Who is liable if my card is lost/stolen?

MaryJo

So today I got my first ever credit card: an American Express Platinum Cashback and I've set up a direct debit to pay off the full amount every month.

What I'm wondering is: who is liable if I lose my credit card and someone spends on the card before I report the card lost/stolen?

YorkshireBoy

See section 9 (specifically condition 9.3) of your T&Cs/credit agreement...

http://www.americanexpress.com/pes/uk/benefits/pdfs/Platinum_421_QBW_Unexec.pdf

If it's your first card you should read these thoroughly. Post back on anything you don't understand.

MaryJo

Ah, so it's £50 liability if someone uses it after I lose it - providing I am not "grossly negligent". That's fine.

Thanks for your help.

James

If however someone uses your card with your PIN BEFORE you report the loss to AMEX you can be inviting a lot of trouble. Although it's up to card issuers to prove you're negligent, many wriggle.

Another possible scenario is if some manages to copy and fool an ATM or PIN Entgry Device reader that a genuine card is being used then you are in serious trouble.

Therefore unless you want to use your AMEX card to make cashwidrawals at ATM's why not tell AMEX you need require a Chip & Signature Credit Card. No PIN disputes, No liability (Even the first £50 is usually waivered when a signature is disputed).

It's pesonal choice PIN or Sign

chattychappy

Bear in mind, some places simply will not accept a signature card (and I can imagine some credit card companies won't want to issue them except on grounds of disability). Whilst if you have a signature card on the grounds of disability and a place refuses it you might have an argument, if you have one through choice you can't insist that a shop takes it. A number of vending machines (eg ticket machines at train stations) won't work with signature cards.

Personally I don't like the chip'n'pin system - because of the presumption that they if the PIN's been used then it must have been the cardholder, someone in cahoots with the cardholder or as a result of cardholder negligence.

MaryJo

It is a 'Chip & Pin' card. I'm happy enough that no one else will ever know my pin unless they beat it out of me.

In the rare chance that someone manages to pull off some kind of more sophisticated scam, I'm sure I can deal with that when the situation arises.

Thanks for the help, folks.

lisyloo

Bear in mind, some places simply will not accept a signature card

Is this legal? (I thinking of disability discrimination).
It is widespread?

I'm asking becase my MIL who is 82 carries 3 PIN numbers on a scrap of paper in her purse and I have been urging her to get signature cards (or make the numbers the same or get rid og them altogether).

chattychappy

lisyloo wrote: »

Is this legal? (I thinking of disability discrimination).
It is widespread?

Yeah, as I say:

chattychappy wrote: »

Whilst if you have a signature card on the grounds of disability and a place refuses it you might have an argument,

It might not be legal, but it really does depend on a number of circumstances. It wouldn't automatically be discriminatory.

I don't think it's widespread. But, for example, I've encountered it overseas where a signature card is only accepted with a passport. It is the case with ticket machines on the London underground - when the office is closed I don't know what you're supposed to do. Many disabled and elderly people in London would get free travel anyway - but not necessarily those from outside of London.

I think in practice in most "normal" shops, signing is no problem.