Unauthorized Credit Card Charges

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Unauthorized Credit Card Charges

Credit card fraud occurs when your card is used in a manner that is not allowed by your credit card agreement. In most cases, it happens when someone else uses it without your permission, such as during identity theft.

If you act quickly and properly, you can limit your liability for unauthorized charges.

If you lose your card, your liability is very limited, provided that you notify the card issuer that it is lost. The same goes for theft. If you notify the credit card issuer:

• Within 30 days, you are not liable for any of the charges made after the notification.
• After 30 days, you may be liable for all charges before you made the notification (but not after).

The maximum you are responsible for paying is $50. Some banks and other credit card issuers even waive this amount as a courtesy.

Providing notice

You must provide your notice in writing. The day you deposit your notice in the mail or take it yourself to the card company is legally considered the day you made notification. If you are ill or there is another extenuating circumstance, the notice deadline may be extended for you.