Credit card fraud or theft
My husband has a credit card with Shell citicards. He hasn't used that shell card for almost 2 years coz he used it only for gas rebate. When we moved to WI, the Shell gas stations are just too far out. We cut up all our credit cards, except for 2 visas for emergency.
Fast forward April 2006, we were planning to buy a house when we move back to CA (we moved in June), so we applied for a loan pre-approval. Our credit scores were in 760-799. We have not bought a house yet, but we did another credit check in August, Shell citicard put my husband's account in the collection for non-payment over 3 months. We never got the statements (haven't for the past 2 years since it has zero balance). Hubby said he never used it, remember we cut them all up? He called Citibank, they said they sent the statement in April to our old apartment in WI, which Post Office didn't forward to our current address then because they only forward letters for a year.
My husband asked for a copy of the bill and what were the charges, they said they'll send it and takes 5 business days. We waited but didn't get anything. Husband call them again, they misspelled our address, so it didn't get to us. But they sent us a bill with correct address back in Aug., but no explanation of chages. Meanwhile, collection agency sent us a bill.
We want to dispute the charges, but should we pay the collection agency now and wait for Citibank's explanation of charges? If we do, do we get a refund of the amount since we are disputing it? Oh, and my husband's credit score is now 680-720 because of that.