Everybody loves the convenience of credit cards. Seriously - everybody. That means you and me and...and that guy who just stole your card! So what do you do now? You can go through the five stages of grief, but why don't you skip denial and go straight to acceptance. You there yet? Good. Now here's what you do in the instance that your credit card is stolen, provided by the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA).
The first thing you should do is make a quick phone call to the credit card's issuer. Most companies have a toll free number you can call 24/7 (this happens more than you'd think) It's also a good idea to follow up the call with a letter, including the account number, when you noticed it was missing, and the date you first reported the loss (rememeber that phone call?).
Some homeowners insurance policies even cover liability for card thefts, but if your one of the unlucky few, some insurance companies will allow you to change your policy to include this protection.
According to the FCBA (look up in case you forgot the acronym), you cannot be held liable for more than $50 if the thief uses the card before you report it, and if you report it before he starts buying those big screen TVs, then your not responsible for anything! Additionally, your not responsible if your credit card number (not the physical card) is stolen then you are not liable for any ensuing charges.
Now when you get that billing statement, it's important not to avoid it like the plague. Instead, treat it as your son's report card (the one who's been faking sick for a month and who rationalizes that junior colleges aren't that bad after all), and open it with an open mind. Now if you see those F's (or unauthorized charges), it's best to send a letter to the card's issuer describing each questionable charge. Just as a side note, it's best to avoid sending this letter to your son's principal. It's actually quite important where you send it, seeing as each card provider offers an address for billing errors, it would be ill advised to send it to where you usually send your payments unless you are specifically directed to do so.
Now does all this sound like fun or what? No? Well then perhaps you should always know where your credit cards are and keep them secure. Unless you know that your dealing with a reputable company, avoid disclosing your account number over the phone and never ever put your account number on the outside of an envelope or a postcard. Also make sure that you tear up carbons and cut up old cards. Keep a record of your account numbers, expiration dates and telephone numbers of each card issuer away from the physical cards!
