Plastic Panic - Dealing with Credit Card Theft

Someone stole my purse, and it was a major pain! They got about $100 in cash, but the biggest loss was my time. Reconstructing the contents of my wallet was a mind-boggling hassle.

That was about ten years ago, and I was totally unprepared. But I learned from my loss. I will not be caught empty-handed again, even if a stranger snatches my handbag.

Now I'm ready! You can be ready too! Follow these simple steps, just in case.

Make a file.

Remove all the contents of your wallet or purse. Scan or photocopy all credit cards, driver's licenses, passports, identification documents, store membership cards, and other important items. Be sure to copy both sides, marking each item, so you can match fronts and backs. (If toll-free numbers are not listed on the item, write it on the copy.) File all copies together in a convenient, secure spot.

Know your credit card protections.

Most major credit card providers offer a protection service that covers theft and loss. The cardholder may be responsible for the first $50 of unauthorized expenditures. Here's the catch: You have to report the loss of the card, and you have to have the toll-free numbers for doing just that.

Carry minimal items.

Of course, you will have to tote your driver's license or identification card, along with your school or work ID tag with you at all times. However, your passport, Social Security card, and other essential documents are much more secure in your safety deposit box or even a lockbox at home.

Re-filing for official documents is difficult and time-consuming. You have to have serial numbers and more.

Keep a list of store membership cards.

Grocery stores, pet stores, garden stores, and others often register shoppers for discounts and check-cashing privileges. Losing these cards or tags can lead to delays at the checkout counters. Canceling and re-registering is easier, if you have the original numbers.

Many stores now offer tiny tags that fit on customers' keyrings. As long as you retain your car keys, you will keep your store membership cards.

Track travelers' checks.

Scan or copy the list of serial numbers, and place it in a secure place, far removed from your purse or wallet. Everyone knows these can be canceled and replaced, if you have the serial numbers.

Actually, with the advent of debit and check cards, fewer folks are carrying travelers' checks, even overseas. Many hotels, restaurants, and retailers refuse to accept these nowadays.

Forgo credit card protection plans.

For an annual fee, these organizations offer to maintain a list of all of your credit card numbers, in case of loss or theft. When an emergency occurs, you have to contact them, and they agree to contact all of your credit card issuers, provided you have registered the accounts with them in advance.

Do you really want anyone to have a list of all your credit card information in one place? If you keep this information on your own, you can quickly make these calls yourself, instead of waiting on a third party to do so.

What if your credit cards actually are stolen?

Don't panic!

Notify your credit card companies immediately. (These may be your bank, American Express, department stores, or other providers.) Hopefully, you have kept a copy of the front and back of each credit card, or at least, a copy of your latest monthly statement for each account. Call the toll-free number for every card, and tell them what happened.

Be advised that you may be expected to cover the first $50 of unauthorized expenses on each card. This may vary, depending on the type of card and the company with which it is affiliated. For example, debit and credit cards may have different minimums.

By reporting your loss promptly, you will minimize your personal risk.

Each issuing company will cancel your original account number. Anyone trying to use your card will be refused and probably arrested.

You will likely be issued a new card with a new number. You will need to convey this information immediately to any organizations who bill your card automatically. This may include insurance companies, your internet service provider, and others. If you fail to do this in a timely manner, you may experience a disruption in service.

In addition, you will need to update your credit information on all your favorite shopping websites, if you have stored your account numbers with them. You may wish to check the box that indicates you do NOT want this information stored, for greater security, although this means you will have to enter your account numbers every time you order.

If your old card should turn up somehow, destroy it. Cut it up with scissors. By then, the account number will have been canceled.

Guard your cards closely, for your own protection!