What to do if Your Credit Card is Stolen?
Despite our best precautions sometimes credit cards do get stolen. It could be the credit card number being pilfered through dumpster diving, a pickpocket stealing a wallet or a receipt being stolen from a restaurant.
The good news is credit companies have put in a system that works to protect them as well as the consumer.
Report it
As soon as you notice the card is missing, report it to the credit card company. It’s a good idea to maintain a separate list phone numbers of your credit card company’s customer service area. After all, if your card is missing, you will not be able to call the number that’s imprinted on the back of the card!
It is important that you report the theft as soon as possible. Make sure you remember the last time you used the card, for what amount and for what purchase. Give that information to the customer service representative. This could prevent you from being financially responsible for some or all of the charges placed on the card. Even, those you did not make.
In most cases, your liability depends on when you report the theft. The sooner you report it, the lower your liability.
Know Your Liability
The laws surrounding financial liability for fraudulent charges can be different for ATM cards and credit cards.
For example, if you report a stolen credit card and no suspect charges have been incurred, you will not be responsible for any charges. That’s because the card is cancelled as soon as it’s reported stolen.
If, however, some fraudulent charges have already gone through, you might be responsible for paying up to $50.
Stolen ATM cards could mean more liability. If you report the theft within two business days, you might only be liable for $50. After that, your liability could increase to $500. In fact, if you report it 60 days after the theft, you could be found liable for all of the charges including overdraft fees.
By law, though, you cannot be held liable for unauthorized transactions incurred after you’ve reported the theft of an ATM card.
It’s best to prevent any credit card from being stolen. You can do this by taking a few basic precautions:
- Always keep your cards in a secure place
- Select a hard to figure out PIN number and don’t tell anyone what it is
- Avoid allowing people to borrow your credit cards
- Tear up your cards prior to throwing them out
