Cell phone company unauthorized credit card inquiry

[TStith]

I have been trying to find someone to ask this question to for a while now. Almost two months ago my cellular phone company suspended service on my cell phone for reasons unknown to me at the time. All they would tell me at first was that their was fraudulent activity on my account. I was told to come to one of their stores with my identification and the phone (once I got to the store they tried not to restore service saying that my driver's liscence was not enough I would need my social security card or something with my social security number; fortunately I happened to have my student loan papers in my purse). . This would have been fine if I had a car and a house phone, and I was not home alone with my infant son. Long story short, after cancelling my account with them, I later found out that they claimed the fraudulent activity on my account was identity theft. They said the card I used to open my account had been stolen. In actuality, I lost that credit card since opening my account and I am the one who had it canceled. Being that I never authorized them to perform any actions from that credit card (it was just used to verify credit to see if I could get a cell phone) i would like to know can they do things like that without my permission. I had to take my 9 month old son out in the pouring rain to our neighbors house just to use her phone to get a ride to the store so they could turn my phone back on because I had recently moved and did not have a house phone yet. Without notice they suspended the service on my phone without asking me anything about the card, and if they had common sense they would see that it could not have been identity theft because no transactions were performed with the company on that account and the names match. So, was it legal for them to suspend service on my phone based off that when they were never authorized to do anything with my credit card?