What is Identity Theft?Written by John Mussi
How can someone steal your identity? Identity theft occurs when someone uses your personal information such as your name, credit card number or other identifying information, without your permission to commit fraud or other crimes. Identity theft is a serious crime. People whose identities have been stolen can spend months or years - and their hard-earned money - cleaning up mess thieves have made of their good name and credit record. In meantime, victims may lose job opportunities, be refused loans, housing or cars, or even get arrested for crimes they didn't commit.How it works: In recent years identity theft has been on increase. By trickery, by stealing information from rubbish bins or office bins, or by using publicly available information, a crook obtains personal information about you—for example, date of birth and mother's maiden name. The result could be that thief is able to obtain credit cards, take out loans, issue counterfeit cheques or credit cards and go on a spending spree in your name. In effect, they become you for sole purpose of committing fraud or theft. This type of crime also can go undetected for many months, if not years, because bills and other documents often are sent to fake addresses, not to your house. You may only become aware of situation after unpaid and overdue bills begin to accumulate and your credit record has been downgraded. You may even be denied a loan or credit card, an apartment, a job or other opportunities because an identity thief ruined your credit rating.
| | What is Credit Card and Debit Card Blocking? Written by John Mussi
Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, problem could have been card "blocking."What is Blocking? When you use a credit or debit card to check into a hotel or rent a car, clerk usually contacts company that issued your card to give an estimated total. If transaction is approved, your available credit (credit card) or balance in your bank account (debit card) is reduced by this amount. That's a "block." Some companies also call this placing a "hold" on those amounts. Here's how it works: Suppose you use a credit or debit card when you check into a £100-a-night hotel for five nights. At least £500 would likely be blocked. In addition, hotels and rental car companies often add anticipated charges for "incidentals" like food, beverages, or gasoline to blocked amount. These incidental amounts can vary widely among merchants. If you pay your bill with same card you used when you checked in, final charge on your credit card, or final amount on your debit card, probably will replace block in a day or two. However, if you pay your bill with a different card, or with cash or a cheque, company that issued card you used at check-in might hold block for up to 15 days after you've checked out. That's because they weren't notified of final payment and didn't know you paid another way. Why Blocking Can Be a Problem Blocking is used to make sure you don't exceed your credit line (credit card) or overdraw your bank account (debit card) before checking out of a hotel or returning a rental car, leaving merchant unpaid. Blocking is sometimes also used by restaurants for anticipated sizeable bills (like large groups at dinner or a party), by companies cleaning your home, and other businesses to ensure credit or account money will be available to complete payment. If you're nowhere near your credit limit or don't have a low balance in your bank account, blocking probably won't be a problem. But if you're reaching that point, be careful. Not only can it be embarrassing to have your card declined, it also can be inconvenient, especially if you have an emergency purchase and insufficient credit or money in your bank account. On debit cards, depending on balance in your bank account, blocking could lead to charges for insufficient funds while block remains in place.
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