Hi her what happen, I had this mastercard for over since 209 with cl of 1500. I got this card when I agree to settle a collections. I only use this card once a year for about 10 dollars year to keep the account a live. Last week I made a charge at Key food for 8.52, I check ther telephone system to see how much came through and to pay it off befor account cuts. To my surprise voice system told that my balance was 8.52 and the available credit was 1365. At that point I new that some thing was not right with the account. Spoke to customer service then to the fraud department. Some one had a bumch of on line charges and tried to get cash advances on card. Thay paid parking ticket. The account was closed and new card will be sent to me. thay started fraud investgation. How will this effect my credit report I have great cr my fico scores are around 800, no late payments or collections. Should I just pay fraud charges and call it day.
No you dont pay fraudulent charges, you will need to sign the affadavit that you did not authorize nor make the charges and at the end of the investigation the temporary credit for the fraud charges will become permanent. As far as your CR the old account will most likely be removed and the newly issue account reposted with the same opening date and other relevant payment information there should not be any effect on Fico at all.
By law and network policy you are only responsible for your transactions. All the other charges except the Key Food are unauthorized and all you need to do is contact the issuer and they will work on it. They will usually issue a temporary credit that becomes permanent once everything is figured out. Cards today can be duplicated or even have their info stolen without removing the card. I have had cases on my cards that someone sent a charge through and clearly was not mine. Between me and the issuer everything was sorted out because everyone knew what went wrong. I still had the card on me and had not used it recently. It is not a new thing for issuers, they know how to handle it as soon as you notify them of the issue. In the case of reports it changes nothing so you will have everything stay the same and they will just issue you a new card and number.
If i had 800 scores and better cards, i would just close this card and move on. It will stay on your reports up to 10 years or more. Just mho
Agreed. If the OP's scores are "around 800" there's no need to have a credit card issued by a collection agency (Jefferson Capital).
The card does not cost me anything to keep, just make a charge once year. I don't close down cards. I want show longevity. Never had problem with card.
You probably never went into collections anyway AJC. The new collection companies are getting more and more creative on making money. The smaller ones are also more nimble at dealing with this. The idea is that if they can send the client into debt again they can do 1st party collections which reduces costs. Otherwise the person gets their credit rebuilt realisticly fast while the collections agency gets merchants fees for the risk. Either way they win.