How to Handle Credit Card Losses or Theft
Written by James Chan   


As your credit card is a major source of debt, losing it or getting it stolen can damage your finances immensely, saddling you with huge debts if not taken care of properly. Therefore, if you discover that your credit card is stolen or lost, you should:


Contact Your Card Issuer Immediately

Your card issuer is the bank under which you applied for the credit card. Most banks have a 24-hour, toll-free hotline that you can call to report a lost or stolen credit card. You can find the number either on your billing statement or on the “contact us” section of the bank’s website. When you call them, be ready to provide:
  • Your account number,
     
  • The date you noticed the loss or theft of your card, and
     
  • The date of your last purchase.
Just to be on the safe side, you should also write a letter to your card issuer informing them about the card theft or loss so you have proof in writing.

Again, contact your card issuer immediately to deactivate your card, so whoever found or stole your card cannot use it.


Know Your Loss Protection Rights

Under the Fair Credit and Billing Act, you are liable for any unauthorized purchase made on your credit card before you report the theft or loss for up to $50- although credit card companies rarely assert this charge. On the other hand, you are not liable for any unauthorized purchase made after you report the loss or theft of your card. That’s another reason why you should call as soon as possible once you detect a credit card loss or theft.

However, if the loss only involves your credit card number (and not the actual card itself), you are not liable for any unauthorized purchases, before or after you report them.

While you are disputing your charge, you do not need to repay the disputed items on your credit statement. The disputed items cannot be reported to credit agencies either. However, you are still liable as usual for every other purchase.

After you submit your dispute request in writing, the card issuer is obligated to acknowledge the receipt of your dispute within 30 days, and resolve the dispute within 90.


Following Up

Even after you report the credit card loss or theft, you still have work to do. Closely review your monthly billing statement for at least a few months after your card was lost or stolen for any more unauthorized purchases. If they continue to appear, call and write your credit card issuer again.

Also, just reporting the error to the credit card issuer may not be enough. Your bank or the credit card company may refuse to acknowledge that a purchase on the card is not made by you, and continue to pursue the debt. In this case, refer to the article How to Dispute Charges on Your Credit Card Statement.
Last Updated on Tuesday, 21 December 2010 06:29