Stolen Credit Card Liability

Losing one’s credit card can be a very agonizing event.
 
    
Unscrupulous people abound nowadays, with the situation exacerbated by the disappointing economic environment. The fact of the matter is, if your credit card falls in the wrong hands, there is a strong likelihood that it would be used for illegitimate purposes. This is not helped by the fact that a lot of employees overlook security procedures and measures when processing credit card payments, making it easier for people to use stolen credit cards. The World Wide Web is also another fertile ground for illicit transactions, with individuals almost effortlessly using hacked credit card codes to purchase items online.

These are just prime reasons why losing a credit card could be nerve-wracking. So if you can’t find your credit card and you suspect that it’s gone, don’t be surprised if one day you’ll receive a bill say for a gaming console you don’t even own.
To a worried consumer the question is, do I have to pay say for a top of the line laptop that was shipped to someone whose name I can’t even pronounce living in a foreign continent who apparently used my credit card information? Or should I shoulder the cost of an expensive sound system whose brand I don’t even know existed? Is there a thing such as a stolen credit card liability?

Fortunately for consumers who lost their credit cards, legislators have your backs covered. Lawmakers have actually reduced stolen credit card liability to a minimum. Under the law, the maximum stolen credit card liability of a cardholder for unauthorized credit use is $50. Say you lost your credit card and then you got a bill asking you to pay for items you didn’t purchase, regardless if it’s worth thousands of dollars, the most that credit card issuers can bill you is $50. There are even credit card companies who actually waive the $50 stolen credit card liability fee just so that they could retain customers. And if you inform your credit card issuer about your lost credit card before the unauthorized purchases were made, the law protects you from being charged for any illegal purchase/s.

For unauthorized online purchases, say someone hacked into your credit card account and used it to pay for things on the Internet, the law will not hold you accountable and you cannot be charged for any of the completed online purchases.

Knowing your rights as cardholders and consumers can save you from any unnecessary anguish and distress. There is such a thing as stolen credit card liability but its repercussions are minimal. At any rate, keep your credit cards in accessible, but secure places and always check your credit card statement balances for suspicious entries.


  

Source: Credit Cards For People With Bad Credit Rating


 Print this page
  |     Bookmark this page