Many times the items being reported to your credit bureau may be inaccurate. To help consumers protect their credit bureau reports, there are federal laws that can help in disputing negative items and restoring a consumer’s good name. Two of these laws are The FCRA and FACTA.

The FCRA is short for the Fair Credit Reporting Act. The FCRA protects you as a consumer in the event erroneous information is placed on your report by holding the credit agencies responsible for reporting accurate information. The FCRA, passed in 1970, provides consumers with certain protections which include the ability to request a copy of your credit report, dispute negative items on your report, and notification if a removed item has been re-entered into a consumers report. The list I have provided is a few of many rights that a consumer has under The Fair Credit Reporting Act.  To take advantage the Fair Credit Reporting Act it is important to stay on top or your credit rating by monitoring your credit on a consistent basis.

FACTA also known as Fair and Accurate Credit Transaction Act holds credit organization responsible for the way a consumer’s information is handled. This law was put in place to curve the rise of identity theft. The guidelines set by FACTA ensure that certain documents such as personal information are shredded by any organization that handles sensitive personal information.  FACTA also allows consumers the right to receive at least one free credit report per year.  In some states like Georgia the limit is 2 free reports per year.

These two important acts were put in place to give consumers a course of action to take in the event their credit information is ever compromised.  Surprisingly many people are not aware of these laws place in the books to protect them. Taking advantage of FCRA and FACTA is as simple as getting a free copy of your credit report.  If you have been a victim of Identity fraud and or you are having trouble disputing items on your credit report, you may want to review these acts to understand your rights.  Another option is to hire a reputable credit attorney to work in your favor to take advantage of your rights under the guidelines of these laws.

Ignorance of the law is not an excuse, especially when the law was put in place to aid and assist you.  To minimize your risk and maximize your safety, you should educate yourself on the benefits of the FCRA and FACTA.  It is also a wise decision to keep some form of identity protection and credit monitoring service.

After all, what’s to stop the waiter from writing down your credit card number and placing orders on the phone with it later?

And research shows that the rate of fraudulent purchases made by cell phones is much higher than credit card fraud on the Net.

Nevertheless, we encourage you to take precautions when giving out any confidential information (including your credit card number) over the Internet, over the phone… or anywhere else for that matter!

Always use common sense — it is the best rule of thumb.

Nonetheless, we’ve created 21 tips to protect yourself from credit card fraud — which you’ll find below.

Internet ScamBusters’ 21 Credit Card Fraud Prevention Tips:

1. Keep an eye on your credit card every time you use it, and make sure you get it back as quickly as possible. Try not to let your credit card out of your sight whenever possible.

2. Be very careful to whom you give your credit card. Don’t give out your account number over the phone unless you initiate the call and you know the company is reputable. Never give your credit card info out when you receive a phone call. (For example, if you’re told there has been a ‘computer problem’ and the caller needs you to verify information.) Legitimate companies don’t call you to ask for a credit card number over the phone.

3. Never respond to emails that request you provide your credit card info via email — and don’t ever respond to emails that ask you to go to a website to verify personal (and credit card) information. These are called ‘phishing’ scams.

4. Never provide your credit card information on a website that is not a secure site.

5. Sign your credit cards as soon as you receive them.

6. Shred all credit card applications you receive.

7. Don’t write your PIN number on your credit card — or have it anywhere near your credit card (in the event that your wallet gets stolen).

8. Never leave your credit cards or receipts lying around.

9. Shield your credit card number so that others around you can’t copy it or capture it on a cell phone or other camera.

10. Keep a list in a secure place with all of your account numbers and expiration dates, as well as the phone number and address of each bank that has issued you a credit card. Keep this list updated each time you get a new credit card.

11. Only carry around credit cards that you absolutely need. Don’t carry around extra credit cards that you rarely use.

12. Open credit card bills promptly and make sure there are no bogus charges. Treat your credit card bill like your checking account — reconcile it monthly. Save your receipts so you can compare them with your monthly bills.

13. If you find any charges that you don’t have a receipt for — or that you don’t recognize — report these charges promptly (and in writing) to the credit card issuer.

14. Always void and destroy incorrect receipts.

15. Shred anything with your credit card number written on it.

16. Never sign a blank credit card receipt. Carefully draw a line through blank portions of the receipt where additional charges could be fraudulently added.

17. Carbon paper is rarely used these days, but if there is a carbon that is used in a credit card transaction, destroy it immediately.

18. Never write your credit card account number in a public place (such as on a postcard or so that it shows through the envelope payment window).

19. Ideally, it’s a good idea to carry your credit cards separately from your wallet — perhaps in a zippered compartment or a small pouch.

20. Never lend a credit card to anyone else.

21. If you move, notify your credit card issuers in advance of your change of address.

If you suspect credit card fraud:

If your credit cards are lost or stolen, contact the issuer(s) immediately.

Most credit card companies have toll-free numbers and 24-hour service to deal with these emergencies — they are eager to avoid credit card fraud.

According to US law, once you have reported the loss or theft of your credit card, you have no more responsibility for unauthorized charges. Further, your maximum liability under federal US law is $50 per credit card — and many credit card issuers will even waive that fee for good customers.

If you follow all these tips, it will go a long way in protecting you from credit card fraud.

Be Bold!

Herschel