FTC FACTSfor Consumers

CREDIT

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Credit, ATM and Debit Cards:

What To Do If They're Lost or Stolen

1-877-FTC-HELP

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any 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

use 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’s 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.

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.

Credit 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. If a thief uses your cards

before you report them missing, the most you will owe for unauthorized charges

is $50 per card. Also, if the loss involves your credit card number, but not the

card itself, you have no liability for unauthorized use.
Facts for Consumers

After the loss, review your billing statements

carefully. If they show any unauthorized

charges, it’s best to send a letter to the card

issuer describing each questionable charge.

Again, 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.

ATM or 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’s 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

don’t 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 overdrafts. 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’ve 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.

Don’t use your address, birthdate, phone or

Social Security number as the PIN and do

memorize the number.

The following suggestions may help you protect

your credit card and your ATM or debit card

accounts.

For Credit and ATM or Debit Cards:

● Be cautious about disclosing your account

number over the phone unless you know

you’re dealing with a reputable company.

● Never put your account number on the

outside of an envelope or on a postcard.

● Draw a line through blank spaces on

charge or debit slips above the total so the

amount cannot be changed.

● Don’t sign a blank charge or debit slip.

● Tear up carbons and save your receipts to

check against your monthly statements.

● Cut up old cards — cutting through the

account number — before disposing of

them.

● Open 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
Facts for Consumers

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.

● Keep a 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.

● Carry only those cards that you anticipate

you’ll need.

For ATM or debit cards:

● Don’t carry your PIN in your wallet or

purse or write it on your ATM or debit

card.

● Never write your PIN on the outside of a

deposit slip, an envelope, or other papers

that could be easily lost or seen.

● Carefully 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.

● Periodically check your account activity.

This is particularly important if you bank

online. Compare the current balance and

recent withdrawals or transfers to those

you’ve recorded, including your current

ATM and debit card withdrawals and

purchases and your recent checks. If you

notice transactions you didn’t 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’s 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 use.

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’ve called in the loss to the

service? If not, you could be liable for unauthorized charges or transfers.

For More Information

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
Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

June 2002

F C EDERAL RADE OMMISSION T FTC OR HE ONSUMER

1-877-FTC-HELP www.ftc.gov

Facts for Consumers

holding companies, and branches of foreign

banks:

Division of Consumer and Community Affairs,

Stop 801

20th and C Streets, NW

Washington, DC 20551

202-452-3693

www.federalreserve.gov

Federal Deposit Insurance Corporation

Regulates state-chartered banks that are not

members of the Federal Reserve System:

Division of Compliance and Consumer Affairs

550 17th Street, NW

Washington, DC 20429

877-ASK-FDIC (275-3342) toll-free

www.fdic.gov

National Credit Union Administration

Regulates federally chartered credit unions:

Office of Public and Congressional Affairs

1775 Duke Street

Alexandria, VA 22314-3428

703-518-6330

www.ncua.gov

Office of the Comptroller of the Currency

Regulates banks with “national” in the name or

“N.A.” after the name:

Office of the Ombudsman

Customer Assistance Group

1301 McKinney Street, Suite 3710

Houston, TX 77010

800-613-6743 toll-free

www.occ.treas.gov

Office of Thrift Supervision

Regulates federal savings and loan associations

and federal savings banks:

Consumer Programs

1700 G Street, NW

Washington, DC 20552

800-842-6929 toll-free

www.ots.treas.gov

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) toll-free

www.ftc.gov

The FTC works for the consumer to prevent

fraudulent, deceptive and unfair business

practices in the marketplace and to provide

information to help consumers spot, stop and

avoid them. To file a complaint or to get free

information on consumer issues, visit

www.ftc.gov or call toll-free, 1-877-FTCHELP (1-877-382-4357); TTY: 1-866-653-

4261. The FTC enters Internet, telemarketing,

identity theft and other fraud-related complaints

into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal

law enforcement agencies in the U.S. and

abroad.