MoneyDo: Review your auto debits and recurring charges.

In a modern day when we can get all our services at a click of a button.  When that button is clicked it often involves creating an auto debit attached to our bank account.  It is also possible someone else clicked that button and created a fraudulent charge.  In this week’s MoneyDo we recommend you review your credit card and bank statements to be sure that all your recurring charges are valid.

According to the Fair Credit Billing Act and Electronic Fund Transfer Act it is important you report a lost or stolen card as soon as possible as that may dictate how liable you are for any fraudulent changes.

For debit cards, if you notify the bank before any unauthorized charges were made you are not responsible for any of the future charges.  However if you wait two days from the time you learn of the loss you may be liable up to $50, and if you wait more than two days but less than 60 days from when your statement was sent you may be liable for up to $500.   If you wait more than 60 days you may be liable for all the money taken from your accounts—Yikes!  This stresses the importance of reviewing your charges frequently to be sure they are valid.

Credit cards tend to have greater consumer protection, if your card is lost or stolen you may be liable for charges up to $50, but if you report the loss before it was used you are not liable for any of the charges on your card.  Also, if just your number is stolen and not your card you are not liable for any of the charges.

Reviewing your auto debits and charges will also help manage your budget.  Creating a budget will help set goals, manage expenses, and help fund an emergency fund. It also provides a base for comparing what is actually charged on your account to your budget and help ensure that you reach your financial goals.