FCBA and EFTA - Important Laws

The impact or shock of a credit card lost or stolen can be definitely minimized with FCBA & EFTA. The nightmare can be bearable once you are aware that the laws are designed keeping in mind your greatest interest. But you can take the protection of law only when you are aware of it. FCBA (Fair credit billing act) and EFTA (Electronic fund transfer act) are implemented to help you on such occasions when you misplace your credit card or it gets stolen.

The questions that usually cloud in our minds are:

What is the punishment for it?
Will I have to pay heavily for it?
Will I be held responsible for the unauthorized use?

Fraudulent Transfers (EFTA) on Debit Card Loss or ATM card:

Your liability under the federal law for unauthorized exercise of your debit card or an ATM card depends on how quickly you report the loss. If you report a debit card or an ATM card missing before it's used without your permission, the EFTA says the card issuer cannot hold you responsible for any unauthorized transfers. If unauthorized use occurs before you report it, your liability under federal law depends on how quickly you report the loss. The law states you will be charged only 50 $ for unauthorized exercise of your credit card or ATM card, but that's only if you report the loss before your credit cards are exploited. The FCBA or Fair Credit Billing Act states that the card issuer cannot hold you responsible for any sort of unauthorized charges. If a thief operates your cards before you report them missing, the most you will owe for unauthorized charges is 50$ per card. Also, if the loss involves your credit card number only, but not the card itself, you have no financial obligation for unauthorized use.

Nowadays almost every second person is seen to use a Credit card or an ATM card. With the increase in the usage of plastic money, the rate of credit card loss or stolen has also escalated on the graph.

When a person undergoes a loss or a theft of his credit or ATM card he should do the following:

Report the loss or theft of your credit cards, ATM or debit cards to the card issuers as quickly as possible.
Many companies have toll-free numbers and 24-hour service to deal with such emergencies. Avail the services.
It's a good idea to follow up your phone calls with a letter. Include your account number, when you noticed your card was missing and the date you first reported the loss.
You also may want to check your homeowner's insurance policy to see if it covers your liability for card thefts. If not, some insurance companies will allow you to change your policy to include this protection.