What can be done to stop this from happening?”

I would start by sending a letter in writing how r grandmother doesn't intend to pay and let them know that those charges are not hers.  I would also explain how she is 92 years and to stop the harassing phone calls (i.e. correspond via mail).  The ball is then back in their court to prove it is yours.

HS in California said: “My 92 yr. old mother is being harrassed by HSBC/RS to pay for some articles of clothing that Gottschalks says she purchased in Mar. 08. She didn’t buy what they say she did so she has refused to pay. There are 5 other people in her area with the same name, but they are insisting that it was her and she is getting so angry and frustrated that she may have a heart attack and die. What can be done to stop this from happening?”

We were impressed with a quick response from the company. Gottschalks immediately replied:

It’s definitely upsetting to see a headline like this (especially with no option for reply or resolution). As a company we are dedicated to providing great service, and while our credit cards are handled by HSBC Retail Service, we do understand that the customer’s relationship is with us. We are constantly working with HSBC to make sure that our customers are treated well, and we feel that we have been very successful in that.

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i've been seeing ads for employment for them. i hadn't heard anything about that tho....  but then again mervyns was still tryin to hire people even though they were going out of business. so who knows.