Federal law protects consumers when they use credit cards. Protections
include the following items:
Prompt Credit for Payments:
A card issuer must credit your account on the day the issuer
receives your payment, unless the payment is not made according to the
creditor's requirements or the delay in crediting your account does not result
in a charge.
When you return merchandise or pay more than you owe, you have the
option of keeping the credit balance on your account or requesting a refund. To
obtain a refund, write the card issuer. The card issuer must send you the
refund within seven business days of receiving your request. Also if a credit balance
remains on your account for more than six months, the card issuer must make a
good faith effort to refund the credit balance.
Errors on Your Bill:
There are specific rules that the card issuer must follow for
promptly correcting billing errors. The issuer must furnish you a statement
describing the rules when you open a credit card account and at least once a
year after that. Many issuers print your rights on their monthly billing
statements. You must notify the issuer in writing at the address specified for
billing errors within 60 days after the first bill containing the error was
mailed to you. The issuer must look into the problem and either corrects the
error or explain to you why the bill is correct not later than 90 days after
the issuer receives your billing error notice. During that period you do not
have to pay the disputed amount or interest on that amount.
Unauthorized Charges:
If your credit card is used without your authorization, you can be
held liable for up to $50 per card. If you report the loss before the card is
used, federal law says the card issuer cannot hold you responsible for any
unauthorized charges. If you have a lost or stolen credit card, report the loss
as soon as possible. Most issuers have a toll-free number in service 24 hours. You
should follow-up your phone call with a letter.
Disputes About Merchandise or Services.
If you have a problem with merchandise or services that you
charged to a credit card and have made a good faith effort to work out the
problem with the seller, you have the right to withhold from the card issuer
payment for the merchandise or services. If the card you used is a bank card another
card not issued by the seller of the defective merchandise, you can withhold
payment only if the purchase exceeded $50 and occurred in your home state or
within 100 miles of your billing address.
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