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Protect Credit
What to Do If Your Card is Stolen
or Lost |
Notify your creditors
As soon as you learn your card has been lost or stolen, you should report it to your
creditor immediately. Fraudulent use of cards often occurs within the first few days of
their being lost or stolen. The sooner you report you loss, the more you will limit your
legal liability if someone uses your card without your permission. You should also
follow-up with a letter to your creditor outlining the card number, the specific date and
time it was lost or stolen, and the date you called in the loss.
You should have a credit card info sheet
that lists account numbers and telephone numbers of creditors in case your cards are lost
or stolen. It's very important to keep the list in a safe place, such as a safety deposit
box or home lock box. For safety reasons, the list shouldn't include Personal
Identification Numbers (PINs) or other revealing information.
The other option is to sign up for a card registration and protection service that many
companies offer. If your card is lost or stolen, you only need to make one call to report
all the cards you've lost instead of calling each creditor individually. This type of
service usually costs around $10 to $30 a year but may be well worth the convenience.
If your purse or wallet is stolen, keep in mind that a credit card and driver's license
are the only items a thief needs to open a charge account in your name. You should contact
the credit bureaus and place a "fraud alert" on your
file. Any further credit applications will have to be confirmed by you over the phone
before proceeding.
Legal Liability
1) Credit Cards
The Fair Credit Billing Act (FCBA) limits your legal liability should your card become
lost or stolen. If you report your loss immediately to creditors, and before they are
used, the FCBA says your creditor cannot legally hold you responsible for unauthorized
charges. If your cards are used before you have a chance to call creditors, you will owe a
maximum of $50 for unauthorized charges.
You should also review your credit billing statement when it arrives. Look for any charges
not made by you. Note any unauthorized charges and send a letter to you creditor
disputing the charge. Again, be specific as to when the card was lost and the date of
notification to the issuer.
2) ATM or Debit Cards
Because your charge is automatically deducted from your bank account, you may be liable
for all unauthorized charges if you don't report a lost or stolen ATM or debit card
promptly.
With ATM or debit card transactions, the Federal Electronic Transfer Act (FETC) limits
your liability to the following:
- $0 - If you report the card missing or stolen immediately.
- $50 max - If you report the card missing or stolen within two business
days of discovery.
- $500 max - If you fail to report the card missing or stolen within two
business days of discovery, but do report unauthorized charges within 60 days of receiving
your bank statement.
- Unlimited - If you fail to report unauthorized charges within 60 days
of receiving your bank statement.
Credit and Debt Calculators:
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• Should I pay off debt or
invest in savings?
• What will it take to pay off my balance?
• Should I consolidate my
debts?
• How Much Am I Spending?
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