Page 61 - Book4E

CHAPTER 12
The FTC Says Credit Card Loss Protection
Offers are the “Real Steal”
Let’s say the phone rings. You pick it up, and the individual on the line informs you that you need credit card loss protection insurance. You answer that you thought there was a law that limits your liability to $50 for unauthorized charges. The caller replies claiming that the law has changed and that people are now liable for all unauthorized charges on their account. So, what’s the
real story?
Well, the Federal Trade Commission
(FTC) says don’t fall for the pitch, and
don’t buy the “loss protection” insur-
ance. The fact is, telephone scam artists
are lying to get people to buy worthless
credit card loss protection and insur-
ance programs. Remember, if you didn’t
authorize a charge, don’t pay it. Follow your credit card issuer’s procedures for disputing charges you haven’t authorized. According to the FTC, your liability for unauthorized charges is limited to $50 if reported within 2 business days.
The FTC says worthless credit card loss protection offers are popular among fraudulent promoters who are trying to exploit consumers’ uncertainty. As a result, the agency is cautioning consumers to avoid doing business with callers who claim that:
• you’re liable for more than $50 in unauthorized charges on your credit card account;
The first step to getting the things you want out of life is this: decide what you want.
—Ben Stein
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