topic Re: Comenity denial: first party fraud in Credit Card Applications

overstock CLI?

Anonymous — Tue, 27 Oct 2020 17:17:49 GMT

I requested a CLI from overstock, as recommended by you all, after my first statement, and got this message

"We are responding to your request for a credit limit increase on your account. Unfortunately, because your credit history with other credit grantors could not be obtained we are unwilling to increase the credit limit on your account at this time."

what does this mean?

Comenity denial: first party fraud

Anonymous — Tue, 27 Oct 2020 17:24:18 GMT

I applied for overstock then victoria's secret but I do have 5 recent inquiries from an app spree. Comenity sent mail saying I received a denial for suspicion of "first party fraud", and now I can't get approved for a CLI with overstock because "We are responding to your request for a credit limit increase on your account. Unfortunately, because your credit history with other credit grantors could not be obtained we are unwilling to increase the credit limit on your account at this time." Can i call comenity and get this fraud alert removed? Is it on my credit report/how do i check? Should i just garden? I'm stressed about it since they think I want to commit fraud.

Re: overstock CLI?

AllZero — Tue, 27 Oct 2020 17:54:32 GMT

Are your credit reports locked or frozen?

Re: overstock CLI?

Anonymous — Tue, 27 Oct 2020 17:55:23 GMT

i realized i think it may be related to a comenity fraud alert. but i haven't locked or frozen any accounts. how do i know if they are?

Re: overstock CLI?

AllZero — Tue, 27 Oct 2020 18:06:51 GMT

Generally, lock and freeze is user initiated. Depending on your CMS Credit Monitoring Service, it should state it on the credit report if there is a freeze.

Re: Comenity denial: first party fraud

Curious_George2 — Tue, 27 Oct 2020 19:41:12 GMT

First: don't panic. No one likes to have the word fraud directed at them, but try to stay calm. It sounds like nothing really bad has happened yet. One denied card app and one denied CLI request are no big deal.

Second: before you take any action, I suggest going to this post, following the link @Anonymous posted to an Experian white paper on "bust-out" (aka first party fraud), and reading it. Based on what you have told us about your recent actions, you might want to ask yourself if your profile fits that of a bust-out risk. I'm not saying that to be judgmental or accusatory. Quite the opposite. That white paper had a sobering effect on me. I realized that several of the things I was doing in my new-to-MF exuberance -- adding cards, CLIs, lowering utilization -- could make me look like a bust-out risk.

Third: garden. Based on the white paper, it seems like gardening and time will eliminate the perception of risk. I doubt there's anything you (or I) can say to a creditor that will persuade them you (or I) aren't a bust-out risk. The harder someone in your situation pushes for new credit, the stronger the creditor's suspicions might grow.

So that's my advice: relax, read the white paper, garden. You should be fine once some time passes. Thanks for sharing your experience, and good luck!

(edited to fix typo)

Re: Comenity denial: first party fraud

Anonymous — Tue, 27 Oct 2020 19:12:37 GMT

thank you so much for all your good info!! i'll read it now!!! i appreciate it!

Re: Comenity denial: first party fraud

Remedios — Tue, 27 Oct 2020 20:42:49 GMT

@Anonymous wrote:
I applied for overstock then victoria's secret but I do have 5 recent inquiries from an app spree. Comenity sent mail saying I received a denial for suspicion of "first party fraud", and now I can't get approved for a CLI with overstock because "We are responding to your request for a credit limit increase on your account. Unfortunately, because your credit history with other credit grantors could not be obtained we are unwilling to increase the credit limit on your account at this time." Can i call comenity and get this fraud alert removed? Is it on my credit report/how do i check? Should i just garden? I'm stressed about it since they think I want to commit fraud.

Are your reports frozen?

Re: Comenity denial: first party fraud

Anonymous — Fri, 30 Oct 2020 19:14:45 GMT

Not that I know of, but I'm not sure how to check. I haven't frozen anything.