It is a consoling fact that the federal law provides protection for credit card users. Hence it is important that these rights be known to every consumer in order to make sure that these rights are respected and upheld by credit card companies. Here are some of the basic facts that protect the credit card holder’s interests:
First and foremost is that the law prohibits the issuance of a credit card to a person who did not request for it, while a credit card company may send you a renewal card or even a substitute card without you asking for it. The credit card company should not in any way send a credit card to someone who has not filled up an application form or has not given his consent.
A credit company must credit to the account holder any payment given on the very moment the payment was received. Applicable exemption to this are cases where delayed credit of payment to an account does not impose any charges, or the creditor’s requirements are not met by the payment made. To avoid sending payments to a wrong credit company, always keep a copy of your card billing in handy to verify the correct credit card issuer anytime for easy reference when making payment. The credit card company address is always stated on your billing statement.
When you pay more than the actual total balance in your credit, you can always ask for a refund from the credit company. It is their duty to issue your refund within seven working days after receipt of your request. Immediately report to the credit card company any error in your billing statements. The credit card user can always file a dispute on the withholding of payment of the billed amount in question while it is under investigation. But the credit user is still obligated to pay for the finance charges and credit balance that are not included in the dispute.
Keep in mind that your complaint should reach the credit card company concerned within 60 days after the bill with error was received. A formal written complaint addressed to the creditor’s billing inquiries department will do the job. The creditor is obliged to acknowledge your complaint within 30 days upon receipt of your letter. The problem should be resolved within a two billing cycle that should not go beyond 90 days.
The Federal Law also provides a ruling that the credit card user is held liable for any unauthorized use of his credit for a maximum of $50 only. It would be best to immediately report any card loss to the hotline number provided by your credit card issuer. If any lost or stolen card is reported prior to the fraudulent use of your credit, you will not be held liable for any unauthorized charges in your account. It is better follow up with a formal letter to the credit card issuer if you made any calls to report a lost card.
To continually enjoy the advantages and convenience of a credit card, you must exercise prudent use and responsible safe keeping. Understand all terms and conditions stipulated in your application form prior to signing. Make sure to keep all receipts of every purchases made to have a basis in reconciling with your monthly bills And most importantly, make effort to protect your credit card from unauthorized use to avoid future problems with your plastic card.
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Every consumer need to feel safety having the card. It’s credit card company’s obligation to provide them with security.
Comment by Jenna — November 28, 2007 @ 12:11 am