- Credit Card
Loss Protection Offers:
They're the Real Steal
October 2000
|
"I got a call from a woman who
said I need credit card loss protection insurance. I thought
there was a law that limited my liability to $50 for
unauthorized charges. But she said the law had changed and
that now, people are liable for all unauthorized charges on
their account. Is that true?"
|
Don't
buy the pitch - and don't buy the "loss protection"
insurance. Telephone scam artists are lying to get people to buy
worthless credit card loss protection and insurance programs. If you
didn't authorize a charge, don't pay it. Follow your credit card
issuer's procedures for disputing charges you haven't authorized.
According to the Federal Trade Commission, your liability for
unauthorized charges is limited to $50.
The FTC says worthless credit card loss protection offers are
popular among fraudulent promoters who are trying to exploit
consumers' uncertainty. As a result, the agency is cautioning
consumers to avoid doing business with callers who claim that:
- you're liable for more than $50 in unauthorized charges on your
credit card account;
- you need credit card loss protection because computer hackers
can access your credit card number and charge thousands of dollars
to your account;
- a computer bug could make it easy for thieves to place
unauthorized charges on your credit card account; and
- they're from "the security department" and want to
activate the protection feature on your credit card.
The FTC advises consumers not to give out personal information -
including their credit card or bank account numbers - over the phone
or online unless they are familiar with the business that's asking for
it. Scam artists can use your personal information to commit fraud,
such as identity theft. That's where someone uses some piece of your
personal information, such as your credit card account number, Social
Security number, mother's maiden name, or birth date, without your
knowledge or permission to commit fraud or theft. An all-too-common
example is when an identity thief uses your personal information to
open a credit card account in your name.
For More Information
To learn more about protecting yourself against credit
card fraud and identity theft, call the FTC toll-free, 1-877-FTC-HELP
(1-877-382-4357) or visit www.ftc.gov
to get the free publications, Credit
and ATM Cards: What To Do If They're Lost or Stolen, Fair
Credit Billing and ID
Theft: When Bad Things Happen to Your Good Name.
The FTC works for the consumer to prevent fraudulent, deceptive and
unfair business practices in the marketplace and to provide
information to help consumers spot, stop and avoid them. To file a
complaint, or to get free information on any of 150
consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357),
or use the online
complaint form. The FTC enters Internet, telemarketing, identity
theft and other fraud-related complaints into Consumer
Sentinel, a secure, online database available to hundreds of civil
and criminal law enforcement agencies worldwide.
|
