Getting a credit card you never asked for (2024)

Under thelaw in BC, a credit card issuer can’t send a credit card to someone who didn’t apply for it.

A credit card issuercansend out a card to replace an existing card. Or, if there was a merger between credit card companies, the new company can send replacement cards to current customers.

But those are the only times it’s permitted.

If you received a new credit card thatisn’tan upgrade or replacement for an old card, that’s illegal. There are steps you can take. See “Work out the problem,” below.

UnderCanadian law, a credit card issuer can’t be sneaky about signing up new customers. The customer must be fully aware of what the deal is. Once a customer agrees to apply for a card, the issuer must disclose important details about the card. (Including interest rate and any other charges or fees that come with it.) See our guidance ongetting a credit card.

A common marketing scheme works like this: A shopper in a grocery store or department store is approached by an employee who asks if they’d like to sign up to receive “free points.” The shopper may not realize the personal information they provide will be be used on a credit card application.

TheFinancial Consumer Agency of Canadainvestigates complaints against companies that solicit credit card applications. See the “Who can help” section below.

There’s another reason you might receive a credit card you didn’t apply for: you may be a victim ofidentity theft. In other words, a criminal has gotten hold of your personal information and has applied for a card, pretending to be you.

How did they get the information?

There are many ways. They might have:

• found an old credit card bill in the garbage or recycling

• found a lost wallet or phone

• tricked you into giving them your personal information through an onlinescam

How to protect yourself

If you think someone has applied for a credit card under your name without your permission, call the credit card issuer immediately. Ask for details about when and how the account was opened. If it’s a fraudulent account, ask the issuer to freeze and cancel it. If you suspect you may be a victim of identity theft, you may also wish to file a report with your local police department for further investigation.

You should alsoorder a copy of yourcredit report. Check the report for any other accounts or transactions you don’t recognize. Call the companies involved and tell them what happened. Ask the credit reporting agency to put a fraud alert on your credit report. Consider adding a note to your credit report explaining the situation (see our guidance onfixing a mistake on yourcredit report).

For more steps to take, see our guidance on what to doif you’re the victim of a scam.

Most credit card issuers do a credit search on each new customer they’re thinking of signing up. (That way they can review the potential customer’s credit history to determine if they’re likely to pay their bills on time.)

If you’re unknowingly signed up for a credit card, it’s likely the issuer did a credit check on you. This shows up as a “hard inquiry” on your credit report, and will lower your credit score. See our guidance onimproving your credit score.

If you get a credit card in the mail that you didn’t apply for, call the company right away. Tell them you don’t want the card, and to cancel the account.

Ask them not to report the account to the credit reporting agencies. If they’ve already done so, ask them to correct the error with the agencies. Ask for written confirmation that they have.

Once you’ve called the company, follow up by sending a letter. In the letter, say that:

• you’ve received a credit card you didn’t apply for

• you want the account to be closed

• you don’t want the credit card account to be recorded in your credit report

You should also include a photocopy of the card, with the account number clearly visible. Make a copy of the letter, and keep it in your files. Consider sending the letter by registered mail so you get confirmation of delivery.

Contact theFinancial Consumer Agency of Canada. Let them know you’ve received a card you didn’t apply for, or have been misled into applying for a credit card. You can phone them directly, orsubmit your complaint online.

A number of stores hire sales agents to sign up customers for the stores’ credit cards. Often, these sales agents use misleading tactics to get customers to sign up.

For example, they may say you’ve won “free points” that you can redeem at the store. They ask for a copy of your ID to confirm that you’re actually the winner. In reality, they use your personal information to sign you up for the store’s credit card.

In Canada, this behaviour is illegal. See above, under “What you should know.”

Some cards may require that you call the issuer to activate the card. Others may give you the option of going online to activate the card.

Under the law, using a credit card for the first time may be enough to activate the account — even if you haven’t signed an application form. And once the card has been activated, you are locked in to the cardholder agreement with the issuer.

The moral: Don’t activate or use a credit card that you didn’t apply for!