Credit, ATM and Debit Cards:
What to do if They're Lost or Stolen
Many people find it easy and convenient
to use credit cards and ATM or debit cards. The Fair
Credit Billing Act (FCBA) and the Electronic Fund Transfer
Act (EFTA) offer procedures for you to use if your cards
are lost or stolen.
Limiting Your Financial Loss
Report the loss or theft of your credit
cards and your ATM or debit 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 or Fraudulent Charges
(FCBA). Your maximum liability under federal law for
unauthorized use of your credit card is $50. If you
report the loss before your credit 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. Also, if the
loss involves your credit card number, but not the card
itself, you have no liability for unauthorized use.
After the loss, review your billing
statements carefully. If they show any unauthorized
charges, it's best to send a letter to the card issuer
describing each questionable charge. Again, tell the
card issuer the date your card was lost or stolen, or
when you first noticed unauthorized charges, and when
you first reported the problem 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 or Debit Card Loss or Fraudulent
Transfers (EFTA). Your liability under federal law for
unauthorized use of your ATM or debit card depends on
how quickly you report the loss. If you report an ATM
or debit card missing before it's used without your
permission, the EFTA says the card issuer cannot hold
you responsible for any unauthorized transfers. If unauthorized
use occurs before you report it, your liability under
federal law depends on 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
transfer. You also risk unlimited loss if you fail to
report an unauthorized transfer within 60 days after
your bank statement containing unauthorized use 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. However, for unauthorized
transfers involving only your debit card number (not
the loss of the card), you are liable only for transfers
that occur after 60 days following the mailing of your
bank statement containing the unauthorized use and before
you report the loss.
If unauthorized transfers 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 or debit card, you cannot be held liable
for additional unauthorized transfers that occur after
that time.
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 protection of ATM and debit
cards that involve a Personal Identification Number
(PIN), keep your PIN a secret. Don't use your address,
birthdate, phone or Social Security number as the PIN
and do memorize the number.
The following suggestions may help
you protect your credit card and your ATM or debit card
accounts.
For Credit and ATM or Debit Cards:
- Be cautious about disclosing your account number
over the phone unless you know you're 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 or debit
slips above the total so the amount cannot be changed.
- Don't sign a blank charge or debit slip.
- Tear up carbons and save your receipts to check
against your monthly statements.
- Cut up old cards - cutting through the account number
- before disposing of them.
- Open monthly 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 inquiries. Under the FCBA (credit
cards) and the EFTA (ATM or debit cards), the card
issuer must investigate 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 or debit cards:
- Don't carry your PIN in your wallet or purse or
write it on your ATM or debit card.
- Never write your PIN on the outside of a deposit
slip, an envelope, or other papers that could be easily
lost or seen.
- Carefully check ATM or debit card transactions before
you enter the PIN or before you sign the receipt;
the funds for this item will be fairly quickly transferred
out of your checking or other deposit account.
- Periodically check your account activity. This is
particularly important if you bank online. Compare
the current balance and recent withdrawals or transfers
to those you've recorded, including your current ATM
and debit card withdrawals and purchases and your
recent checks. If you notice transactions you didn't
make, or if your balance has dropped suddenly without
activity by you, immediately report the problem to
your card issuer. Someone may have co-opted your account
information to commit fraud.
Buying a Registration Service
For an annual fee, companies will
notify the issuers of your credit card and your ATM
or debit card 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 or transfers.
For More Information
The following federal agencies are
responsible for enforcing federal laws that govern credit
card and ATM or debit card transactions. Questions concerning
a particular card issuer should be directed to the enforcement
agency responsible for that issuer.
Board of
Governors of the Federal Reserve System
Regulates state-chartered banks that are members of
the Federal Reserve System, bank holding companies,
and branches of foreign banks:
Division of Consumer and Community Affairs, Stop 801
20th and C Streets, NW
Washington, DC 20551
202-452-3693
www.federalreserve.gov
Federal
Deposit Insurance Corporation
Regulates state-chartered banks that are not members
of the Federal Reserve System:
Division of Compliance and Consumer Affairs
550 17th Street, NW
Washington, DC 20429
877-ASK-FDIC (275-3342) toll-free
www.fdic.gov
National
Credit Union Administration
Regulates federally chartered credit unions:
Office of Public and Congressional Affairs
1775 Duke Street
Alexandria, VA 22314-3428
703-518-6330
www.ncua.gov
Office of
the Comptroller of the Currency
Regulates banks with "national" in the name
or "N.A." after the name:
Office of the Ombudsman
Customer Assistance Group
1301 McKinney Street, Suite 3710
Houston, TX 77010
800-613-6743 toll-free
www.occ.treas.gov
Office of
Thrift Supervision
Regulates federal savings and loan associations and
federal savings banks:
Consumer Programs
1700 G Street, NW
Washington, DC 20552
800-842-6929 toll-free
www.ots.treas.gov
Federal
Trade Commission
Regulates other credit card and debit card issuers:
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
877-FTC-HELP (382-4357) toll-free
www.ftc.gov
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