Legal Question in Credit and Debt Law in California
credit card security questions
A credit card company for which I recently opened a card, $300 credit limit, called/wrote requesting activation by calling their Fraud/Security dept. I was asked routine questions as they wanted to determine if I was really the person they sent the card to. I verified my name, address, last 4 digits of my ss#. Then they asked if I knew a Richard L_ _ _ _. (I was divorced from this person 20 yrs ago, my last name is not the same as his.)
They asked me his approximate age. I said the questions were of someone I have had no contact with for 20 yrs and were irrelevant to this credit card! They persisted. I cancelled the card. The card was opened and closed within 30 days (never used). Now I am being assessed a $59 annual fee and the credit card company will not waive it until I finish answering their questions. I do not see the relevance, and I find it violates another individual's privacy, for me to answer these questions. They will not remove the $59 annual fee. Can they do this? (I am single, live alone
and there is no record of this person I was married to 20 yrs ago on my credit reports, no former addresses. I cannot imagine where they dug up this information from so long ago.
1 Answer from Attorneys
Re: credit card security questions
The determinative issue is when the contract came into existence ,if at all. If one assumes a valid contract arose between the credit card company and you prior to activation, you would be entiled to a cancellation of the $59 if you can show the credit card company simply frustrated your ability to activate the card due to their unreasonable security questions. If one assumes a valid contract arose between the credit card company and you subsequent to activation, you would be entitled to a cancellation of the $59 based on the fact you did not activate the card. Another issue your question raises is whether or not the credit card company's practice constitutes an unfair or deceptive practice in violation of Massachusetts General Laws, Chapter 93a. Assuming there was such a violation, this would entitle you to bring an action for up to treble damages plus attorney fees. It's all very fact specific, and, not knowing the specific facts, I couldn't advise you on specifics.
As a practical matter, if you decide to simply not pay the charge, the company can sue you and/or report you to the credit bureau. If they sue, you would need to defend and possibly countersue. If they report to one of the credit bureaus, you are entitled to dispute the negative report in accordance with the procedures set forth in the Fair Credit Reporting Act (15 U.S.C Sec. 1681 et seq.). I would consult with a licensed attorney in your area regarding the specific facts of your situation in light of the language and terms of the alleged agreement.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
