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Can Identity Theft Entail Financial Hazards Like Debt?
If you are a victim of identity theft and feeling worried that someone would use your information to accumulate debt in your name then you are right, you have plenty of reasons to be worried. These days, identity theft is a widespread problem. Identity theft generally takes place when someone accesses your personal identifying information, like your name, social security number, or credit card number, without your permission to commit fraud or other crimes. According to the FTC (Federal Trade Commission) approximately 9 million Americans have their identities stolen each year. In certain situations individuals, whose credit card or bank account information is stolen are held liable for the accumulated debt and in other cases the loss is suffered by the banks or the lending institutions only. The thought of having to pay for someone else's debt is scary indeed, but thanks to certain state laws that there are ways to get rid of this impending danger quite easily. State laws are there to limit your personal liability for identity theft losses to as little as $50. Read on to attain debt relief from unwanted financial hazard of identity theft.
Credit Card
Fraudulent credit card charges are the most common type of identity theft. If this happens to you, don’t worry, the state laws will see to it and you'll be exempt from paying the maximum credit card charges. If you inform your credit card company about the fraudulent charges within 60 days, it will be reversed and removed from your account immediately. The maximum amount that you will be paying in most cases is $50. However, if you take too long to unravel the mystery of the identity theft and wait longer than 60 days to tell the credit card company about the it, you might have to pay for all the charges.
New Accounts
What happens when someone opens a new account in your name? Suppose, someone hacks your passwords and gets in your mailbox and use a credit card offer to open a new account. This thief could use the credit card to amass thousands of dollars of charges in your name. Under this scenario, as per the state law you won’t be held liable to pay off the charges. All you have to do is as soon as you discover the identity theft; you have to report them to the credit card company.
Debit Cards
If someone gets hold of your debit card that can be used both as a debit card and credit card and start making fraudulent charges, you have to act promptly at this time, because you have restricted time to limit your personal liability. If you notify about the loss to the bank within two days, you will remain responsible for maximum of $50, whereas if you wait beyond two days but fewer than 60 days, you will be held responsible for up to $500 of charges. However, if you are late for more than 60 days, you will have unlimited liability for the phony charges.
Checks
If a trespasser passes fraudulent checks on your account, maximum states won’t require you to pay for the debts accumulated. Initially, you might be charged for the checks, but if you report the incident to your bank immediately it will reverse the charges. This is because all checks require a few days to clear both banks, and therefore if you take corrective action within required time frame, the bank won’t process the fraudulent check further. Keep an eye on your on-line bank statement, so that you can avoid this unpleasant situations in every possible ways.
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