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Cardholder
Protections
These are some of
the Federal Laws that protect you. Your credit card policies might have other
rules that are used to help you. For those go to your credit card site.
Prompt Credit for Payment. An issuer must credit your account the day
payment is received. The exceptions are if the payment is not made according to
the creditor's requirements, or the delay in crediting your account won't result
in a charge.
To help avoid finance charges, follow the issuer's mailing instructions.
Payments sent to the wrong address could delay crediting your account for up to
five days. If you misplace your payment envelope, look for the payment address
on your billing statement or call the issuer.
Refunds of Credit Balances. When you make a return or pay more than the
total balance at present, you can keep the credit on your account or write your
issuer for a refund - if it's more than a dollar. A refund must be issued within
seven business days of receiving your request. If a credit stays on your account
for more than six months, the issuer must make a good faith effort to send you a
refund.
Errors on Your Bill. Issuers must follow rules for promptly correcting
billing errors. You'll get a statement outlining these rules when you open an
account and at least once a year. In fact, many issuers include a summary of
these rights on your bills.
If you find a mistake on your bill, you can dispute the charge and withhold
payment on that amount while the charge is being investigated. The error might
be a charge for the wrong amount, for something you didn't accept, or for an
item that wasn't delivered as agreed. Of course, you still have to pay any part
of the bill that's not in dispute, including finance and other charges.
If you decide to dispute a charge:
- Write to the creditor at
the address indicated on your statement for "billing inquiries."
Include your name, address, account number, and a description of the error.
- Send your letter soon. It
must reach the creditor within 60 days after the first bill containing the
error was mailed to you.
The creditor must acknowledge
your complaint in writing within 30 days of receipt, unless the problem has been
resolved. At the latest, the dispute must be resolved within two billing cycles,
but not more than 90 days.
Unauthorized Charges. If your card is used without your permission, you
can be held responsible for up to $50 per card.
If you report the loss before the card is used, you can't be held responsible
for any unauthorized charges. If a thief uses your card before you report it
missing, the most you'll owe for unauthorized charges is $50.
To minimize your liability, report the loss as soon as possible. Some issuers
have 24-hour toll-free telephone numbers to accept emergency information. It's a
good idea to follow-up with a letter to the issuer - include your account
number, the date you noticed your card missing, and the date you reported the
loss.
Disputes about Merchandise or Services. You can dispute charges for
unsatisfactory goods or services. To do so, you must:
- have made the purchase in
your home state or within 100 miles of your current billing address. The
charge must be for more than $50. (These limitations don't apply if the
seller also is the card issuer or if a special business relationship exists
between the seller and the card issuer.) and,
- first make a good faith
effort to resolve the dispute with the seller. No special procedures are
required to do so.
If these conditions don't
apply, you may want to consider filing an action in small claims court.
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