencies must ensure that all credit requests are legitimate after a credit report has been flagged for suspected identity theft
  • Active duty military personnel may place special alerts on their files when they are deployed overseas
  • Only the last five credit card number digits may be listed on store receipts
    
    
• The Fair Credit Billing Act provides a legal dispute process that can help with fraud committed on open-end credit accounts, such as credit cards and department store accounts. The FCBA settlement procedures apply only to disputes about billing errors. In relation to identity theft, it limits your responsibility for unauthorized charges to $50 and stipulates that you won't be charged for goods and services you didn't accept or weren't delivered.
  
  
• The Fair Debt Collection Practices Act ensures that if you have been a victim of identity theft, and a debt that you did not accrue has gone to a collection agency, you have rights. You may write to the collector within 30 days of receiving notice of the fraudulent debt. The collection agency will conduct an investigation, during which time the collector must cease communication. If the debt is determined to be accurate, though, collection activity will resume.
  
  
• The Electronic Fund Transfer Act protects your ATM, debit card, or other electronic debit transactions. It also limits your liability for unauthorized electronic fund transfers. You may have additional protection if your ATM/debit card has the VISA or MasterCard logo on it. In most instances your liability for unauthorized use is $50 per card, no matter how much time has elapsed since the discovery of the loss or theft. Report lost or stolen ATM and debit cards immediately, since the amount you can be held responsible for is time sensitive:
  • If you report loss or theft within two business days, your liability is limited to $50
  • If you report loss or theft after two business days, but within 60 days after a statement showing an unauthorized electronic fund transfer, you can be liable for up to $500
  • If you wait more than 60 days, you could lose all the stolen money
    
    
• The Identity Theft Penalty Enhancement Act increases existing penalties for the crime of identity theft. Aggravated identity theft (the use of a stolen identity to commit crimes) is a criminal offense and carries mandatory penalties.