How to Set Up a Credit Card Restitution Account
Fraudulent credit card charges occur in a variety of situations, most often when someone has stolen your card or card number with the intent to steal. However, fraud sometimes occurs when you have given someone use of your credit card for a specific purpose---usually business related---and the card is used for personal charges that you did not authorize. This situation typically happens with business accounts that are willfully misused by an employee, but can also happen with personal accounts. Assuming the person misusing the card admits responsibility, your liability for the charges can be rectified with the use of a restitution account.
- Difficulty:
- Moderate
Instructions
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1
Call your credit card company as soon as you become aware that unauthorized charges were made on your account. It will be in your best interest to also close the account to prevent further unauthorized charges from occurring.
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2
Call the three major credit reporting companies--Equifax, Experian and Trans Union---and request that a fraud alert be placed on your report. This will enhance your ability to dispute any further unauthorized charges.
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3
Fill out and submit to your credit card company an affidavit of fraud. Most companies will have this form available for downloading from their websites. Your credit card company will not begin a fraud investigation until this form is received.
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4
Cooperate with the investigation conducted by your credit card company, especially with regard to the wrongdoer's willingness to take responsibility for the unauthorized charges.
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5
Verify with your credit card company that the unauthorized charges have been removed from your account and made into a separate restitution account that is solely the responsibility of the wrongdoer. Request confirmation of this in writing.
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1
Tips & Warnings
Every credit card company will have different procedures for handling a fraud claim. However, three essential aspects of all fraud claims will involve notifying your company as soon as you suspect fraud, reporting the important facts regarding your suspicions in writing, and following up on the matter until you receive written confirmation from the credit card company that you will not be responsible for the fraudulent charges.
Even if the wrongdoer fails to admit responsibility, once you file the affidavit of fraud and fully cooperate with the credit card company's investigation, the unauthorized charges should be removed from your account.
It is your decision whether or not to file a police report, which may seem to be a necessity if the person who made the unauthorized charges fails to admit responsibility. However, do not threaten to take the matter to the police in order to induce an admission of responsibility--this can be construed as extortion and could get you in trouble. Give the person an opportunity to take responsibility and if he fails to do so, then report the matter to the police without any further discussion of the matter with him.
