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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.
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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.
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.
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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. |
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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 ATM and credit card
accounts.
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.
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