Having a credit card stolen is one of the most dreaded events. But, it's not a time to panic. It's a time for swift action. It's best to report a stolen credit card as quickly as possible. The sooner you report your stolen credit card, the less likely it is that you'll be responsible for any fraudulent charges.
Your Responsibility for Stolen Credit Card Charges
The Fair Credit Billing Act (FCBA) is the Federal law that covers stolen credit cards. Under the FCBA, you won't be held liable for any charges if you report the theft before any fraudulent charges are made. However, you could be liable for up to $50 if the thief uses your stolen credit card before you report the theft.
If the fraudulent charges are made using only your credit card number and not your physical credit card, you won't be liable for any of the fraudulent charges.
How To Detect Stolen Credit Card Charges
Technology makes it easier than ever to detect fraudulent charges made with a stolen credit card. Check your account frequently, over the phone or online to make sure no unauthorized charges have been made. Check your account even if you don't have a stolen credit card since thieves can make charges with just your credit card number.
Reporting a Stolen Credit Card
If you notice unauthorized charges made on your stolen credit card or stolen credit card number, contact your creditor as soon as possible. Let them know whether your credit card has been stolen and the details of the fraudulent charges.
Follow up by sending a letter including the date the credit card was stolen, the date you reported the stolen credit card, and any unauthorized charges that have been made on your account. Make sure you send this letter via certified mail with return receipt requested to the creditor's address for correspondence. This address is often different from the payment processing address.
Keep a copy of your credit card number and the phone number for its customer service department. Store it in a safe place where you can access it to quickly contact your creditor if your credit card is stolen.
