Listening to a steady stream of advice flowing from my grandmother’s lips during the entirety of my growing up years, you’d have thought she published the world’s largest collections of “Maxims to Live By.” Of course, if the world had listened to and followed her wise counsel contained in such memorable statements as “Neither a borrower nor a lender be,” I wouldn’t be writing this blog.
Because I enjoy the convenience of credit and debit cards, or perhaps because avoiding credit wasn’t a “lesson I learned early and harmlessly,” I have to face the fact that having my credit card or my credit card number stolen is a very real possibility as it is for anyone who carries credit cards. I’m not exempt just because I write this blog. However, knowing “an ounce of prevention is worth a pound of cure,” there are steps both you and I can take prior to having cards stolen that will help if that event ever takes place.
First, carry a minimum number of cards in your wallet and never carry a social security card.
Second, it’s recommended that you keep a photocopy of both sides of every card you own. This file of paperwork should be kept in a safe place separate from where you keep your credit cards. If an actual photocopy of every card seems like too much paper to keep track of, you could instead keep a one-page listing of the pertinent information. This list would include the name of the institution issuing your credit card, your credit card account number, and the phone number to call to report a lost or stolen card. This list needs to be on a hard-copy, paper format. (If you keep such a list of information stored on your computer, caution needs to be taken in doing so…but that’s another blog entry.)
When it comes to stolen credit or debit cards, “timing is everything.” A quick response to the situation is your best protection.
If the worst happens and your wallet is stolen, you immediately need to use your list to phone the companies that issued your stolen credit cards to report them as stolen. Timing is essential here. The Fair Credit Billing Act (FBCA) limits your liability to $50 on a credit card reported as stolen. The Electronic Funds Transfer Act (EFTA) limits the amount of your liability on fraudulent transfers or ATM withdrawals based on how quickly you report the ATM/debit card as stolen. If the loss is reported within 48 hours, your liability is only $50, but if the time period is more than 2 business days, you could be liable for up to $500. If you neglect to report unauthorized use of your ATM/debit card within 60 days of the bank statement showing the unauthorized access, you will be liable for the entire loss.
In dealing with stolen credit cards, it is best to document in writing everything that is done. Record the date and time of your phone calls to the credit card issuers. Be sure to record the name and ID # of the representative handling your report. Take notes on your phone call. After completing the rest of the steps necessary in dealing with the theft of your credit cards and wallet, summarize the content of your phone call in a written letter to the credit card company. Keep a copy of each of the letters you sent, and perhaps consider mailing the letters return receipt or signature confirmation. The point is to create a paper trail that documents your actions just in case anything comes up for dispute at a later time.
After reporting the stolen cards to the issuing company, file a report with your local police (or, if you are away from home, with the police where the theft took place).
Be sure to contact each of the national credit reporting agencies by phone. Report your stolen credit cards and request a credit freeze be put on your account. You will create a password that must be used to remove the freeze. If your identity has been stolen, this service will be free. Otherwise, each credit agency will assess a small fee both to initiate and to remove the freeze. Again, it is wise to document these phone calls and mail a follow-up letter summarizing the requested action to each of the credit reporting agencies.
Contact your state’s department of motor vehicles to report your license as stolen and obtain a new license. Be sure the license number is different from the number on the stolen license. Contacting the social security office is essential if you broke the rules and carried your social security card or number in your wallet. In this age of identity theft, it might be wise to speak with one of their representatives about the loss of your wallet even if you didn’t have your social security card tucked inside.
Once the immediate, initial wave of contacts reporting the loss of your credit or debit cards has been made, you should keep a vigilant watch on your bank statements, credit card statements, and other bills. If there is any unauthorized activity, report it immediately.
Being prepared and acting quickly will ensure you minimize your loss in the event of stolen cards. Like grandma always said, “Wise people are diligent.”
Similar Posts:
- Your Identity is Stolen: What Should You Do?
- Credit Card vs. Smart Phone: The Showdown
- Removing Credit Inquiries
- Walmart Debit Card
- How to Prepare for a Lost or Stolen Credit Card
