Posted on August 10, 2016
Many people know the feeling of losing a credit card, and too many know what it’s like to see charges you aren’t responsible for on your statement. Luckily, there are federal laws that place limits on your liability for unauthorized credit card charges, ATM withdrawals and debit purchases. The first thing you should do if you’ve noticed unauthorized charges on your account is to notify your bank as this is the best way to limit your liability.
Many people worry when their credit cards go missing or when unauthorized charges appear on their credit card statement, but if this has happened to you, you shouldn’t worry. Your credit card issuer will not hold you liable for those charges as long as you let them know that you did not authorize those payments within 30 days. They will remove those charges, cancel the stolen credit card and send you a new one.
If your debit card gets lost or stolen, you should notify your bank right away to minimize any liability you have for unauthorized charges. Under the EFTA, your liability for lost or stolen ATM or debit cards is:
Always report unauthorized purchases rights away so that your account can be closed and the fraudulent charges can be refunded.
photo by 401(k) 2012 on flickr