Consumers' Rights in Credit Card Fraud
Credit card fraud, the fastest growing white-collar crime, cost U. S. consumers over 50 billion dollars in 2009, according to Penelope Salt, writing on Credit.com. Credit card crime the same year affected 11.1 million Americans. The losses for 2009 increased 12.5 percent over the previous year.
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Some Common Causes
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Credit card fraud begins when a third-party gets access to your credit card information and uses it. This can happen in many ways. So-called on-line phishing sites that pretend to be your bank and ask you to confirm your card information, once you do, they have your account details. Unscrupulous telephone solicitors offer you an attractive price for a common service or consumer item and get your card information that way or you go out to eat or shop and give your card to a waiter or a shopkeeper who copies the information or takes a photo of the card with a cellphone. Similarly, if you fail to shred credit card information before disposing of it; organized groups of thieves go through garbage to get this kind of information; or someone simply finds or steals your card and uses it.
Steps to Take
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As soon as possible, notify your bank with a phone call and a follow-up letter. Most companies have toll-free numbers and 24-hour assistance for lost, stolen or misused card emergencies. A Department of the Treasury consumer FAQs notes that if you report the loss before the use of the card you cannot be held responsible for subsequent losses; that's federal law. Even if you report the problem after the card has been used, your credit card company can charge you no more than the first $50 per card.
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If Your Bank Won't Remove the Charge
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If you've notified your bank of the fraudulent card use and they won't remove the charge, you have a couple of remedies available. You can file a complaint with the Department of the Treasury (see Resources, File a Bank Complaint). When filling out the complaint form be sure to give all the information the Treasury Department asks for. You can also phone the Treasury Department's Customer Assistance Group at 1-800-613-6743 for further guidance.
Non-Bank Credit Cards
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You can't complain through the Treasury Department if your non-bank credit card company won't reverse fraudulent charges. But you do enjoy the same protection under federal law: no charges if you notify the company before the first fraudulent charge occurs, and no more than a $50 liability if the fraudulent charge or charges occurred before you notified them. If the non-bank credit card company won't reverse these charges you can get help by contacting the National Fraud Information Center at 1-800-876-7060.
Dealing with the Three Credit Bureaus
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If someone has misused your credit cards or gotten credit using your identity, immediately notify the three credit reporting bureaus, Experian, Equifax and
TransUnion LLC. (See Resources) Always follow up in writing.
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References
Resources
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