April 6, 2006

Ask A Lawyer
Real Life Answers to Your Legal Hassles

My debit card was stolen and the thief overdrew my bank account. I contacted the police but they said there was nothing they could do. I’m afraid it will ruin my credit and destroy my ability to rent an apartment. How can I clear it up?

According to Ryan Russell at the law firm of Foster Pepper PLLC, even though this type of identity theft is illegal, the police often do not have the manpower to respond to every claim, so you will likely have to attempt to resolve the matter yourself. This is a two-part article. Here, we will outline what you should do immediately to protect yourself and your credit. In the May 3 issue, we will discuss how to deal with the ongoing problems created by identity theft.

Typically, under state and federal law, you will not have to pay back the entire amount of money overdrawn from your account. However, you need to take immediate action to avoid liability for the charges and to protect your credit history. Throughout the process, keep accurate, detailed records, including names, dates, and telephone numbers of everyone with whom you speak.

Take the following five steps immediately if your debit card is stolen: first, call your bank, close your account, and speak with its fraud unit. Second, tell the bank that someone stole your card and ask the bank to note the account, “Closed at consumer’s request.” This will prevent credit-reporting agencies from assuming that it was your fault the card was lost.

Third, ask the bank for the names and phone numbers of every place where the card was used. Contact these places by phone and in writing as soon as possible. They may have a form for you to fill out, and many companies will accept the Federal Trade Commission’s form found on-line.

Fourth, ask the bank for a new account number, a new card, and a new password. When choosing a password do not use an easily guessable password, like the last four digits of your social security number, an old often-used password, or your date of birth.

Fifth, if you have set up automatic bill payments with anyone, remember to tell them that you have changed the account.

You should also contact the police immediately to create official documentation that is to help protect your credit. Be sure to attach your police report to each form you send to companies where your card was fraudulently used.

Finally, file a complaint with the Federal Trade Commission, which maintains a database of identity theft cases that law enforcement agencies use for investigations of this type of fraud.

For more information, contact the state Attorney General’s Consumer Resource hotline at 1-800-551-4636 or the FTC’s Identity Theft Hotline at 1-877-438-4338 or www.consumer.gov/idtheft/. n