Identity theft often becomes more common around the holidays and begs the question, “Do I have to pay for fraudulent charges made by someone who has stolen my identity?”

If you act in time, your liability is minimal; however, the steps you need to take are different depending on whether the fraud occurred on a credit card or an ATM card.

The federal Truth in Lending Act established laws that provide help for victims of credit card fraud. However, there is a time limit to receive identity theft assistance. Typically, the limit of liability for unauthorized credit card charges is $50 per card, but you must take action within 60 days. If you have identity theft claims for fraudulent charges on your credit card account you must use the following procedures.

1) Put it in writing. Review your statements to find a mailing address for “billing inquiries.” Write a concise, clear letter to each creditor and include your name, address, account number and other details of the fraud.

2) Beat the 60-day deadline. You must mail your notification letter so that it reaches the creditor within 60 days of the date of the bill containing the fraudulent charge was mailed to you. Even if an identity thief changes the address on your account so you never receive the statement, it does not excuse you from the notification requirement.

3) Get proof of receipt. Send your letter using certified mail with a return receipt so you have confirmation the creditor receiving the letter. Make copies of sales receipts or other documents that support your position and enclose them.

The Federal Electronic Fund Transfer Act also generally limits liability to $50 for loss due to fraudulent transactions made using electronic funds transfers and/or ATM cards. Like credit card fraud, your report of unauthorized transactions must be in writing and must be delivered to your bank within 60 days.

Consumer protection against liability differs dramatically for ATM transactions involving a lost or stolen card. Specifically, if you report the loss or theft of your ATM or debit card before any unauthorized charges are made, you will not be responsible for unauthorized withdrawals. If you report the ATM card stolen within two business days and fraudulent charges are made, your liability is limited to $50. If you report your card stolen after two days, but within 60 days of the unauthorized withdrawals, you could lose up to $500 of the unauthorized amount. If you wait to report the card lost or stolen beyond 60 days, you may be liable for all unauthorized withdrawals.