Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.
The following is a true account of a close friend’s experience after losing a credit card:
How the credit card was lost?
My purse was stolen on 20th January 2008 at an IKEA store in Elizabeth, NJ. I lost my Driver’s License, an HSBC credit card, and all my Debit Cards. I contacted the police, filed a complaint, and drove back home.
How HSBC was informed about the loss of the credit card?
Reaching home, I immediately rang HSBC customer care and reported the loss of my credit card (within 3 hours of my card being stolen). I got to know that my HSBC credit card had already been used at multiple places in NY within this time and that these transactions were in the billing queue. The HSBC customer care executive asked me to fax a letter stating the loss of my credit card along with the police report.
Follow-up from HSBC.
I received an email from HSBC that said, “we wish to inform that under the terms and conditions of card membership (Lost or Stolen Card section of the cardholder agreement), the cardholder is liable for all charges incurred till the time loss of the card is reported to the bank.”
WTF mate? Whatever happened to that 24-hour window during which we could report a card loss and not be charged for any fraudulent transactions.
It seems there is a new policy in place since September, 2007. The new policy reads, “credit card companies will no longer bear any expenses resulting from the transactions (of stolen or lost cards) that have happened before the card is reported as lost.”
The 24-hour window was the single protection for credit card users and has now been taken away by all credit card companies operating in India. In fact, I did not know about this policy until I got to a situation where I was forced to read the credit card rules. Credit card companies have not even updated their customers regarding this policy change.
Were you aware of this rule? Did your credit card company intimate you about this rule?
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.