Are You Stuck With Unwanted Credit?

According to the Federal Trade Commission, you would not be liable in any way for the unauthorized use of any kind of credit card sent to you without you first having applied for the credit. In fact, under the federal Truth in Lending Act, it's illegal for a creditor of any kind, including banks, department stores and oil companies, to extend credit without either an oral or written application. This includes MasterCard, Visa, and travel and entertainment cards, like American Express and Diners Club.

It is, however, perfectly legal for a creditor to issue renewal or replacement credit cards, since your earlier application is on file. A department store or oil company may replace its own card with a full-service Visa or MasterCard. If you activate one of these cards, mistaking it for a replacement card, you could open a credit line you don't want. In such cases, the prior acount is closed when the new one is activated. To terminate a credit agreement, you must inform the creditor in writing.

Under ordinary cir****tances you can be liable for up to $50 per card for the unauthorized use of your legitimate credit cards, but there is no liability at all for the misuse of credit for which you never applied.

If you receive an unsolicited credit card, the Better Business Bureau suggests the following:

• Make a photocopy of the card, then cut it up. Write to the issuer, stating that you decline the offer and are requesting that any information added to your credit record be removed immediately.
• Keep a record of the card offer and your letter. Never give out personal or confidential information over the telephone.
• If you are interested in keeping the card, don't use it until you have verified all of the terms of the agreement, including credit limit, annual fee, interest rate and length of time for which the rate is guaranteed.

For additional information, contact your local Better Business Bureau or the Federal Trade Commision.