What Do You Do If Your Credit or Debit Card is Lost or Stolen
Below is a MRR and PLR article in category Finance -> subcategory Credit.
What to Do If Your Credit or Debit Card Is Lost or Stolen
Many people rely on the convenience of credit and debit cards for everyday transactions. When these cards are lost or stolen, it's crucial to act swiftly to minimize potential damage. Thankfully, the Electronic Fund Transfer Act (EFTA) and the Fair Credit Billing Act (FCBA) provide guidelines to protect you.
Immediate Actions
Report the Loss Promptly
Contact your card issuer immediately if your credit or debit card is lost or stolen. Most companies offer 24-hour toll-free numbers for emergencies. Find these numbers on your statement or the back of your card and note them down for future reference. Follow up your call with a letter that includes your account number, the date you noticed the card was missing, and when you first reported the loss. Prompt reporting helps limit your liability.
Check Your Insurance
Review your homeowners insurance policy to see if it covers card theft. If not, consider updating your policy to include this protection.
Credit Card Loss (FCBA)
Under the FCBA, your maximum liability for unauthorized use of your credit card is $50. If you report the loss before any unauthorized use occurs, you aren't responsible for charges. If unauthorized charges do occur before you report the lost card, the most you'll owe is $50 per card. If only your credit card number is stolen, you have no liability for unauthorized use.
After reporting the loss, scrutinize your billing statements for unauthorized charges. If you find any, send a detailed letter to your card issuer with each questionable charge, the date your card was lost or stolen, or when you noticed unauthorized charges, and when you reported it. Use the billing error address provided, not the payment address.
Debit Card Loss (EFTA)
Your liability for unauthorized use of an ATM or debit card depends on how quickly you report the loss. According to the EFTA, if you report a missing card before unauthorized transactions occur, you aren’t liable for any losses.
If unauthorized use happens before you report it:
- Report within two business days: Your liability is capped at $50.
- Delay beyond two business days but within 60 days of receiving your statement: You could be responsible for up to $500.
- Fail to report within 60 days: You risk losing all funds in your account and any overdraft protection.
For unauthorized transfers involving only your debit card number, you are liable only for transactions between the 60th day after your statement was mailed and when you report the issue.
If you notice unauthorized transfers on your statement, alert your card issuer immediately. Once reported, you cannot be held liable for subsequent unauthorized transactions.
By taking these steps promptly, you can protect yourself from financial loss and ensure a smoother resolution process.
You can find the original non-AI version of this article here: What Do You Do If Your Credit or Debit Card is Lost or Stolen .
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