Lost or stolen ATM, debit and credit cards - what to do
Do you know what your personal liability is if your credit, ATM or debit card is lost or stolen? A great consumer alert on the Federal Trade Commission's website tells you everything you need to know.
First, it is important to report your loss or theft as soon as you notice it. Delaying can cost you money. It is also important to note that different rules apply to credit cards versus ATM and debit cards.
If you report the loss of your credit card before it is used, the card issuer cannot hold you responsible for any unauthorized charges. If your cards have already been used by the time that you report the loss, you can be held responsible for the charges but only up to a maximum of $50 per card. If the loss involves your credit card number (and not the card itself) you would not be responsible for even the $50.
Debit and ATM cards operate under a different set of rules. If you report the loss of an ATM or debit card before it is used, the card issuer cannot hold you responsible for any unauthorized transfers. If your card is used before you have a chance to report the loss, the amount that you may be responsible for can vary quite a bit. If the loss is reported within two days after you notice the card is missing, the same $50 limit that applies to credit cards would apply. However, if you delay, your liability could be much higher. If you don't make the two day window, you could be on the hook for up to $500. According to the FTC website, you could be responsible for an unlimited amount (the balance in your account and the unused overdraft protection line....) if you do not report the loss within 60 days of receiving the bank statement that shows the unauthorized withdrawals. If only your card number is stolen (and not the actual card itself) you would be responsible only for those amounts that happened 60 days or more after your receive your statement.
The FTC website is a great consumer resource. Many people are familiar with the site because it is the "official" site to order free credit reports but there are a lot of very helpful consumer alerts on a number of different topics. Check it out!
