How to Handle Your Credit Cards Being Stolen

When your credit cards are stolen or used without your authorization, you can incur charges and penalties. However, there are steps you can take to prevent or limit your losses. Read on to learn more.

Difficulty: Moderate

Instructions

1. Call and cancel all cards Immediately. The quicker you inform the credit card companies, the quicker they can close your accounts and prevent unauthorized use of your cards.

2. Create a paper trail. Send a follow-up letter to each credit card company confirming your phone call to report the stolen credit card. Send your letter certified, with return receipt, to have proof the letter was received by the company.

3. Report the stolen card(s) to your local law enforcement agency. In the event that the credit card company requires such a report in order to handle any claims, you will have it easily accessible.

4. Put an alert on your credit reports. Also order copies of your credit report to ensure that no further fraud is being perpetrated. You are entitled to a free report each year from each of the three major credit reporting bureaus (see Resources below). Keep in contact with them until your problem has been resolved.

5. Follow up by filing a complaint with the Federal Trade Commission if your cards are being used illegally (see Resources below). The FTC can also provide you with other assistance and information if you become a victim of identity theft.

Tips & Warnings

• Make a list of all credit card numbers and the corresponding customer service telephone numbers and addresses. It is easy to forget which cards you have if they are stolen.
• You will be liable for more than $50 in fraudulent activity if you do not report it within 60 days of its appearance on the credit card bill, so monitor credit reports.
• Expect a reply from creditors within 30 days of your complaint. Your grievance should be resolved within 2 billing cycles or 90 days after you send your letter.