Credit Cards

Phone stolen with fake money (contract). Can i use credit card insurance?

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  • Feb 2nd, 2018 10:07 am
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[OP]
Sr. Member
Apr 23, 2014
697 posts
323 upvotes
Toronto, ON

Phone stolen with fake money (contract). Can i use credit card insurance?

Hello

Dad (hes old, soo..) sold his phone for few hundreds and was given fake money in american.

The phone was $0 on contract and was bought less than 2 months ago. Actual value is $1000. So wondering if he goes through insurance company, will he get $1000 or $0?

Second thing is, can he still block the phone on canadian network? I forgot to ask if he gave the person receipt.

Another thing is, to get insurance money, I read the credit card company needs police report. Should he just say the phone is lost or explain the whole story that he got the fake money for it? In which case the credit card company may reject the claim? The person used unknown number so he can't be traced.
8 replies
Deal Expert
Aug 22, 2011
35645 posts
21730 upvotes
Center of Universe
Go through the process...don't lie and say it was lost.
[OP]
Sr. Member
Apr 23, 2014
697 posts
323 upvotes
Toronto, ON
vkizzle wrote: Go through the process...don't lie and say it was lost.
But can the credit card company refuse since it was more along the line of being scammed?

I'm not with him so I can't guide him through the process. It's already been couple days so the guy must have sold it for dirt cheap. It may be more easy for him to say I lost it and I don't know where it is than to describe how the guy looked, what car he drove, all that information only in the end to be told its his fault for not knowing if the note was legit or not.
Deal Expert
Aug 22, 2011
35645 posts
21730 upvotes
Center of Universe
vanclty wrote: But can the credit card company refuse since it was more along the line of being scammed?

I'm not with him so I can't guide him through the process. It's already been couple days so the guy must have sold it for dirt cheap. It may be more easy for him to say I lost it and I don't know where it is than to describe how the guy looked, what car he drove, all that information only in the end to be told its his fault for not knowing if the note was legit or not.
A victim a fraud would be in line with theft.
File a police report and go from there.
Deal Fanatic
User avatar
Aug 24, 2016
8302 posts
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The Prairies
vanclty wrote: Hello

Dad (hes old, soo..) sold his phone for few hundreds and was given fake money in american.

The phone was $0 on contract and was bought less than 2 months ago. Actual value is $1000. So wondering if he goes through insurance company, will he get $1000 or $0?

Second thing is, can he still block the phone on canadian network? I forgot to ask if he gave the person receipt.

Another thing is, to get insurance money, I read the credit card company needs police report. Should he just say the phone is lost or explain the whole story that he got the fake money for it? In which case the credit card company may reject the claim? The person used unknown number so he can't be traced.
There was no amount paid on the credit card for the phone, so how do you expect to claim loss for the phone that wasn’t charged to the card?
[OP]
Sr. Member
Apr 23, 2014
697 posts
323 upvotes
Toronto, ON
coolintheshade wrote: There was no amount paid on the credit card for the phone, so how do you expect to claim loss for the phone that wasn’t charged to the card?
That is the question. The phone is valued at $1000 but paid $0 upfront, but there was fees associated.
Deal Fanatic
User avatar
Aug 24, 2016
8302 posts
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The Prairies
vanclty wrote: That is the question. The phone is valued at $1000 but paid $0 upfront, but there was fees associated.
The entire cost of the phone has to be charged to the card to qualify.
Deal Guru
User avatar
Jan 9, 2011
11055 posts
13548 upvotes
Vancouver
Tell Dad to check his home insurance. Many policies cover you for counterfeit currency you accept in good faith. Mine covers me up to $5,000 in CDN or US dollars, no deductible.

I don't believe you have any sort of claim at all on the credit card. You dad willingly sold the phone, it wasn't lost or stolen from him against his will.
Deal Guru
User avatar
Mar 23, 2008
12331 posts
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Edmonton
coolintheshade wrote: The entire cost of the phone has to be charged to the card to qualify.
This. When I went TV shopping on Boxing Day, I called my CC company's insurance line to confirm. You're only covered if you charged the full price on the card. If I used a gift card or a pre-paid Visa card in conjunction with my main card, I'd be out of luck as far as extended warranty goes. He can call the insurance company to confirm; different companies and cards might have different policies. But if your dad is unsophisticated enough to get scammed like this (no offense intended), I suspect he'll have trouble putting together a credible story that would get the insurance company to pay out.

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