First Post: My Daughter got declined from Comenity for Fraud?

[Anonymous]

This is my first post, bare with me as I'm new and don't have the fancy credit cards in my post or tricked out profile yet haha. I've been lurking without an account for a few months and you all know so much I decided to join.

Sorry to bore with my intro! Sephora just released their credit card last week (a nightmare if you have a daughter who not only works in the beauty industry but in her late 20's!) She showed me a letter from Comenity denying her for the following.

1. Credit Established before 18 (yes, she has had credit before 18 due to us putting her on one of credit cards for emergencies. Also, she started College at 17, so took out loans I believe before 18.
2. Low level of authentication indicative of First Party Fraud 
3. Low Level of authenticaton indicative of ID Fraud

Also says her Behavioral Risk Score is a 449.

Now, she is always honest and I know my daughter may be shopping more than I like and learning the hard way about growing up but she has assured me she didn't lie on the application except she said she thinks she rounded up her annual income ( it wasn't much, for example if she made 18000 she put 20000, not the case here but just an example). 

We've taught her since she was young how important credit is. She always, always pays on time. I even asked for her credit report and reviewed it and see NOT ONE missed payment. Her Credit Balance to Limit ratio may be a bit more than it should be but she has never received a rejection letter that said fraud (trust me, she was crying and thought someone took her identity...she overracts at times and I know she wouldve brought this to me if it ever happened). NO derrogatory accounts but she did have a credit card from BOA closed by BOA for some reason a while ago, but she pays it off still even though they canceled it. It was just 2,000 at the time and shes now down to like 400, so even though THEY canceled it, she kept paying the debt she owes.

Can anyone explain this? From what I gather online First Party Fraud is something along the lines of opening lines of credit, paying on time for a bit to build credit then max them all out and never pay? My daughter never misses a payment on any account, even her report at all 3 bureaus say it. 

Also whats this "ID Fraud"? She applied ONLINE. No ID info she recalls.

Also she has a few cards with Commenity in perfect standing and NO BALANCE. (Ann Taylor, Express & ULTA).

Any help would be great. Nice to meet you all and thank you!

[AverageJoesCredit]

Thats a very heavy denial letter. Very interested to see what others think on this. Have you checked daughters credit reports for any misinformation?

[Blackswizz750]

Definitely check her credit from Myfico or CK for monitoring to ensure nothing is going on.

If she has the letter go ahead and call and see what can be cleared upnonce you have her credit reports. I hate this has happened to your DD.

[Anonymous]

Sounds like she just tripped a couple things together in Comenity's algorithms.

Is her current address different from the cards she's AU on and/or her student loans? That's my guess for the suspected ID fraud.

As others have said, make sure you grab all three reports (Annual credit report if they haven't been used in the last year, some states actually require a second annual free report; see https://ficoforums.myfico.com/t5/Personal-Finance/Seven-states-require-free-extra-credit-reports/m-p...).

[FinStar]

OP, how long has she had Ann Taylor, Express and Ulta? Are those in her name as a primary accountholder? Did she obtain them at the same time or within a short timeframe?

What CLs does she have on those 3 and how did she get approved...online or via the store?