Seriously, people, check your statements!

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September 2nd, 2009 - Posted by Caitlin

As you probably know by now, federal law limits your liability to $50 for unauthorized credit card charges. But that limit only applies if you notify your bank within 60 days. That's why it's absolutely crucial to check your bank and credit card statements regularly.

One Colorado retiree learned this lesson the hard way. Don Godding never looked at his statements. He simply made his minimum payments of $200 every month, without ever knowing his actual balance. So when an identity thief charged almost $11,000 to Godding's credit card within two months, Godding had no idea until it was too late. Since Goddard continued paying and never contested the charges, Bank of America assumed that they were legitimate, and when the card was overdrawn, Bank of America demanded $2,500 immediately. Since Goddard didn't have $2,500, he decided to transfer his entire balance to a Chase account. By doing so, he assumed complete liability for the debt, and now he's been forced to take a part time job to pay his $500 minimum each month.

There are protections for consumers, but you have to take on some degree of personal responsibility in order to benefit from those protections. Godding blames himself, and says, "Pay attention. Observe. Watch what you're doing." Take his advice, and check your statements often. For additional protection, you may want to consider credit report monitoring or identity theft protection.