Credit Card Protection

A wise consumer will seek out credit card protection in these days of rampant fraud and identity theft. While some charge account providers take steps to make sure that their clients are safeguarded against fraud and abuse, extra precautions in this area may be a good idea. Many companies monitor the accounts of every client for suspicious activity and will contact an account holder for verification if an unusual charge should come through. If a fraud has taken place, account holders can frequently inform their charge account company about any purchases that the cardholder did not make. In a digital age, perpetrating fraud on innocent citizens is unfortunately very easy. Con artists can take a number of approaches. These approaches may range from the unlawful use of stolen or lost cards, false applications, mail order scams, or telephone cons. Some charge account organizations will also offer cardholders features such as free assistance with identify theft, encryption technology on all online information, and twenty four hour hotlines and alert services. With all of this free security, why should a consumer spend good money on additional credit card protection? While there are legitimate providers of this protection, there are also unscrupulous providers who are poised to prey on innocent and fearful consumers.

The Federal Trade Commission has warned against the activities of some dishonest providers of credit card protection. A telephone scam involving false information regarding supposed changes in the law can be an all too frequent con game. The con artist will warn about the cardholder's new responsibility to pay for charges that they did not make. This caller then goes on to explain that this change in the law makes insurance coverage necessary. The only problem is the law has not changed. While each provider will have different procedures for challenging fraudulent charges, cardholders are not legally liable for charges that they did not make. The most that a cardholder is legally obligated to pay if their account has received unauthorized charges is fifty dollars. Any telephone, e-mail, or online solicitor who makes exaggerated claims of danger from thieves and computer hackers should be ignored. Some scammers will even pose as the security departments of the credit card company itself. Consumers should never share personal information with fraudulent sources of credit card protection. Disclosing personal information with these crooks including charge account numbers, social security numbers, or even addresses and phone numbers, is never a good idea. Rather than offering the individual a safe haven from larceny, these con artists are often gathering information that can be used for identity theft.

If a credit card is stolen, there are specific actions that a cardholder should take. Sometimes the best credit card protection can be found in the quick action of the cardholder when cards come up missing. Obviously, the first thing to do is to notify the charge account company. The customer service phone number that the cardholder will need can generally be found on the customer's billing statement. When the company is contacted, the cardholder will need to supply information including the account number, the date that the card went missing, and the cash amount of the last legitimate purchase along with the date of that purchase. A follow up letter that includes this information is a good idea as well. The reason for the letter is that it supplies written proof that the company was duly notified. In addition to the fifty dollar ceiling on financial responsibility, any charges that are made after the charge account company has been notified of the theft or loss are not the responsibility of the cardholder. Considering the limits on financial responsibility that are put in place by law, a consumer might wonder what additional credit card protection is required. Checking with the charge account company to see what kinds of additional security benefits are available to a cardholder can be useful. The Bible talks about the security that can be found in God. "I have set the Lord always before me: because he is at my right hand, I shall not be moved." (Psalm 16:8)

Of course, there can be other types of credit card protection. Insurance that will pay the cardholder's minimum monthly payments in the event of a financial hardship is readily available. Some charge account companies include this service in with other account services. There may be a steep fee attached to this service, so the wise cardholder will investigate the various services that their account offers. The purpose of these insurance policies is to prevent default when a cardholder is unable to make monthly payments. The cost of this insurance is sometimes based on the balance that a cardholder is carrying. With a balance of around three thousand dollars, an account holder can expect to pay between twenty and twenty five dollars each month for coverage.

There are several different types of charge account insurance policies including disability insurance, unemployment insurance, property insurance, and life insurance. This type of credit card protection may come in handy if an account holder becomes unemployed or disabled. Property insurance will protect the consumer from loss when an item that was purchased using the charge account is lost, stolen, or broken. Credit life insurance will pay off the entire balance on the account if the cardholder should die. While this kind of insurance might come in handy under certain conditions, there are better insurance bargains out there that are unrelated to charge account activity. Whatever options a charge account holder might take, careful use of this debt is always wise.

Add to: File Insurance Business article Teen Photo Images