| Lost and Stolen Credit Cards
Immediately call the card issuer when you suspect a credit or charge card has
been lost or stolen. Many companies have toll-free numbers and 24-hour service to
deal with such emergencies.
By federal law, once you report the loss or theft of a card, you have no further
responsibility for unauthorized charges. In any event, your maximum liability
under federal law is $50 per card.
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Complaints
To complain about a problem with your credit card company, call the company first and
try to resolve the problem. If you fail to resolve the issue, ask for the name, address
and phone number of its regulatory agency.
If the word national appears in the name or the letters N.A. appear after the name,
the Office of the Comptroller oversees its operations.
To complain about a credit bureau, department store or other FDIC-insured financial
institution, write to the Consumer Response Center. You may also file a complaint
online at www.ftc.gov.
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Beware: Offers to Skip a Payment
If your credit company invites you to skip a monthly payment without a
penalty, it is not doing you a favor. You will still owe finance charges on
your unpaid balance. And interest could be adding up on any purchases you make
after the due date you skipped.
Beware: Teaser Rates
Some cards are advertised with very low introductory interest rates called
teasers. The rate is good for a short period of time. If you know you can pay
what you owe while the low rate is in effect, it could be a good deal. But if
the teaser time runs out and you still owe money, you could end up paying a
higher rate than you might have without the special introductory rate. Just one
late payment could also cancel the teaser rate.
Beware: Credit Insurance
When you take out a loan for a big purchase, a salesperson may try to
sell you credit insurance. Your credit card company may also encourage you
to purchase credit insurance. The coverage may be promoted as a way for you to
protect yourself if your property is damaged or lost. Other credit insurance
offers promises to make loan payments if you are laid off, become disabled or
die. It is almost always better to buy regular property, life or disability
insurance instead of credit insurance.
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From the Federal Citizen Information Center
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