Lost or Stolen? How to Handle Credit Card Issues

If your credit card has been lost, stolen, or misused in anyway there are a few things you can do to help yourself. You will be covered under the Consumer Credit Act parts 83 and 84. We will explain that information below so that you can get your life back to normal.

Lost or Stolen: When you realize that your credit card is missing you need to report the loss to the issuing company right away. You don’t want to wait as this can be seen as neglect on your part. By looking at your credit card agreement or going online you can find the name of the person as well as the number that you need in order to report the loss. On your agreement there should be the name, address, and telephone number of the person you need to speak with. If this isn’t prominent you are not liable for any misuse of the card. Once you have notified the company of the loss you are no longer liable for any charges that may come later. The credit card company might require oral notice as well as written notice within 7 days. If they do you must make written notice to make the phone call effective.

The liability: The liability will depend on the person responsible for the misuse. If someone gained your card with your permission your liability will be limited. In other words if you gave the card to your daughter and they spent money on items they were not supposed to as well as those they were, you could be liable for the amount. You gave permission for the use of the card.

If your card was lost or stolen and used without your knowledge you are only liable for 50 pounds. You will not have liability for the extent that the card was used. Unless the credit card company can show that you authorised the purchases you will be re- credited the amount spent.

If the card was stolen you do need to notify the company, but in the meantime if it has been used to purchase goods on the phone you will be entitled to a full reimbursement. If it has been used in a department store you will be liable for 50 pounds.

Advice: When you get a new card make sure that you have the agreement in a safe and easy to reach place for such incidents. As soon as you discover the card has been lost, stolen or misused you need to notify the company by phone and follow their procedures. Don’t give your card to anyone. If you feel that person needs to use the account issue an additional card with their name. Cut up the card if you decide not to have the account anymore, don’t throw it away.

Back To Financial News May 2008

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