FTC Consumer Alert
Credit Card Loss Protection Offers: They’re the Real Steal
“I got a call from a woman who said I need credit card loss protection insurance. I thought there was a law that limited my liability to $50 for unauthorized charges. But she said the law had changed and that now, people are liable for all unauthorized charges on their account. Is that true?”
Don’t buy the pitch – and don’t buy the “loss protection” insurance. Telephone scam artists are lying to get people to buy worthless credit card loss protection and insurance programs. 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 Federal Trade Commission, your liability for unauthorized charges is limited to $50.