Financial Fraud / Consumer Protection
Credit and Debit Cards
Many people pay for purchases of products and services using a credit card or debit card (also called a check card). If you ordered something and didn't receive it, or you were charged for something you didn't order, or you bought something that was completely unsatisfactory and you couldn't get a refund from the merchant (sometimes called a chargeback request), you have rights under federal laws.
Disputing a Credit Card Charge
The federal Fair Credit Billing Act sets up procedures that require credit card issuers to promptly correct billing errors, to withhold payments for defective goods, to resolve disputes between consumers and merchants, and to protect you from credit card fraud. Your rights are summarized on the back of your credit card statements.
The law applies to "open end" credit accounts, such as credit cards. It does not cover installment contracts - loans or extensions of credit you repay on a fixed schedule, such as a car loan or mortgage.
If you have a dispute with a bill, it is important that you notify your credit card company in writing within 60 days of the date on the first credit card statement that contains the error. Putting your dispute in writing is the only way to trigger the legal safeguards provided under the Fair Credit Billing Act. Follow the instructions on your statement for where to send your letter. You can find a sample letter here.
Unauthorized Use of a Credit or Debit Card
The laws regarding credit cards and debit cards are different.
You are only liable for up to $50 of unauthorized use of your credit card.
If your debit card is lost or stolen, and you report it before any unauthorized transactions are made, you will not have to pay for any unauthorized debits. If you report it lost or stolen within two days, your liability is limited to $50. If you report it lost or stolen after two days but before 60 days, you can be liable for up to $500. After 60 days, you can be responsible for the entire amount.
Applicable Federal Law
Other Useful Websites
- Federal Trade Commission
