Subject: misc.consumers FAQ on credit part 3 of 4 Newsgroups: misc.consumers,news.answers,misc.answers From: adams@spss.com (Steve Adams) Date: Sat, 19 Feb 1994 19:44:05 GMT Archive-name: consumer-credit-faq/part3 Last-modified: 19 Feb 1994 This FAQ (Frequently Asked Questions) list should be a repository of the canonical "best" answers. If you know a better answer or a change that improves an answer, please tell me! (Use email, please. Traffic in this group is high, and I might miss a relevant posted article.) Steve Adams, SPSS, Inc., Chicago, IL, USA adams@spss.com Because this list is quite long, I am posting it in four parts: part 1 of 4: detailed contents and introduction part 2 of 4: credit cards part 3 of 4: credit cards continued (this file) part 4 of 4: credit reports Please read the disclaimers, acknowledgements, and general information in part 1. (The most important disclaimer is that I am not a lawyer and this file is not to be construed as legal advice.) Some helpful free pamphlets are available from the FRB. You can write to Board of Governors of the Federal Reserve System, Publications Services, MS-138, Washington DC 20551 for these among others: - How to File a Consumer Credit Complaint - Consumer Handbook to Credit Protection Laws The phone number is (202) 452-3244 in case they accept phone orders. See part 1 of this FAQ list to obtain a catalog of FRB publications, including many on home-equity loans and other home mortgages. section 4. When you buy with a credit card ========================================== Murphy's Law has free play in credit matters. Here are some common problems and how to avoid them (if you can) or resolve them (if you must). Q401. Is it better to pay by check or by credit card, as a rule? In general, it's better to use a credit card. When you pay by credit card, the U.S. Fair Credit Billing Act gives you a lot of protections (see section 5, "Billing errors and overcharges"). These safeguards don't apply if you pay by check or by debit card. However, be aware that credit-card debt is about the most expensive legal kind there is. With banks paying as low as 3% on savings (as of January 1992) but charging 19% or more on credit-card balances, it makes sense never to carry a balance past your grace period. Household budgeting is beyond the scope of this FAQ list. But always bear in mind that if you're paying by check because your credit cards are maxed out, you may well be overextended and may want to think about deferring major purchases. Even if your cards aren't maxed out, if you're carrying a balance from month to month you are paying dearly for the privilege. Q402. When I make a purchase, can they ask for my address or phone number? This is a complicated question. There are two possible sources of an answer: Federal and state law, and the policies of the card-issuing organization. Law: There is no Federal law on the subject. According to Bankcard Holders of America, the laws of CA, DE, GA, MD, MN, NJ, NV, and NY prohibit recording personal information in connection with credit-card transactions. Note the word "recording": strictly interpreted, this means they can ask you to show a driver's license but can't write anything down from it. Policy: According to letters from Director of Public Affairs and Visa USA Inc. MasterCard International P.O. Box 8999 888 Seventh Avenue San Francisco, CA 94128-8999 New York, NY 10106 merchants are not allowed to refuse a sale made by Visa or MasterCard solely because the customer refuses to provide additional personal information. According to Bankcard Holders of America, the same is true when you use your American Express card, but not when you use Discover. If merchants have "sufficient" reason to suspect you are not the authorized card holder, they may ask for further ID. This exception rarely comes up in real life, and even if it does they must not write the information on the Amex, Visa, or MC charge slip. Q403. If it's against the rules, why do merchants insist on address or phone number? Don't rule out ignorance: many merchants don't know the rules. They may think (wrongly) that getting extra information from you will protect them somehow. The truth is that if they follow the procedures of the credit-card company, they will get paid, period. On the other hand, some merchants are deliberately flouting the rules and depending on you to acquiesce. Why? Because they can sell your address or phone number, or add you to their in-house list of sales prospects. Don't accept the old wheeze about "in case there's a problem." If the merchant follows proper procedures at the time of sale, there won't be. If you leave your card behind they can send it to the the card issuer, who will return it to you. Q404. What should I do when asked for personal information I don't want to give? See also "Is there any official document" and "Where should I report merchants who break the rules?" later in this section. If you don't see what all the fuss is about, please skip this Q. Note the key words, "information that I don't want to give." The most effective response is to ignore the request. When they say, "I need your signature and phone," simply sign in the proper place and hand them the charge slip without your phone number. Don't comment on the request in any way. More often than not, they won't follow up. If they do notice that you didn't put down the personal information, and ask you again for it, simply say quietly "I don't give that out." Almost all the time, the clerk writes down something like "refused" and that's the end of it. If they still insist, you have to decide how important it is to you to make a point. If you don't much care, give them what they want so you can get back home. If (like me) you're a privacy fanatic, you can do one of several things. (1) Point out that Visa and MasterCard rules don't allow them to require this information and wait to see what they do. Typically the clerk calls the manager to "authorize" the sale, which she does right away. (2) Or you can say "Fine: if you can't make the sale without this information, give me a credit slip and keep the merchandise." (Since the sale has already gone into the register they probably won't call your bluff. They've never called mine. If they do, get a written credit slip unless you're sure that the transaction has not already been processed electronically.) (3) Or you can make up a phone number. Please use one beginning with 555 so that some innocent person doesn't get sales calls. (4) Or, if you happen to know the number of the store it's always a nice touch to give them that. In all this, be firm but pleasant and quiet. Don't raise your voice, but if this is important to you then don't let yourself be bullied either. After all, this is America and you can almost always get equivalent merchandise from another store. Q405. I tried to charge a $10 item but the merchant pointed to a sign "minimum charge $20." Is this valid? Never for Visa and MasterCard; generally not for American Express. Discover explicitly allows the merchant to set a minimum purchase amount, according to email received by the previous editor. MC and Visa rules provide that a merchant may not require any minimum purchase amount. This is the merchant's agreement with Visa or MasterCard; it is not a Federal law. (On the other hand, if you insist on charging a 79-cent ball point pen, I hope you get four flat tires on the way home.) According to Bankcard Holders of America, if a merchant takes American Express and also Visa or MC, Amex doesn't let the merchant impose a minimum purchase on Amex users because that would discriminate against them. Merchants who take Amex but neither Visa nor MC may impose minimum charges but Amex officially discourages the practice. Q406. Can the merchant charge credit-card users more than cash customers for the same item? In a word, maybe. In a few more words, probably, if the merchant goes about it the right way. The Federal Truth-in-Lending Act prohibited surcharges on credit- card purchases until 1984; since then, there has been no Federal law on that subject. (Other provisions of the law are still in force.) The states of CA, CO, CT, FL, KS, MA, ME, NY, OK, and TX have laws against surcharges, according to Bankcard Holders of America. Discover allows surcharges on credit-card purchases, except in the above states. Visa and MasterCard prohibit them. American Express discourages them in general, and specifically prohibits them by merchants that also take MasterCard or Visa because Amex doesn't allow merchants to discriminate against it. There is a loophole: merchants are allowed to give cash discounts. This means in practice that they can't charge you more than the labeled price if you pay by credit card, but they can charge you less if you pay cash. Some companies announce (usually in tiny print in the catalog) that all prices "reflect cash discount" of x% so credit-card users must pay x% more than the stated price; this may be legal but it certainly violates the spirit of the law or the regulations. I don't know about the "service fee" charged credit- card users for things like ordering tickets over the phone, but they're certainly not allowed to charge you a higher price in person than if you pay cash. The other loophole, according to Bankcard Holders of America (BHA), is this. Certain government agencies are by law not allowed to pay "discount fees," which are the processing fee the bank charges merchants for handling credit-card slips. Since the banks won't handle these for free, if your state lets you pay license fees by credit card you may well have to pay a surcharge for the privilege. However, BHA says that there are no exceptions for retail merchants. Q407. I made a hotel reservation, and guaranteed it with my credit card. When I showed up, the hotel denied my reservation. Have I any recourse? That depends. Most hotels and motels (but not all) subscribe to the "Lodging Services Addendum" in their merchant agreement with Visa. If the hotel is one that participates, and they have no room for you when you arrive with a guaranteed reservation, their agreement with Visa requires them to: - Provide the cardholder with at least comparable accommodations for one night at another establishment. - Provide transportation for the cardholder to that establishment. - If requested, allow the cardholder to make a 3-minute local or long distance call. - If requested, forward all messages and calls for the cardholder to the alternate establishment. (source: Lodging Services Addendum to Visa agreement of First Bank System, as quoted in a Usenet posting) However, your unsupported word is not exactly proof that you had a reservation. Next time, write down the date and time you called, the rate you were quoted, which credit card you used for the guarantee, and the confirmation number. (You may have to ask for a confirmation number.) You need that info if there's a problem with your reservation, or if your plans change and you have to cancel. Some state laws may protect you when you have a guaranteed reserva- tion, whether you guaranteed it by a deposit or by credit card. Q408. I paid by check, and the merchant wrote my credit-card number on the back. If the check bounces, can the merchant charge my card? The answer to this one boils down to "There are two kinds of prevention, and an ounce of either is worth a pound of cure." First, in CA, DE, FL, GA, IA, IL, KS, MD, MN, ND, NJ, NV, NY, OH, VA, and WA it's illegal for merchants even to write your credit-card number on your check, so don't let them do it. (Note: In Illinois, they can request a look at your card, but can't write the number on your check. They CAN write the type of card and expiration date) Source: Bankcard Holders of America. (I understand some banks are tying check guarantees to their credit cards. I don't know whether that's legal in the above states, but it seems to be a bad idea. If my bank did that, I would question them closely about the potential for fraud in using the same number for my credit cards as for check guarantees. Giving someone your credit- card number with your name and address -- possibly even your phone number -- on a printed check is an open invitation to scam artists.) Second, In states other than those listed above, the merchant has the legal right to refuse the sale if you refuse to give the informa- tion. However, Visa, MasterCard, and American Express all forbid merchants to charge a credit-card account to cover a bounced check, or to use card numbers to locate a customer whose check bounces. Since the merchant can't do anything legitimate with the card number, and since providing it makes you a possible victim of fraud, you should politely decline. One possible compromise, if you're at an impasse, would be to show the card with your name on it, but to cover up all or part of the card number and to insist that no part of the number be written down. Source: Bankcard Holders of America. (The situation may be different if your credit card is also a check-guarantee card; see the preceding paragraph for cautions.) Nearly 90% of bounced checks are due to consumers' math errors in balancing their checkbooks. Despite this, the law in some states is that if you bounce a check it is assumed to be deliberate unless you can prove otherwise, and deliberately bouncing a check is a crime in every state. It's better never to get into this hassle than to deal with it after the fact. If you've got credit cards, why pay by check at all? (See "Is it better to pay by check?" earlier in this section.) If you do pay by check, don't give a credit-card number. And if you bounce a check, don't make the merchant come to you but go to the merchant immediately to make things right. Give the merchant a good check (probably a cashier's check) or cash for the amount of the purchase, and expect to pay a reasonable fee to the merchant in addition to your bank's fee. Q409. Can mail-order merchants charge my card before they ship? According to Janet Hug of Visa USA, "a merchant is not permitted to bill ahead of time" except in case of a deposit or down payment that the customer agrees to. (phone call from Visa USA, 12 May 1992) MasterCard said in a letter that a merchant can charge you before shipment only if s/he tells you and you agree to "the terms and conditions of the sale." American Express said the merchant can charge your card as soon as you give your account number; but if you receive the bill before the merchandise, call Amex customer service and you don't have to pay while they investigate. (phone call to Amex, 16 May 1992) Q410. Is there any official document that I can take with me to show merchants who violate the rules? Yes, the Bankcard Holders of America includes a wallet-sized Consumer Action Card with its pamphlet #14, "Consumer Rights at the Cash Register." For a copy, send $3 to BHA, 560 Herndon Parkway suite 120, Herndon VA 22070, or call (703) 481-1110 (their 800 number is no longer in service) and ask for a catalog. The card gives you something to show the merchant who won't believe your unsupported word. The card has no legal force, but at least you don't look like you're making things up. The pamphlet does the same thing, but an 11"x17" piece of paper gets kind of bulky folded in your wallet! Also see the pamphlets mentioned at the beginning of this file, which are issued by the Federal Reserve. That should be official enough for any merchant. Q411. Where should I report merchants who break the rules? If merchants violate any of the above laws, you can report them to your state's or city's consumer protection office or attorney general. If they violate any rules of American Express, the company would like to know about it. Report violations of Visa or MasterCard rules to the bank that issued your card; if the sale was completed, and you can also send a letter with a copy of the charge slip to the Visa or MC address given earlier in this section. Q412. Does my payment have to reach the lender by the "due date" on the bill, or is it enough if I just mail it by the due date? That's a good question, and the answer varies. The Uniform Commer- cial Code says that a bill is considered paid on the postmark date of the payment, but many states have different laws. Even in states where the bill is considered legally paid on the postmark date, you may find that lenders will consider it paid on the date they process it. My personal practice is to avoid hassles by always mailing payment a reasonable time before the due date. Even if I could push it legally, I don't believe the couple extra days of "float" is worth the aggravation of fighting with the lender over this point. Q413. I have a checking or savings account at the same bank as my Visa or MasterCard. Can the bank freeze my account or take money from it if I miss a payment on my credit card bill? Probably yes. You should check your cardholder agreement. The typical agreement gives the bank the right to take the money in any of your accounts with them if you are delinquent on your bill. Even if there's not such a provision in your cardholder agreement, it's probably buried somewhere in the fine print that governs your deposit account. However, the Fair Credit Billing Act does not let them take any collection action at all if you have properly notified them of a dispute; see section 5, "Billing errors and overcharges." section 5. Billing errors and overcharges ========================================= The U.S. Fair Credit Billing Act governs credit billing, and gives savvy consumers a lot of leverage when they are treated unfairly. Q501. What kind of problems am I protected against? The Fair Credit Billing Act protects you from honest errors and outright fraud by merchants when you make the purchase through a bank credit card. These include - billing errors - charges for goods ordered but never shipped - charges higher than agreed - charges for goods not shipped as ordered - charges for products that don't work as represented - charges for unsatisfactory services and similar kinds of problems. Q502. There's an error on my bill. What should I do? The instructions are printed on your bill, probably on the back. Just follow them. The rules are simple: if you report a problem in writing within 60 days of the billing date, the bank must investigate it and respond to you within 30 days. While they are investigating, you don't have to pay the disputed amount or any finance charges on it. If their investigation shows the item was correct, they can restore finance charges retroactively and you will have to pay them. The address to write to is on the bill. Look for a heading like "In case of error" or "Send inquiries to." Some banks try to resolve problems over the phone; others insist that you write a letter. If you decide to call before writing, make sure you note the date and time of the call, whom you talked to, and what s/he promised to do (if anything). Then send a letter to the "Send inquiries to" address mentioning this information. (Your letter should make clear that you are confirming a telephone conversation, so that the bank doesn't try twice to resolve the same problem.) If you resolve a problem by phone, but the bank doesn't follow through, the confirming letter that you sent will preserve your rights. Q503. I got ripped off by the merchant. What should I do? This is any situation listed at the beginning of this section, except billing errors. Fortunately, the U.S. Fair Credit Billing Act gives you strong protection if you used a credit card. Because this comes up so frequently, and people are understandably emotional when they think they've been cheated, I've divided up the answer into several pieces that follow. The legal language is on the back of your bill, under "Special rule for credit card purchases." Q504. Exactly which purchases qualify under the Fair Credit Billing Act? You are protected if all of the following are true: - The purchase was made with a credit card. (If it was a debit card, the money is already gone from your account and the bank won't get involved.) - The amount charged is more than $50. (The amount in dispute could be less, for example if you bought a $90 lamp but were billed $100. The amount in dispute is $10.) - You made the purchase somewhere in your home state, or within 100 miles of your mailing address. (I am not an attorney, but my understanding is that if you are having goods shipped to you by mail or phone order, the place of purchase is the address you are having them shipped to.) If some of the above are not true, you are still protected if the credit-card company owns or operates the merchant, or the credit- card company mailed you the advertisement for what you bought. In that case your purchase is covered by the rules no matter where you bought or how much you paid. In addition, you MAY successfully protest charges outside of these parameters, but there is no legal requirement for the credit card company to do so. Q505. Will the bank get involved right away? No. Under the law, first you must try "in good faith" to resolve the problem directly with the seller. Q506. What does resolving a problem "in good faith" mean? "In good faith" is not defined in the law, but in practice it means that you act like a reasonable person and the merchant is expected to act reasonable too. At a minimum you should talk to the merchant's customer service department and send a follow-up letter. You have to allow the merchant a reasonable time to respond. What's reasonable? Depends on circumstances. Enough time for mail to go both ways, plus a couple of working days. "In good faith" also means that you act promptly. Don't wait three months after the charge shows up on your bill to complain that you never got what you ordered. Back orders are a frequent problem. If the merchant tells you the stuff is back ordered, you have the right to cancel the order. (If it's mail order, they're supposed to give you a postage-paid reply card for this.) Then you can tell the merchant you don't want to wait and ask for the charge to be cancelled. This may not happen the same day, but it should be reasonably prompt. Wait a few days and call the bank to see if the credit has come through yet. Q507. Any other hints for dealing with a problem merchant? Most important, remember that the person you are talking to is probably not the person who caused the problem. Don't yell. (In a letter, don't use lots of capital letters and don't run on at great length.) Don't sound crazy or make threats. Lots of good people work for bad companies. Lots work for good companies that make an occasional mistake. You may be lucky and deal with one of them. If your approach is "You dirty rotten so-and-so" you probably won't get anywhere. If your approach is "There's a problem here; can you help me?" you'll have a better chance. Be prepared with specific information before you call. Have all the paper work in hand. Make sure you can give the date ordered, what you ordered (item number and price), when you were promised the items, your credit card number, how much you were charged. Be clear about exactly what you want. A refund? a replacement? shipment by a certain date? repairs? Most people (not all) respond best if you tell them clearly and calmly what you want and if you sound reasonable. Q508. I tried in good faith, but the merchant won't budge. Can the bank help? Yes, and in fact the law says the bank _must_ help. (The banks all know this, and most will be very helpful. Don't expect a fight.) Write to the credit-card issuer and ask for a credit. (This is called a chargeback, but you don't need to use the word.) Use the same address as for billing errors--see "There's an error in my bill," earlier in this section. Make sure you give these important facts in the letter: - date you are writing the letter - your name and address, as they appear on the bill - your account number, and the statement date on the bill - Start with "I am writing about a problem with (company name). The transaction date was (mm/dd), the posting date was (mm/dd), and the transaction amount was $(amount)." - Then explain, clearly and briefly, what's wrong. - Next, state that you tried in good faith to resolve the problem directly with the merchant, but did not succeed. List dates you made phone calls and what was said by the merchant; enclose photocopies of your letters to the merchant and its response. (Don't overload the bank with this. You're showing that you acted in good faith; don't write a novel.) Q509. What does the bank do when I ask for a chargeback? The bank will credit your account and charge the amount back to the merchant. This must happen within one billing cycle, if you have done everything you were supposed to. If the merchant doesn't respond, the amount is gone from your bill forever. If the merchant disputes the chargeback, the bank has to decide who is telling the truth. If you don't like the decision, you can go to court or pursue other remedies that are beyond the scope of these FAQs. Q510. What happens to finance charges on the disputed amount? You don't have to pay them while the bank is investigating. When the bank credits your account, they are also supposed to credit your account with any finance charges that were assessed on the disputed amount before you wrote to them. They may or may not do this without further prompting from you. Again, if the disputed charge is later found to be correct, you will have to pay finance charges on it. Q511. What if I paid my bill in full before I noticed a problem? Strictly speaking, the Fair Credit Billing Act says you may not have to pay "the remaining amount due." However, I and some other consumers have found that our banks aren't quite so picky. My advice (and remember I am not a lawyer) is to follow the standard procedures for disputing a charge and simply not to bring up the issue of whether you've already paid part or all of it. Odds are, your bank won't raise that issue either. However... It's best to examine bills carefully before you pay them. If you question a charge on the 58th day, a month or more after you've already paid it, the bank is entitled to wonder if you're really acting "in good faith" as the law requires. Q512. How do I avoid problems with unauthorized charges? From the Wall Street Journal, Friday, July 17, page C1 "If you find that someone else has used your credit card number, write to the card issuer and specify that an "unauthorized charge" was made. If you don't use those words, the issuer will most likely treat the incident as a "billing error," says Ms. Butler of Bankcard Holders. There's a big difference. While a billing error must be reported within 60 days, there are no time limits for reporting unauthorized charges. Most people don't get this straight: in fact, a brochure prepared by the Federal Trade Commission and a pamphlet prepared by American Express incorrectly say that cardholders should report unauthorized transactions as billing errors--and that they have only 60 days to do so. A spokeswoman for American Express says its information came from the FTC; a lawyer for the FTC says the agency is now aware of the mistake. The most a cardholder will be liable for if someone used their card is $50, the FTC lawyer says; if the card is not used in the transaction, the cardholder won't have to pay any of it." I believe that last bit, about "if the card is not used," refers to people who find your number somewhere and place orders over the phone, where they give the number but don't have the actual card.] The article also has a useful sidebar (is that the word?) called "Preventing Crooks from Getting Your Numbers": "When traveling: "-- Ask for carbons of car rental agreement, and destroy. Don't leave rental agreement in car where thieves can get it. "-- Shred travel itineraries and ticket receipts issued by airlines and travel agents. "When at shops and restaurants: "-- Refuse to write address and phone number on credit slips, or credit card account numbers on checks. "-- Don't let clerk write your driver's license number on your check if it's the same as your Social Security number. "When using a calling card: "-- Don't use a personal identification number, or PIN, that's obvious, such as a birth date, work extension, or consecutive numbers. "-- Cover the phone with your body to prevent anyone from seeing what you dial; if you must tell an operator your account number, assume people are eavesdropping. "When at home: "-- Destroy all pre-approved credit card applications; when cleaning files, shred old statements, pay stubs, and checks. "-- Don't give card numbers to callers who say you've won a prize. "-- If monthly statement doesn't arrive on time, call the issuer immediately." section 6. Miscellaneous credit-card stuff ========================================== Q601. What do the digits in my credit-card number mean? ANSI Standard X4.13-1983 answers this question for most national systems. (Phone, gas, and department-store cards have their own numbering schemes.) I have not read ANSI X4.13, but a correspondent was kind enough to provide excerpts, which follow. The first digit is the system: 3=T&E cards, 4=Visa, 5=MasterCard, 6=Discover. The structure of the card number varies by system: - American Express starts with 37; Carte Blanche and Diners Club with 38. For Amex, digits 3-4 are type and currency, digits 5-11 are account number, digits 12-14 are card number within account, and digit 15 is a check digit. - Visa: digits 2-6 are the bank number; digits 7-12 or 7-15 are the account number, and digit 13 or 16 is a check digit. - MasterCard: digits 2-3, 2-4, 2-5, or 2-6 are the bank number, depending on whether digit 2 is a 1, 2, 3, or something else. The digits after the bank number up through digit 15 are the account number, and digit 16 is a check digit. Q602. I lost my credit card, or it was stolen. What should I do? Call the issuer right away. Somewhere in the papers that came with the card is an 800 number to call. If you can't find those papers, look on a current bill and call the "inquiries" number there. If you can't find a current bill, look up the bank's number in the phone book (or call Information) and they'll direct you how to make a report. The important thing is to move fast. Once you have reported the card lost or stolen, you are not liable for any further charges on the account. Q603. What is the 800 number for customer service? For Discover, it's (800) 347-2683, a/k/a 800-DISCOVEr. For American Express, it's (800) 528-4800 for green card, or for gold card (800) 327-2177. For Visa and MasterCard, each issuing bank handles service of its own customers. First check the obvious: the number may be printed somewhere in your bill, or on a page in the packet of stuff the card company sent you when you enrolled. Or, if it's a local bank, check the white pages of your phone book. If the bank is not local, try (800) 555-1212 (it's free) to find if the bank maintains an 800 number; many do. Alternatively, larger public libraries have banking directories and can probably give you the information at the reference desk or by phone. Q604. Why was I turned down for a credit card? See sections 7, 8, and 9 in part 3 of this list, which deal with your credit history, credit reports, and credit bureaus. Q605. Should I give my credit-card number over the phone? One big question is: did you call them or did they call you? You should never give your credit-card number to anyone who calls you. Such a call is almost certainly a scam. This is true even if (especially if) the caller claims to be from your card issuer. Anyone from the issuer who legitimately has your phone number also has the rest of your records, including your card number. If you're making a call in response to a postcard from some company you never heard of, be very wary. There have been a lot of frauds reported where the victim gave a credit-card number and found lots of unauthorized charges on the next month's bill. I'm sure that some of these "you've won a free trip, just give us your card number for the $149 processing fee" offers are legitimate: but how can you tell over the phone? Even when you place the call, to a bona fide merchant (such as a mail order company) never give your credit card out over a portable phone. Scanners that snoop on these conversations are available for a few hundred dollars at Radio Shack, and your voice can be received by one for a far greater distance than the maximum useful range of your cordless phone. Often these lines are monitored to obtain your credit card, or your vacation plans. (How do they know which house it is? They listen so often, they probably know your voice!) Of course, if you're calling an established mail-order company, giving them your card number is as safe as anything is these days! Q606. What may creditors do? Fair Debt Collection Act. Credit-card debt, like any other debt, does not give your creditors license to harass you. There is a Federal law, the Fair Debt Collection Practices Act; your state may afford you additional legal protections. The U.S. Fair Debt Collection Practices Act forbids these collection actions, among others: o The use or threat of use of violence or other criminal means to harm the physical person, reputation or property of any person. o The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader. o Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number. o The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof. o The false representation or implication that any individual is an attorney or that any communication is from an attorney. o The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment or sale of any property or wages of any person, when such action is unlawful or the debt collector does not intend to take such action. o The false representation or implication that the consumer committed any crime or other personal conduct, in order to disgrace the consumer. o Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. o The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval. o The false representation or implication that accounts have been turned over to innocent purchasers for value. o The false representation or implication that documents are legal process. o The false representation or implication that documents are *not* legal process forms or do not require action by the consumer. o Communication with debtor at unusual or known-inconvient time or place. o Communication with third parties without debtor consent. o False or Misleading Representations including + The threat to take any action that cannot legally be taken or that is not intended to be taken. + Communication or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. + The use or distribution of any written communication which simulates or is falsesly represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval. The FRB puts out a free pamphlet titled {The Fair Debt Collection Practices Act}. For a copy, call (215) 574-6115 or write to Federal Reserve Bank of Philadelphia, Public Information/Publications, P O Box 66, Philadelphia PA 19105-0066. See part 1 of this FAQ list to obtain a catalog of FRB publications. (continued in part 4) -- The opinions expressed above are those of the author and not SPSS, Inc. ---NASCAR-#7-#28-#51--- adams@spss.com Soli Deo Gloria Phone: (312) 329-3522 Steve Adams "Space-age cybernomad" Fax: (312) 329-3558