Contact your credit card issuer. If your credit card information has been stolen, contact your credit card issuer as soon as possible. The sooner you let your card issuer know your credit card has been stolen, the less likely it is you’ll have to pay for any charges. If you wait until after you’ve been billed for the charges, you may face up to $50 in credit card charges.

Sometimes thieves open new credit cards in your name. If this is the case, contact the company who issued the card to report the identity theft. You may need to provide a police report or identity theft affidavit to prove that you were indeed a victim of credit card fraud.

Any account that’s been or could be used fraudulently should be closed immediately to prevent future charges.

File a police report. More and more local police stations are adopting procedures for handing credit card fraud and identity theft. Call your local police station to report that your credit cards have been stolen. If they are uncooperative, try working with another police department in your area. For example, you might try the county police station.

File an identity theft affidavit. The Federal Trade Commission (FTC) provides an identity theft affidavit that many banks will accept as proof that you’ve been a victim of credit card fraud. You’re not required to file the form, but it will help the FTC crack down on identity thieves. It will also give your credit card company and the credit bureaus the information they need to handle your identity theft case.

The identity theft affidavit is available online at the FTC’s website. You’ll need a PDF reader like Adobe Acrobat to view the file. You can also call 1-877-ID-THEFT to obtain a copy of the form.

Place a fraud alert on your credit report. A fraud alert lets any business who pulls your credit report know that your identity has been compromised. The fraud alert urges these businesses to take extra steps to confirm you are indeed the one applying for credit.

If only your personal information has been stolen and you haven’t had any fraud occur you can place an initial fraud alert on your credit report for 90 days. This initial fraud alert can be done online, by mail, or by phone. Here is information to add a fraud alert at each of the three credit bureaus:

Equifax: Online Instructions
Phone: 1-800-525-6285
Mail: P.O. Box 740241, Atlanta, GA 30374-0241

Experian: Online Instructions
Phone: 1-888-397-3742
Mail: P.O. Box 9532, Allen, TX 75013

TransUnion: (does not have a link to file a fraud alert online)
Phone: 1-800-630-7289
Mail: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

If you have definitely been a victim of identity theft, you can place an extended fraud alert on your credit report for seven years. You must request the extended fraud alert in writing. With your request, include a copy of your driver’s license or state ID and a copy of your identity theft report.

Equifax and Experian both provide online forms you can use to request a fraud alert. Both require a PDF reader. TransUnion doesn’t provide such a form. Instead, you should write to the address above to request an extended fraud alert.

Equifax form for extended fraud alert

Experian form for extended fraud alert

There is no fee to add a fraud alert to your credit report when you do it yourself. However, you may have to pay a third-party service if you decide to hire one to add your fraud alerts.

Order your credit report. If you’ve been a victim of identity theft, e.g. credit card fraud where someone has opened a credit card in your name, you’re entitled to a free copy of your credit report.

Under federal law, you can also receive a free credit report whether you’ve been a victim of credit card fraud or not. Visit AnnualCreditReport.com to receive a copy of your free credit report granted by federal law.

If you don’t have options for a free credit report, you can purchase a credit report from each of the three credit bureaus. It’s best to view all three of your credit reports since not all credit businesses report to all three bureaus.

Enroll in credit monitoring. Credit monitoring services alert you to changes in your credit report, like new credit card accounts or changes in your credit card balances. These alerts can give you an earlier warning to credit card fraud than if you waited for collection calls.

Credit monitoring services range from $10 a month to $30 a month and vary in the services they provide, for example, the number of credit reports you can have monitored. Before you sign up for a credit monitoring service, remember that you can view your credit report for free by using AnnualCreditReport.com.

Related posts:

1. 10 Ways to Avoid Credit Card Fraud
2. How to Get a Free Credit Report
3. 5 Reasons to Check Your Credit Report

Disputing a Credit Card Billing Error

The Fair Credit Billing Act, FCBA, is a Federal law that gives you the right to dispute credit card billing errors with your credit issuer. To exercise your rights, the purchase in question must be for more than $50 and it must have been made in your state or within 100 miles of your current billing address. Before you submit a billing error dispute, first try to settle the issue with the seller.

To dispute a credit card billing error, you must send a letter to your credit card issuer 60 days after the billing statement with the error was mailed to you. The credit card issuer must receive the letter within the 60-day window.

When your letter disputing the billing error, make sure you include your name, credit card account number, the date and amount of the charge you’re disputing, along with a description of your dispute.

Your billing statement typically includes two addresses, one for sending payments, another for correspondence. Send your letter to the address marked for correspondence. Your dispute letter may not be processed if you send it to the payment address. If you can’t locate an address for correspondence, call your card’s customer service and ask for it.

You don’t have to pay the disputed amount while it’s in the dispute process. Your credit card issuer can’t take adverse action against you including charging a late fee, raising your interest rate, or reporting late payments to the credit bureau. The credit card issuer can, however, add a statement to your credit report indicating you have disputed your billing statement. Under the Equal Credit Opportunity Act, other creditors can’t deny credit because you’ve disputed a bill.

Sample Billing Error Dispute Letter

Date

Your Name
Your Address
Your City, State Zip Code

Creditor’s Name
Creditor’s Address
Creditor’s City, State Zip Code

Dear Sir or Madam:

I am writing to dispute an error on my billing statement in the amount of $_______. This amount is incorrect because {give an explanation of why there is an error.}

Please correct this error and any related charges and send a corrected statement to me.

I have included copies of {include a description of any documents you’ve included to prove the disputed item is in error.}

Sincerely,

Your Name

Send your letter via certified mail with return receipt requested so you have proof that the letter was mailed and received within the 60-day window. Keep a copy of the letter for your records. If you send any supporting proof, like receipts or cancelled checks, make sure you send copies and keep the originals for yourself.

What Does Credit Card Issuer Do Next?

Once your credit card issuer receives your billing error dispute letter, they’re required to write back within 30 days letting you know your letter was received. Then, the credit card issuer will do an investigation to determine if the item you’re disputing is actually an error.

The credit card issuer has 90 days to give you a final answer, which could be one of these things. First, your card issuer could correct your bill by removing the charge you disputed and any finance charges or fees associated with the disputed item. Or, they could tell you the bill is correct and let you know why. You’ll be responsible for paying the charge and any finance charges.

Can I Dispute the Error Over the Phone?

You can call your credit card issuer to resolve the error, but to protect your rights under the FCBA, you must follow up in writing. Otherwise, if the dispute time limit passes and your card issuer doesn’t correct the error, you may have no recourse. Your credit card issuer will still be able to charge you for the error. If you refuse you pay, you could be penalized with late charges, an interest rate increase, and a negative credit report entry.

What Types of Errors Can Be Disputed?

There are several different types of errors that can appear on your credit card statement. Here are the ones that are protected by the Fair Credit Billing Act.

• Any unauthorized charges made on your credit card. You could be liable for up to $50 in charges if your credit card was stolen. However, if only your credit card number was used, you will not be liable for anything.
• Any charges that were sent through with the wrong amount.
• Any charges for good or services that weren’t delivered at all, weren’t received as promised, or that you didn’t accept. You cannot dispute credit card charges because of the quality of goods or services received.
• Any math errors, like fees that were added incorrectly.
• Payments, credits, returns that weren’t posted to your account correctly.
• Failure to send billing statements to your current mailing address as long as you sent an update of your address in writing 20 days before the billing period ended.
• Any charges that you’ve asked for an explanation or proof of purchase.

Related posts:

1. How to Handle Credit Report Errors
2. Details on Your Credit Card Billing Statement
3. Four Laws Protecting Credit Card Users