What Happens If My Credit Cards Are Stolen?

If your credit cards are stolen, report the theft right away.

If your credit cards are stolen, thieves may try to use them to make purchases or open new lines of credit using your personal information. Reporting the theft in a timely manner minimizes your liability for these potential problems.

Liability

Report the theft immediately to your credit card companies, local police and the Federal Trade Commission, which investigates identity theft. The sooner you call, the better off you will be: You will have zero liability if you notify authorities before the thief makes any charges, and only $50 worth of liability per card if you file your report after the thief starts spending, according to September 2010 federal law. If she steals only your credit card numbers, rather than your physical cards, you will not be liable for anything. If you wait more than a year to report the theft, however, it may be considered reckless behavior -- and your credit card companies may ask for their money back.

Follow-up

After you call your creditors, follow up with a postal letter to their fraud departments, stating the dates and times you noticed and reported the theft. Use certified mail to ensure receipt, and keep copies of these letters for your personal files.

Considerations

If you have homeowner's insurance, check to see what your policy covers. Some cover credit card thefts; if yours doesn't, check with your policy issuer to see if you can add it.

References

• FTC: Credit, ATM and Debit Cards: What To Do If They're Lost Or Stolen
• Bankrate: Stolen Credit Card

Resources

• FTC: Identity Theft