Credit and ATM Cards
What To Do If They're Lost or Stolen
Many people find it easy and convenient to use credit and ATM cards.
The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer
Act (EFTA) offer procedures for you and businesses to use if your cards
are lost or stolen.
Limiting Your Financial Loss
Report the loss or theft of your credit and ATM cards to the card issuers
as quickly as possible. Many companies have toll-free numbers and 24-hour
service to deal with such emergencies. It's a good idea to follow up
your phone calls with a letter. Include your account number, when you
noticed your card was missing, and the date you first reported the loss.
You also may want to check your homeowner's insurance policy to see
if it covers your liability for card thefts. If not, some insurance
companies will allow you to change your policy to include this protection.
Credit Card Loss: If you report the loss before the cards are
used, the FCBA says the card issuer cannot hold you responsible for
any unauthorized charges. If a thief uses your cards before you report
them missing, the most you will owe for unauthorized charges is $50
per card. This is true even if a thief uses your credit card at an ATM
machine to access your credit card account.
However, it's not enough simply to report your credit card loss. After
the loss, review your billing statements carefully. If they show any
unauthorized charges, send a letter to the card issuer describing each
questionable charge. Again, tell the card issuer the date your card
was lost or stolen and when you first reported it to them. Be sure to
send the letter to the address provided for billing errors. Do not send
it with a payment or to the address where you send your payments unless
you are directed to do so.
ATM Card Loss: If you report an ATM card missing before it's
used without your permission, the EFTA says the card issuer cannot hold
you responsible for any unauthorized withdrawals. If unauthorized use
occurs before you report it, the amount you can be held liable for depends
upon how quickly you report the loss. For example, if you report the
loss within two business days after you realize your card is missing,
you will not be responsible for more than $50 for unauthorized use.
However, if you don't report the loss within two business days after
you discover the loss, you could lose up to $500 because of an unauthorized
withdrawal. You risk unlimited loss if you fail to report an unauthorized
transfer or withdrawal within 60 days after your bank statement is mailed
to you. That means you could lose all the money in your bank account
and the unused portion of your line of credit established for overdrafts.
If unauthorized transactions show up on your bank statement, report
them to the card issuer as quickly as possible. Once you've reported
the loss of your ATM card, you cannot be held liable for additional
amounts, even if more unauthorized transactions are made.
Protecting Your Cards
The best protections against card fraud are to know where your cards
are at all times and to keep them secure. For ATM card protection, it's
important to keep your Personal Identification Number (PIN) a secret.
Don't use your address, birth date, phone or social security number.
Memorize the number. Statistics show that in one-third of ATM card frauds,
cardholders wrote their PINS on their ATM cards or on slips of paper
kept with their cards.
The following suggestions may help you protect your credit and ATM
card accounts.
For Credit Cards:
Be
cautious about disclosing your account number over the phone unless
you know you
are dealing with a reputable company.
Never
put your account number on the outside of an envelope or on a postcard.
Draw
a line through blank spaces on charge slips above the total so the amount
cannot be changed.
Don't
sign a blank charge slip.
Tear
up carbons and save your receipts to check against your monthly billing
statements.
Open
billing statements promptly and compare them with your receipts. Report
mistakes or discrepancies as soon as possible to the special address
listed on your statement for "billing inquiries." Under the
FCBA, the card issuer must investigate billing errors reported to them
within 60 days of the date your statement was mailed to you.
Keep
a record - in a safe place separate from your cards - of your account
numbers, expiration dates, and the telephone numbers of each card issuer
so you can report a loss quickly.
Carry
only those cards that you anticipate you'll need.
For ATM cards:
Don't
carry your PIN in your wallet or purse or write it on your ATM card.
Never
write your PIN on the outside of a deposit slip, an envelope, or on
a postcard.
Take
your ATM receipt after completing a transaction.
Reconcile
all ATM receipts with bank statements as soon as possible.
Buying a Registration Service
For an annual fee of $10 to $35, companies will notify the issuers of
your credit and ATM accounts if your card is lost or stolen. This service
allows you to make only one phone call to report all card losses rather
than calling individual issuers. Most services also will request replacement
cards on your behalf.
Purchasing a card registration service may be convenient, but it's
not required. The FCBA and the EFTA give you the right to contact your
card issuers directly in the event of a loss or suspected unauthorized
use.
If you decide to buy a registration service, compare offers. Carefully
read the contract to determine the company's obligations and your liability.
For example, will the company reimburse you if it fails to notify card
issuers promptly once you've called in the loss to the service? If not,
you could be liable for unauthorized charges.
For More Information
The following federal agencies are responsible for enforcing federal
laws that govern credit and ATM card transactions. Questions concerning
a particular card issuer should be directed to the enforcement agency
responsible for that issuer.
State Member Banks of the Federal Reserve System
Consumer and Community Affairs
Board of Governors of the Federal Reserve System
20th & C Sts., N.W.
Washington, D.C. 20551
National Banks
Comptroller of the Currency
Compliance Management
Mail Stop 7-5
Washington, D.C. 20219
Federal Credit Unions
National Credit Union Administration
1776 G St., N.W.
Washington, D.C. 20456
Non-Member Federally Insured Banks
Office of Consumer Programs
Federal Deposit Insurance Corporation
550 Seventeenth St., N.W.
Washington, D.C. 20429
Federally Insured Savings and Loans, and Federally Chartered State
Banks
Consumer Affairs Program
Office of Thrift Supervision
1700 G St., N.W.
Washington, D.C. 20552
Other Credit Card Issuers
(includes retail/gasoline companies)
Consumer Response Center
Federal Trade Commission
Washington, D.C. 20580
For More Information
The FTC works for the consumer to prevent fraudulent, deceptive and
unfair business practices in the marketplace and to provide information
to help consumers spot, stop and avoid them. To file a complaint, call
toll-free, 1-877-FTC-HELP (1-877-382-4357.
4470 W. Sunset Blvd., Suite 216, Los Angeles, CA 90027
