Internet Info 1994 March/Internet Info CD-ROM (Walnut Creek) (March 1994).iso/answers/misc/consumer-credit-faq/part3

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From: [e-mail] (Steve Adams)
Subject: misc.consumers FAQ on credit part 3 of 4
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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
                                                        [e-mail]

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 [phone] 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 [phone] (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 [phone], a/k/a 800-DISCOVEr.

    For American Express, it's [phone] for green card, or for
    gold card [phone].

    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
    [phone] (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 [phone] 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---
   [e-mail]         Soli Deo Gloria          Phone: [phone]
   Steve Adams        "Space-age cybernomad"       Fax:   [phone]