Credit cards have become very popular and are the most used type of credit by citizens. Regular credit cards and store cards are very popular and can help a great deal with money problems as well as safety. Identify theft risk is high when consumers loose or have their credit cards stolen.
The Fair Credit Consumer Act regulates fraudulent charges using credit and store cards. This does not mean that if your credit card is stolen or lost that someone will not try to use it however it does reduce your risk if someone does. Here are some ways to protect yourself should your credit card get lost or stolen.
Notify the credit card company of the loss!
As soon as you notice you do not have your credit card, you need to contact the credit card company. Calling the credit card company is the best way to go about it as it will be faster. The information on what to do and who to call when this happens is on your credit card agreement that you received when first getting the card. However, in the case that you have misplaced or can’t find the information, you are still not liable for any charges not made by you as soon as you report the card as lost or stolen.
There are some credit card companies that require you to call as well as write to them. If this is the case, it will be in the credit agreement, so be sure to check this carefully when getting a credit card and when reporting a credit card as lost or stolen. Most credit card companies require written notification within seven business days following the verbal contact of loosing or having your credit card stolen. This means that your liability is activated upon verbal contact and released upon written contact.
Extent of liability
Depending on who is using your credit card when it is reported as lost or stolen determines your liability. For example, you immediately loose liability if your card is stolen or lost in public. You are liable if the misuse is by someone you have given permission to use your card or by a joint account, such as a child or souse. However, you are not liable for phone and internet use but you are liable for a portion of the use of credit for food purchases. Consider some of the following tips to help you when a situation like this arises:
• Put your credit card agreement somewhere safe and accessible.
• Notify your credit card company immediately upon the loss or stealing of your credit card.
• Check whether you will need to write the credit card company as well as notify them by phone.
