Your Rights Regarding Liability Limits, Billing Errors And Damaged Goods Using Credit Cards

It is amazing to hear the amount of misleading information that circulates around credit cards and the rights of individuals that use them. There is only one set of rules that applies to the rights of individuals so forget what you may have heard through the grapevine. The Federal Fair Credit Billing Act governs the use of credit cards in the United States of America and is in place to protect consumers. Read the following article and know your "real" rights.

What Are Your Liability Limits?

Do you know your liability limits if your credit card is lost or stolen and then is used by someone without your permission. It is a lot more simple than many people think because you do not have to pay more than $50 of those charges. This protection is provided by the Federal "Truth in Lending Act". Regardless of what some con artists may try to tell you, you do not need to buy credit card insurance to cover amounts over $50.

If you discover that your card is lost or stolen, report it immediately to your credit card company. Call the toll-free number listed on your monthly statement. The company will cancel the card so that new purchases cannot be made with it. The company will also send you a new card.

Make a list of your account numbers and the companies phone numbers. Keep the list in a safe place. If your wallet or purse is lost or stolen, youll have all the numbers in one place. Take the list of phone numbers--not the account numbers--with you when you travel, just in case a card is lost or stolen.


What Can Be Done About Billing Errors?

The Federal Fair Credit Billing Act covers billing errors. Examples of billing error are:

Math errors
Payments not credited to your account
A charge by someone who does not have permission to use your credit card
A charge for something you didnt buy
A bill for an amount different from the actual amount you charged
A charge for something that you did not accept when it was delivered
A charge for something that was not delivered according to agreement
If you think your credit card bill has an error, take the following steps:

Write to your credit card company within 60 days after the statement date on the bill with the error. Use the address for billing inquiries listed on the bill. Tell the company (a) your name and account number, (b) that you believe the bill contains an error, and why you believe its wrong, and (c) the date and amount of the error (the disputed amount).

Pay all the other parts of the bill. You do not have to pay the disputed amount or any minimum payments or finance charges that apply to it.

If there is an error, you will not have to pay any finance charges on the disputed amount. Your account must be corrected.

If there is no error, the credit card company must send you an explanation and a statement of the amount you owe. The amount will include any finance charges or other charges that accumulated while you were questioning the bill.

What About Damaged Goods?

The Federal Fair Credit Billing Act allows you to withhold payment on any damaged or poor-quality goods or services purchased with a credit card--even if you have accepted the goods or services--as long as you have made an attempt to solve the problem with the merchant.

The sale must have been for more than $50 and must have taken place in your home state or within 100 miles of your home address. You should notify the credit card company in writing and explain why you are withholding your payment.

You may withhold the payment while the credit card company investigates your claim. If you pay the charges for the goods on your credit card bill before the dispute is resolved, you will lose your right to make a claim.

By: aquarius448

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