Convenience Checks

[Dawn]

Has anyone ever had any problems with unauthorized individuals using any credit card convenience checks that were mailed to them?

I've started receiving them in between statements when I'm not expecting any mail ... and our mail service is so poor, I never know when my mail is going to be delivered to someone else. 

If someone else gets their hands on these unexpected checks and successfully uses them, is it as easy to claim unauthorized use with these as it is if someone gets your actual credit card number and uses it?

[Anonymous]

If the amount is large enough, Chase (I assume you're referring to Chase) will call you and verify that you "recognize" a particular check.  A few days after I purchased a car with a convenience check, I did receive a phone call from Chase asking me if I "recognized" a check for $XX,XXX made out to XXXXXX Honda. 

Message Edited by psychic on 02-09-2008 07:07 AM

[Anonymous]

Heh, in the process of going after promo BT rates, DH travels for business a lot, I signed a BT check for an account where I am not an AU nor joint. The bank called him because the signature didn't match anything they had on file, DH asked for the amount and to whom it was written and was able to authorize/confirm it on the spot.

This was MBNA, pre-BOA.

Message Edited by PenguinGeek on 02-09-2008 10:04 AM

[Dawn]

PenguinGeek wrote:

.... signature didn't match anything they had on file, DH asked for the amount and to whom it was written and was able to authorize/confirm it on the spot.

Hmmmm ... I wonder what kind of signature file they have when you applied for the card online?  Do they maintain images of any receipts we actually signed with purchases?  Like those would really be identifiable ... I don't recognize my own signature when I sign on one of those electronic signature card things. 

[Dawn]

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psychic wrote:

If the amount is large enough, Chase (I assume you're referring to Chase) will call you and verify that you "recognize" a particular check. 

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I wonder what a large enough amount is?  I will call them later to find out what kind of standard security measures they have in place when those checks are used.  Having them sent at unexpected times still makes me nervous.

[haulingthescoreup]

BofA keeps sending these to DH, every single month, midway through the billing cycle. Nothing we can do; they claim there's no way to stop their being mailed. Uh-huh.

[Dawn]

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haulingthescoreup wrote:
BofA keeps sending these to DH, every single month, midway through the billing cycle. Nothing we can do; they claim there's no way to stop their being mailed. Uh-huh.

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If that is true .. I think it is time for a consumer uprising ... there outta be a law ... kinda like not sending out unsolicited cards.   

Chase has an option to actually order convenience checks online.  Seems like they could also give you an option to not receive them unless you specifically request them.

[RobertEG]

I believe federal law requires that if you request an "opt-out" from unsolicited credit inquiries, they are prohibited from sending you unsolicited offers.  I am not sure if this applies to existing accounts, however.  I will check this out and get back to you.....

[Anonymous]

RobertEG

I am opted out and I continue to receive convenience checks.

The opt out rules don't apply to existing accounts.

[RobertEG]

Here is the legal poop.

2003 Changes to the Fair Credit Reporting Act: Important Steps Forward at a High Cost

With passage of HR 2622, the Fair and Accurate Credit Transactions Act, Congress significantly amended the Fair Credit Reporting Act (15 USC 1681 et seq.), which provides consumer protections regarding the use, accuracy and privacy of consumer credit reports. This law, originally passed in 1970, ensures that consumers have access to information about them that lenders, insurers, and others obtain from credit bureaus and use to make decisions about providing credit and other services. Amendments passed in 1996 provided new consumer rights to improve accuracy of reports, but in exchange for these increased consumer rights, states were temporarily preempted from passing stronger protections in a few specific areas of the law. Those preemptions were scheduled to expire on January 1, 2004, which thrust this important law into the spotlight in 2003 as industry lobbyists sought to make those preemptions permanent.

The changes to the Fair Credit Reporting Act passed by Congress make some improvements for consumers to increase the accuracy of credit reports, prevent identity theft, and restrict the marketing of financial products using sensitive information that is shared with affiliates.

However, the changes to the FCRA do not permit an opt-out of marketing offers from those with whom then have existing accounts, or from those with whom they had a pre-exisiting account within the last 18 months.  Further, the FCRA now prohibits states from enacting legislation restrict such marketing.

The national credit bureaus offer a toll-free number that enables consumers to opt-out of all pre-approved credit offers or marketing from all those other than existing accounts or those in which there was a pre-exisitng relationship within the last 18 mnths. with just one phone call. Call 1-888-5-OPTOUT (1-888-567-8688) for more information.