Credit card debt due to fraudulent charges--those not made or authorized by you--can put you in a precarious situation of acting quickly to avoid more charges and disputing the charges already applied to your credit card account. The Federal Trade Commission notes that If your credit card is used by an identity thief, your liability is capped at $50. However, if the fraudulent charges are made by acquisition of your credit card number and not the card itself, you aren't responsible for the fraudulent charges.
Coping with Credit Card Fraud
Step 1
Notify your credit card issuer of the fraud by calling the toll-free number on the back of the credit card. However, to take full advantage of your rights under the Fair Credit Billing Act, you must follow up with the credit card issuer in writing, notes the Federal Trade Commission (see Step 2).
Step 2
Notify the credit card issuer in writing within 60 days after you receive the first bill that reflected the fraudulent charges. The Federal Reserve Board indicates that you should send your correspondence to the address for billing inquiries. In your letter, include your name, account number, that there are fraudulent charges on your bill, and the dates and amounts of the charges that were incurred. Send the letter certified mail, return receipt requested. For a sample dispute letter, see the Resources link below.
Step 3
Give the credit card issuer two billing cycles but no more than 90 days to resolve your complaint after receiving your correspondence. By law, the credit card company must send you written acknowledgment of your dispute within 30 days of receipt, unless the charges have already been resolved.
Step 4
Make sure to make minimum payments toward the balance on the credit card that is not in question. While fraudulent charges are being investigated, the FRB notes that you are not required to pay the amount in question nor any interest applied to it.
Step 5
Follow up to further protect yourself against credit card fraud. The FTC points out that in some cases, victims do everything by the book but spend years trying to resolve problems related to identity theft and advises remaining "vigilant, assertive and organized." Go directly to the top to air your complaints if need be, and make sure to keep copies and notes of written correspondence and telephone conversations. Additionally, the FTC offers a hotline to provide counseling to consumers coping with credit card debt due to fraud: (877)-ID-THEFT.
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