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What To Do When Your Credit Card Is Lost Or Stolen
Though losing your credit card can be frightening and potentially devastating, there are a few things you can do for damage control. To reduce the amount of unauthorized activity, and thus costs to you and your credit card company, follow these steps:
1. Report the loss or theft immediately
Federal law states that you are liable for a maximum of $50 per card if you report the loss before your credit cards are used. The longer you wait, the more you may end up paying, so act fast as soon as you discover your card has been lost or stolen.
For example, if you discover your credit card is stolen and you notify your credit card issuer right away, they are required by law to only hold you liable for up to $50 dollars of unauthorized transactions. But if you wait and several unauthorized transactions are made before you report the theft, you can be held liable for $500 or more, depending on how long you wait. In fact, if you wait more than 60 days, or until the thief has completely emptied out your bank account and you get the statement showing overdrafts, you might be liable for the entire amount plus fees and penalties.
Look on your credit card right now (if you haven’t already lost it!) and write down the toll free number that is probably on the back. Also look for a 24-hour support line that you can call. Keep this number handy so you can report when your card is stolen immediately, regardless of the time of day.
After you call, make sure to follow up your call with a letter. Write out a formal report that your credit card has been stolen and date it. Address it to the proper department at your credit card company (don’t just send it where you send in your payments) and keep a copy for yourself. Refer to this letter as well as your phone call for all your future claims.
2. Check your insurance policy
Depending on where your card was stolen, the unauthorized transactions may be covered by your homeowners or home renter’s insurance. Read over your policy to find out if stolen credit cards are covered and file a claim immediately. Do this in addition to contacting your credit card company, because your insurance company would be able to do anything to stop further transactions from happening.
3. Monitor your account activity
After you have reported that your card has been lost or stolen, keep a close watch over your statements. If you can access your statements online, do so immediately and print off a hard copy. If you have been keeping your receipts for all your purchase (which you should have been doing) go through each item in your statement and make sure you recall purchasing it. If you come across anything that you can’t remember buying, contact your credit card company. Remind them of your previous reports when you call to make a claim about an unauthorized transaction. Ask them to either cancel or put a hold on your account and call each time another transaction shows up.
4. Address your letters appropriately
Look up your credit card companies directory and address all mail to the appropriate department. There are many different departments in most credit card companies and they don’t always communicate well with each other. If you are reporting a lost or stolen card, try to find the support line for that department. If you are disputing an unauthorized transaction, address your problems to the billing errors department.
5. Protect yourself against future incidents
Protecting yourself from future theft is doubly rewarding. On the one hand, keeping your identity and your money safe and secure is always a plus. On the other, if you do not take the proper steps in safeguarding your credit card, you might be held negligent when your card is stolen, thus making your completely liable for all unauthorized transactions.
Whenever you leave the house, make sure you only bring the cards that you plan on using that day. This reduces the confusion when digging through your purse or wallet and lessens the probability that you’ll drop or leave a card behind on accident. Also, make sure you carry your cards discretely and securely. Keep wallets in your front pockets in highly public areas and keep a hand on your purse at all times in public.
Also, beware of unscrupulous companies or hackers when disclosing your account number over the phone or the Internet. Look for logos that indicate that the web site that you are submitting to is both reputable and secure before entering any information. Also, remember to regularly clear out cookies and saved form data on your browser.
Keep your PIN a secret. Don’t tell anyone your PIN number and don’t write it down. Also, change your pin number from time to time and avoid using easily guessable numbers, such as your birthday or phone number.
Cut up old cards, shred statements and delete cached information on your browser. Don’t keep records of your account number laying around, even if it is partially blocked out.
Save receipts and review your monthly statements regularly. Pay attention to how much you are being charged at the register and in your statements.
About the Author:
Paul Basco Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card - Compare Credit Card Offers with GettingaCreditCard.com - Unraveling the best in Personal and Business Credit Cards.
This article may be reprinted in accordance with the GettingaCreditCard.com Reprint Requirements
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