LONG: Credit Card Fraud, Sears, and NJ Victims

[DigDug]

Finally, I have been hit by credit card fraud, and egregrious fraud at that.

This all started when I recieved a few calls from Sears demanding that I pay my overdue balance. I told them that I didn't even have a Sears Mastercard. They referred me to their loss prevention department, where I found out that "I" had been running up charges on "my" Sears Gold Mastercard for about 4 months - paypal payments, purchases of foreclosure listings (hmm, connect the dots), and all sorts of things. I explained to them that I never signed up for one. Now check this out....

It seems that Sears had the great idea of automatically (read: without consent) upgrading "preferred" Sears Card Holders, to their Sear Mastercard. They sent a pre-mailer, and then the credit cards. Here's the kicker - since these are "upgrades" to existing Sears customers, the cards automatically activate after a certain period of time. Literally anyone could pick it up and start a spending spree.

Apparently, a NJ fraud-ring found out about this mailing before it was to occur, and raided mailboxes. This must have been a frauder's dream - knowing that most of the recipients weren't even expecting a credit card, they'd be able to use them willy nilly for an extending time; no card would be reported stolen, because no card was even expected!

So, they closed my account and are performing an investigation. But I asked a few questions before they were done.
Q:Why was I told about this fraud-ring after having been referred by their collection agency, of all people - seeing as I am a NJ resident, and have a trillion nefarious purchases on my card, why is there a presumption that I am financially delinquent and no that this is a case of fraud?
A: Literally no answer, but a scripted apology

Q: Why in hell Sears would do such an upgrade without consent?
A: It was a "benefit" to Sears cardholders for their "outstanding" commitment to Sears (thank guys!)

Q:Why they woudl allow automatic activation?
A: As a "risk that Sears took" to offer this "gift" to us.

The last question really got me.
A risk that Sears took? I patronizingly asked him whether he thought Sears swallowed the loss, or whether he thought they would pass the loss onto us through interest rates and he sputted a nervous laugh.

Jerks.

So, any of you Sears card holders - check to make sure that you aren't the proud owner of a Sears Card held by a stranger.

 

[AzNmAnJLH]

thanx for the heads up

 

[Russ]

That's a nasty one. Is this in the news anywhere?

Russ, NCNE

 

[DigDug]

Not that I know of. It seems that Sears doesn't like to make known of the management blunders.

 

[DigDug]

Article complaining about Sears and this type of marketing strategy.

 

[Russ]

If Sears had simply sent the cards, without advance notification, I could see the beef. But, they sent you an opt-out letter ahead of time. Perhaps you should have paid more attention.

Russ, NCNE

 

[Lithium381]

<< Not that I know of. It seems that Sears doesn't like to make known of the management blunders. >>



that sucks, credit card companies are stupid most of the time, CS sucks major @$$, suprised you got a hold of someone....

EDIT - heh, well i geuss they did call you.....

 

[spanky]

so basically... u had to tell them to not send u the card, or else it would be sent to u and it would automatically be activated? that kinda reminds me of how columbia house automatically sends u cd/dvd's, which u will be billed for... unless u tell them not to. i think that sucks. anyway... i hope things get resolved and sears will try a little harder to screw their cardholders and themselves.

 

[crypticlogin]

Wow! Any credit card that's mailed to you that doesn't have you call them first to activate isn't worth its weight in bull dung, IMHO. That's some pretty shody "security."

Good luck with that.

 

[Vic]

<< If Sears had simply sent the cards, without advance notification, I could see the beef. But, they sent you an opt-out letter ahead of time. Perhaps you should have paid more attention.

Russ, NCNE >>



I disagree. The burden should not fall upon the consumer to stop a transaction that they did not want or authorize in the first place. Think of it, I work as a mortgage broker. I could sent people out letters telling them that, unless I get an "opt-out" letter back, I'm going to refinance their homes whether they like it or not. Oh well, perhaps they should pay more attention to their endless stream of junk mail...

Anyway, it looks like the effects of the "Privacy Act" are finally start to kick in. This is only the beginning, folks.

 

[DigDug]

Russ, I understand and agree that in the marketplace, customers attempt to shift the burden of responsibility far too much upon retailers. However, you are going too far in the other direction. While it is my responsibility to perform contractual obligations I have undertaken, it is not, nor should be my responsibility to be held to ones i have not bargained for.

Consequently, contract law does not hold valid offers that presume acceptance through silence (unless such offers are a customary practice between parties). If I were to have to go to court, I would surely win judgment on the matter.

 

[Bleep]

<< If Sears had simply sent the cards, without advance notification, I could see the beef. But, they sent you an opt-out letter ahead of time. Perhaps you should have paid more attention >>


Show me one bit of proof that he received this opt-out letter, you are always asking for proof how about you giving a little proof for your statement.

Bleep

 

[HappyPuppy]

I don't understand why anybody has a department store credit card. You shop at half a dozen stores, you have half a dozen different CCs. Why not just have one CC from MC, Visa, whatever that works everywhere and you only get one bill at the end of the month.

Back on topic, I think this was a sleazy thing Sears did. Sears, though, has always been sleazy.

 

[DigDug]

Happy Puppy,

Department store cards do suck. I only signed up years ago since a discount came along with it. I never used it ONCE afterwards, yet I was one of the elite 6% with "outstanding commitment" to Sears they felt was in need of the "gift" of a Mastercard.

 

[Mday]

my mailbox is locked....

and i got my mailer in the mail, and i did read it.

i expect mine to arrive...

--

as for the automatic activation, hhahahaaa sears is the one that is screwed on that one.

 

[HappyPuppy]

One time in my life I took a department store credit card from Mervyn's. I did it because they gave me 15% off my fairly large purchase for doing it. I went directly home and called them to cancel the card and they told me they couldn't cancel it until the actual "plastic" had been generated. I waited and called for weeks until the damn plastic came in the mail. I called again and they told me I had to come down in person to close the account. I went in person and they couldn't find all the info they needed to close the account.

End of story: After 3 months I was finally able to close the CC account from a store I shop at once a year. Never again.

Getting rid of a department store CC account is almost as bad as cancelling an AOL account.

 

[Static911]

Getting rid of a department store CC account is almost as bad as cancelling an AOL account.


agreed

Static911