I received a store card that I did not request. Should I cancel it?

Key takeaways

• If you received a store credit card that you didn’t sign up for, that means someone else probably signed you up without your permission.

• Issuing a card without your authorization violates the Truth in Lending Act and is considered fraud.

• You should cancel the card immediately and take steps to protect your finances, such as removing the card information from your credit reports and checking your other credit card accounts for signs of fraudulent activity.

Retailers usually have sales and promotions during the holiday shopping season, and sellers often try to sell you their products. store cards as a means of financing these transactions. But what happens if you signed up for a store card without your knowledge?

If you receive a store credit card that you didn’t apply for, you should start by examining the card closely. Sometimes stores and issuers send promotional cards that purport to look like real credit cards to encourage consumers to register.

If you’re sure the card is real, you’re probably facing one of two scenarios: either someone – like perhaps that pushy salesman – signed you up for a card without your permission, or someone registered in a store. credit card by stealing your identity.

Either way, you’ll need to take steps to resolve the issue quickly, starting with understanding your rights as a consumer.

Truth in Lending Act Protections

A retail store or any card issuer cannot issue you a card without your express authorization, in accordance with Truth in Lending Act (TILA). Issuers can only approve you for a card if you have made an oral or written request or applied for the card. However, they can issue you a card without your express authorization when the time comes to renew your current card or if you need to replace an existing card.

Examples of In-Store Credit Card Fraud

There have been cases of Consumer Financial Protection Bureau (CFPB) receiving complaints from consumers claiming to have received store cards in the mail even though they had declined offers to open these accounts at the store or by telephone.

This can happen if you share personal information, including your Social Security number (SSN), with store staff and they decide to sign you up for a card. They could have obtained this information from you for another reason and then used it to approve you for the card without your knowledge. This type of misuse of information violates TILA and is considered fraud.

But there’s also another reason you may have gotten a store credit card that doesn’t involve an employee. If someone stole your identity and uses it to open credit accountsyou could have received a store credit card that the thief signed up for. Identity theft is a serious problem and also constitutes fraud.

Keep in mind: If you declined to sign up for a credit card at the store and a sales associate still wants to know your Social Security number, that’s a red flag. Store employees don’t need this information, especially if they just want to sign you up for a loyalty card, which only gives you special promotions.

What to do with the store credit card you didn’t sign up for

Now that you know what types of fraudulent situations you might face, you can deal with that unsolicited store credit card. Here are some general steps that may help:

1. Cancel the card

To get started, call the issuer and ask them cancel your credit card. If you are unsure who the credit card issuer is, contact the store. Be careful not to disclose personal information, such as your SSN, to anyone recovering.

Take notes during your calls and request that proof of your cancellation request be sent to you by email.

Ask the issuer not to report information about this account to credit reporting agencies either. You should also let them know that the card was issued to you fraudulently.

2. Have the inquiry and information removed from your credit reports

Because you didn’t sign up for the card, you want to make sure it doesn’t hurt your credit score or add fraudulent information to your credit report. THE three credit bureaus — Equifax, Experian and TransUnion — allow consumers to file disputes and have incorrect information removed, but they each have a different process for doing this. Visit the websites of each credit bureau and follow the dispute process with each if the card information appears on your report.

3. Report fraud to the CFPB

The CFPB actively investigates consumer issues related to credit cards, including fraud. You can file a complaint on their website.

4. Check your credit report for other issues

Check your credit report periodically until the fraudulent information has been removed. Additionally, you should also start clean your credit reports and audit your accounts. You are legally entitled to free weekly credit reports from each of the three major credit bureaus, and you can obtain these reports by visiting the government-run website. Annual Credit Report.com.

When you receive your credit reports, review them carefully to make sure they do not contain any other incorrect information. As an added measure, you can also freeze your credit reports so that no one can view them or apply for new lines of credit using your information. Credit Monitoring Services are another way to keep tabs on your reports. This is especially important if this store credit card was issued to you due to an identity theft issue.

To be on the safe side, you should check your other accounts and make sure no fraudulent transactions have taken place recently.

The essentials

A store cannot issue you a card without your authorization. However, store personnel may use the information you provide without explicitly informing you that you are applying for a store card. Identity thieves can also sign up for store credit cards using your information.

If this happens to you, cancel the card and have its information removed from your credit reports by filing disputes. If you are a victim of identity theft, you should also take additional steps to ensure the safety of your finances, such as freezing your credit reports and reviewing your recent transactions. You can also file a complaint with the CFPB.