Thinking about security is something new for most college students. That’s why you need to read this credit guide. Think of it as a quick course in getting a sound financial life—and building for a great future.
Credit and ATM cards can bring you freedom, security, a way to handle economic
emergencies and much more. But with these newfound advantages come some
responsibilities. These include using your card responsibly and paying your bills on time.
As a responsible cardholder, you should also take steps to prevent fraud and theft.
Fortunately, most fraud can be prevented. You just have to be careful about how
and when you use credit and ATM cards.
AN OUNCE OF PREVENTION
The best way to fight fraud is to prevent it in the first place. That means knowing where
your cards are and keeping them in a safe place. Importantly, you must never keep your
personal identification number (PIN) on or near the card. In a third of all ATM frauds, the
PIN was on the card or in the wallet.
KEEPING CREDIT CARDS SAFE:
·Don’t give your account number over the phone unless you’ve made the call.
·Get a card that has added security features, like photos.
·Never put your account number or PIN on the outside of an envelope or a postcard.
·Draw a line through blank spaces on charge slips above the total to prevent any changes.
·Don’t sign a blank charge slip unless absolutely necessary.
·Tear up carbons from slips and save receipts.
·Always check receipts against your monthly statements. Report any errors
within 60 days of the statement mailing date.
·Make a record of card numbers, expiration dates and phone numbers. Keep this record in a safe place, separate from where you keep your cards. Use this information when you report your cards lost or stolen.
·Carry only the cards you need, especially when traveling.
SAFETY TIPS FOR ATM CARDS
· Choose a personal identification number (PIN) that’s different from other obvious
numbers, like your phone or Social Security Number or your birthday.
· Memorize your PIN and don’t write it on anything in your wallet.
· Never put your PIN on a deposit slip, envelope or postcard.
· Check all ATM receipts against bank statements.
LOST/STOLEN CREDIT CARDS: LIMIT YOUR LOSSES
Most stolen cards are used within 48 hours. So, the sooner you report cards lost or stolen, the less you’ll have to pay. Here’s what you need to do:
·Call your card company immediately to report the loss. Most companies have 24-hour toll free number.
· Follow up your call with a letter, giving your account number, the date you noticed the card was missing and when you called in the report.
If you call the company before the card is used, the Fair Credit Billing Act says you’re not responsible for charges made. If a thief uses your card before you report it, the most you’ll have to pay is $50.
ATM CARDS: TIMING IS EVERYTHING
If someone steals your ATM card and uses it, you could be responsible for up to $500 or
more. You may wonder, “Why so much more, if I’m only responsible for $50 on my credit card?”
The answer has to do with the law. The Electronic Fund Transfer Act (EFTA) states the amount you’re responsible for depends on when you report the loss. Here’s a look at how the EFTA treats different situations:
·You report your ATM card missing before it’s used. The law says you’re not responsible for any unauthorized withdrawals.
· Someone uses your ATM card before you report it. If you make the call within 2 business days of unauthorized use, you won’t have to pay more than $50. But you could owe up to $500, if you don’t report it within that time.
·You don’t report any unauthorized use within 60 days of the bank statement mailing. You could face unlimited losses. And not just withdrawals from your checking account. Someone could drain your line of credit for overdrafts, as well as any accounts linked to your ATM card.
NO MATTER WHAT: CHECK YOUR STATEMENTS
Even after you have reported your ATM and credit cards missing, check your statements. If you find any suspicious charges, notify your bank immediately. Then send a letter listing each charge. Include your account number, date stolen and date reported. It’s very important that you document the incident and send it to the bank as soon as possible.
CARD REGISTRATION SERVICE
This is a service that notifies all your card companies and banks that your cards have been lost or stolen. So, you only have to make one phone call to the service to report a loss. The service will then make all the necessary calls for you.
Most services will automatically order new cards for you as well. The cost ranges from $10 to $35 a year. Be sure to compare offers before you buy. And ask if the service will reimburse you if it doesn’t report the card loss promptly. For more information on financial fraud, write to:
Public Reference at the Federal Trade Commission, Washington, DC 20580. Ask for the free pamphlet Credit and Charge Card Fraud, Fair Credit Billing and Credit Billing Blues.
REMEMBER:
· Never lend an ATM CARD or a CREDIT CARD to anyone.
· Never leave cards or receipts lying around your room, no matter where you live.
· Report a lost or stolen ATM CARD or CREDIT CARD immediately.
Ó Citibank, N.A. 1999
275 Eastland Rd.