Many people find it easy and convenient to use credit cards
and ATM or debit cards. The Fair Credit Billing Act (FCBA) and the Electronic
Fund Transfer Act (EFTA) offer procedures for you to follow if your cards are
lost or stolen.
Limiting your financial loss
Report the loss or theft of your credit cards and your ATM
or debit 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 is 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. Keep copies of any letters you send.
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.
card loss or Fraudulent charges (FCBA)
Your maximum liability under federal law for unauthorized
use of your credit card is $50.
If you report the loss before your credit cards are used,
the FCBA says the card issuer cannot hold you responsible for any unauthorized
charges. Also, if the loss involves your credit card number, but not the card
itself, you have no liability for unauthorized use.
After the loss, review your billing statements carefully. If
they show any unauthorized charges, it is best to send a letter to the card
issuer describing each questionable charge.
Tell the card issuer the date your card was lost or stolen,
or when you first noticed unauthorized charges, and when you first reported the
problem 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.
debit card loss or fraudulent transfers (EFTA)
Your liability under federal law for unauthorized use of
your ATM or debit card depends on how quickly you report the loss. If you
report an ATM or debit card missing before it is used without your permission,
the EFTA says the card issuer cannot hold you responsible for any unauthorized
transfers. If unauthorized use occurs before you report it, your liability
under federal law depends on 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 do not report the loss within
two business days after you discover the loss, you could lose up to $500
because of an unauthorized transfer.
You also risk unlimited loss if you fail to report an
unauthorized transfer within 60 days after your bank statement containing
unauthorized use 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
However, for unauthorized transfers involving only your
debit card number (not the loss of the card), you are liable only for transfers
that occur after 60 days following the mailing of your bank statement
containing the unauthorized use and before you report the loss.
If unauthorized transfers show up on your bank statement,
report them to the card issuer as quickly as possible. Once you have reported
the loss of your ATM or debit card, you cannot be held liable for additional
unauthorized transfers that occur after that time.
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 protection of ATM and
debit cards that involve a Personal Identification Number (PIN), keep your PIN
a secret. Do not use your address, birthdate, phone or Social Security number
as the PIN and do memorize the number.
Mailboxes are a common source of credit cards, checks and
other negotiable items for fraud artists. Consider a locking device for your
The following suggestions may help you protect your credit
card and your ATM or debit card accounts.
For credit, ATM and debit cards
cautious about disclosing your account number over the phone unless you know
you are dealing with a reputable company.
your account number on the outside of an envelope or on a postcard.
line through blank spaces on charge or debit slips above the total so the
amount cannot be changed.
sign a blank charge or debit slip.
leave cards or card receipts (which often have the card number on them) in
keep cards out of sight.
after each purchase the card is returned, and make sure it is the right card.
lend a card to a friend.
carbon copies and save your receipts to check against your monthly statements.
cards and destroy expired cards.
old cards – cutting through the account number – before disposing of them.
Advise your financial institution in writing that the card is no longer wanted.
monthly statements promptly and compare them with your receipts. Report
mistakes or discrepancies as soon as possible to the special address listed on
your statement for inquiries. Under the FCBA (credit cards) and the EFTA (ATM
or debit cards), the card issuer must investigate errors reported to them
within 60 days of the date your statement was mailed to you.
record – in a safe place separate from your cards – of your account numbers,
expiration dates, and the telephone numbers of each card issuer so you can
report a loss quickly.
cards as if they were cash. Carry only cards that you anticipate you will need.
For ATM or debit cards
carry your PIN in your wallet or purse and do not write it on your ATM or debit
write your PIN on the outside of a deposit slip, an envelope, or other papers
that could be easily lost or seen.
check ATM or debit card transactions before you enter the PIN or before you
sign the receipt; the funds for this item will be fairly quickly transferred
out of your checking or other deposit account.
check your account activity, especially if you bank online. Compare the current
balance and recent withdrawals or transfers to those you have recorded,
including your current ATM debit card withdrawals, purchases and your recent
If you notice transactions you did not make, or if your
balance has dropped suddenly without activity by you, immediately report the
problem to your card issuer. Someone may have co-opted your account information
to commit fraud.
Buying a registration service
For an annual fee, companies will notify the issuers of your
credit card and your ATM or debit card accounts if your card is lost or stolen.
This service allows you to make only one phone call to report all card losses
rather than calling individual issuers. Most services also will request
replacement cards on your behalf.
Purchasing a card registration service may be convenient,
but it is not required. The FCBA and the EFTA give you the right to contact
your card issuers directly in the event of a loss or suspected unauthorized
If you decide to buy a registration service, compare offers.
Carefully read the contract to determine the company's obligations and your
liability. For example, will the company reimburse you if it fails to notify
card issuers promptly once you have called in the loss to the service? If not,
you could be liable for unauthorized charges or transfers.
The following federal agencies are responsible for enforcing
federal laws that govern credit card and ATM or debit card transactions.
Questions concerning a particular card issuer should be directed to the
enforcement agency responsible for that issuer.
Board of Governors of the Federal Reserve System
Regulates state-chartered banks that are members of the
Federal Reserve System, bank holding companies, and branches of foreign banks:
Federal Reserve Consumer Help
PO Box 1200
Minneapolis, MN 55480
Consumer Financial Protection Bureau
Regulates banks and credit card companies that have assets
over $10 Billion:
Consumer Financial Protection Bureau
PO Box 2900
Clinton, IA 52733-2900
Federal Deposit Insurance Corporation
Regulates state-chartered banks that are not members of the
Federal Reserve System:
Consumer Response Center
1101 Walnut Street
PO Box 111
Kansas City, MO 64106
(877) ASK-FDIC (275-3342)
National Credit Union Administration
Regulates federally chartered credit unions:
NCUA Consumer Assistance Center
1775 Duke Street
Alexandria, VA 22314-3428
Office of the Comptroller of the Currency
Regulates banks with "national" in the name or
"N.A." after the name, federal savings banks, and federal savings and
OCC Customer Assistance Group
1301 McKinney Street, Ste. 3450
Houston, TX 77010
Federal Trade Commission
Regulates other credit card and debit card issuers:
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
(877) FTC-HELP (382-4357)
Wisconsin Department of Financial Institutions
Regulates state chartered financial institutions located in
Bureau of Consumer Affairs
201 W Washington Ave, Ste. 500
PO Box 8041
Madison, WI 53708-8041
(Some information taken from the Federal Trade Commission
fact sheet “Credit, ATM and Debit Cards: What to do if they’re Lost or Stolen”)