Credit Card holder Protections

Federal Law Protects Your Use of Credit Cards.

• 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.

Consumer's Right

Due to the growing importance of your credit report in today's world, it is very important to know and understand your right's pertaining to your credit report.

The Fair Credit Reporting Act was created to promote accuracy, fairness and privacy of information pertaining to the files of a credit bureau. It gives the consumer the following rights:

• You must be informed if information in your file has been used against you. If you are denied credit or employment due to a credit report, the denying party must give you the name, address and phone number of the bureau providing the information.
  
  
• You have the right to see your file upon your request. You may get a free copy, if you have been denied due to the information in your file and you request a copy within 60 days after receiving notice of action.
  
  
• You may also receive a free copy once a year, if you certify you are:
  • Unemployed and planning to seek employment within 60 days
  • On welfare
  • Your report is inaccurate due to fraud
    
    

• Inaccurate information must be corrected or deleted. This is usually done by the bureau within 30 days of the dispute. The bureau is not required to remove accurate data from your file unless it is outdated or cannot be verified. A disputed item can only be reinserted into your file, if the information source verifies its accuracy and completeness. The bureau must notify you of the reinsertion. This notice must include the name address and phone number of the information source.

• You can dispute inaccurate items with the source of the information (the creditor that reported them). The source must report to the bureau that you dispute an item. They may not report the information without including a notice of your dispute. Once you have notified the source of the error, in writing, they may not continue to report the information.

• Outdated information cannot be reported. In most cases a bureau may not report negative information more than seven years old: ten years for Ch-7 bankruptcies.

• Access to your file is limited. A credit bureau may only report information about you to people with a recognized need by the FCRA; such as: creditor's, insurer's, employer's, landlord's or other businesses.

• You can choose to exclude your name from bureau lists for unsolicited credit and insurance offers. If a creditor or insurer uses file information to send you unsolicited offers, the offer must include a toll-free phone number for you to call and remove your name and address from future lists. If you call, you must be kept off the list for 2 years. You may also complete a form with the bureau to be taken off indefinitely.

• You may seek damages from violators. If a bureau, user, or information source violates the FCRA you may sue them in State or Federal court.

Disputing With Credit Bureaus

You can dispute inaccurate information with the bureaus, if you notify a bureau your file contains inaccurate information.

The following are actions the bureaus must take:

• They must investigate the items (usually within 30 days) with the original source, unless the dispute is frivolous.
• The source must review your evidence and their findings with the bureau.
• The bureau is required to give you a written report of the investigation and a copy of your report, if the investigation results in a change.
• If your dispute does not resolve the situation, you may add a brief statement to your file. This statement is normally included on future reports.
• If an item has been deleted or a disputed statement is filed, you may request anybody who recently received a copy of your report be notified.