Any Value in Credit Card Loss Protection Offers?

By: loubelle

They make it sound like you are open to huge liabilities if you don't take up their offer against the loss of your credit card, right? Well, relax. This simply is not true.

First of all, know your rights. In accordance with Federal Law, you cannot be made liable for more than $50 in unauthorized charges if you report a lost or stolen credit card immediately. The limit goes up to $200 if you don't report the loss within two days. See our related article about "Loss of ATM or Credit Card", which gives you all the instructions and suggestions on how to minimize your exposure.

Next, make sure you are informed. Read your credit card contract carefully or call customer service and ask the direct question about any liability on your part if your card is lost or stolen. If you are not protected, change credit cards. Make notes or highlight the information, along with the phone number to report the card missing and staple it on the inside front of your file folder for easy reference when you are in the panic mode.

Why does my credit card company send me Loss Protection Offers? The answer is simple. They hope to play on your fears and sell you a new service. Once you are informed about your legal rights and your free protection as a cardholder, you are in control. If called, you can assert your understanding of the protection you already have, thus denying any need to pay for extra protection. If you receive solicitations in the mail, you can toss them.

Beware of fraud! Except for the federal laws that are universally applicable to all US credit cards, only the issuing company may dictate the protection policies. Never engage in a conversation with an unsolicited caller about credit card protection and never reveal any account information or personal information. Any second party offers are completely invalid and should be treated as such, whether received by phone or mail. Further, it is likely that the person is trying to conduct credit card fraud, by preying on your fear of risks. Again, once you know your rights and are informed about your card(s) protection, you can more easily fend off these predators.

Review our Reference Library for more informative articles about credit cards and other financial subjects.

visit www.parkavecredit.com for more info

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