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    Your Credit Card Rights - . - Your Credit Rating. - .: The Fair Credit Billing Act Establishes Procedures For

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    Flaviub23
    The document outlines consumers' rights under the Fair Credit Billing Act regarding disputing charges on credit card bills. It explains that consumers have 60 days to dispute a charge in writing with the creditor by describing the error. The creditor then has 30 days to acknowledge the dispute and up to 90 days to investigate before correcting the bill or explaining why it is correct. Consumers do not have to pay disputed amounts or related interest during an investigation. The penalties for creditors that do not follow these dispute procedures are also described.

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    Your Credit Card Rights - . - Your Credit Rating. - .: The Fair Credit Billing Act Establishes Procedures For

    Uploaded by

    Flaviub23
    152 views2 pages
    The document outlines consumers' rights under the Fair Credit Billing Act regarding disputing charges on credit card bills. It explains that consumers have 60 days to dispute a charge in writing with the creditor by describing the error. The creditor then has 30 days to acknowledge the dispute and up to 90 days to investigate before correcting the bill or explaining why it is correct. Consumers do not have to pay disputed amounts or related interest during an investigation. The penalties for creditors that do not follow these dispute procedures are also described.

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    Billing

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    The document outlines consumers' rights under the Fair Credit Billing Act regarding disputing charges on credit card bills. It explains that consumers have 60 days to dispute a charge in writing with the creditor by describing the error. The creditor then has 30 days to acknowledge the dispute and up to 90 days to investigate before correcting the bill or explaining why it is correct. Consumers do not have to pay disputed amounts or related interest during an investigation. The penalties for creditors that do not follow these dispute procedures are also described.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    152 views2 pages

    Your Credit Card Rights - . - Your Credit Rating. - .: The Fair Credit Billing Act Establishes Procedures For

    Uploaded by

    Flaviub23
    The document outlines consumers' rights under the Fair Credit Billing Act regarding disputing charges on credit card bills. It explains that consumers have 60 days to dispute a charge in writing with the creditor by describing the error. The creditor then has 30 days to acknowledge the dispute and up to 90 days to investigate before correcting the bill or explaining why it is correct. Consumers do not have to pay disputed amounts or related interest during an investigation. The penalties for creditors that do not follow these dispute procedures are also described.

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    YOUR CREDIT CARD RIGHTS . . .

    If you've ever been hassled by the credit department's


    computer, you'll be pleased to learn about the rights that you
    have when you think that your bill is wrong.
    The Fair Credit Billing Act establishes procedures for
    resolving billing errors on your credit card and is an addition
    to the Truth in Lending law. This brochure explains how to
    resolve a billing dispute in a way that protects your credit
    rating.
    BILLING ERRORS. . .
    You may challenge either the purchase or the price of
    an item that appears on your billing statement. The law
    defines an error as any charge:
    \ Not made either by you or someone authorized to use
    your account.

    \ Poorly identified, for a different amount or on a different
    date than is shown on the statement.

    \ Made for something that you did not accept on delivery
    or that was not delivered according to agreement.
    Billing errors also include:
    \ Failure to credit your account properly.
    \ Computational or accounting mistakes.
    \ Failure to mail your statement to your current address,
    provided you notified the creditor of your address
    change, in writing, at least 20 days before the billing
    period ended.
    \ A request for additional information or an explanation
    about a questionable itemis also considered a billing
    error.
    WHEN AN ERROR OCCURS. . .
    If you think your bill is wrong or want more information about
    it, follow these steps:
    1. Notify the creditor in writing within 60 days after the bill
    was mailed. Be sure to include:
    4 Your name and address

    4 A statement that you believe the bill contains an
    error and an explanation of why you believe there is
    an error.

    4 The suspected amount of the error.
    2. While you are waiting for an answer, you do not have to
    pay the amount in question (the "disputed amount") or any
    minimumpayments or finance charges that apply to it. But
    you are still obligated to pay all parts of the bill that are not in
    dispute.
    3. The creditor must acknowledge your letter within 30 days,
    unless your bill is corrected before then. Within two billing
    periods, but in no case more than 90 days, your account
    must either be corrected or you must be told why the creditor
    believes the bill is correct.
    4. If the creditor made a mistake, you do not pay any finance
    charges on the disputed amount. Your account must be
    corrected for either the full amount in dispute, or for the part
    of the amount that was in error.
    If no error is found, the creditor must also notify you promptly
    of when payment is due and how much you owe. In this case,
    the amount may include any finance charges accumulated
    and any minimum payments you missed while you were
    questioning your bill.
    DEFECTIVE MERCHANDISE OR SERVICES. . .
    The law provides that you may withhold payment of any
    balance due on defective merchandise or services purchased
    with a credit card, provided you have made a good faith effort
    to return the goods or resolve the problemwith the merchant
    fromwhomyou made the purchase.
    If the store that honored the credit card was not also the
    issuer of the card, two limitations apply to this right: The
    original amount of the purchase must have exceeded $50
    and the sale must have taken place in your state or within
    100 miles of your current address.
    In the case of defective merchandise or services, a legal
    action may result to determine the validity of your claim.
    YOUR CREDIT RATING. . .
    Once you have written about a possible error, the creditor
    may not report you as delinquent to other creditors or credit
    bureaus or threaten to damage your credit rating because
    you are not paying the disputed amount. Until your letter is
    answered, the creditor also may not take any collection
    action on the disputed amount, or restrict your account
    because of the dispute. A creditor can, however, apply the
    disputed amount against your credit limit.
    But, after the bill has been explained, and if you still disagree
    in writing within 10 days (or within the time you usually have
    to pay your bill before the creditor may impose additional
    finance or other charges) and do not pay, the creditor can
    report you as delinquent on your account and begin collection
    proceedings. If this is done, the creditor must also report that
    you challenge your bill, and you must be provided in writing
    the name and address of each person to whomyour credit
    information has been given. When the matter is settled, the
    creditor must report the outcome to each person who
    received information about you.
    PENALTIES AND OTHER PROVISIONS. . .
    The law provides that any creditor who fails to comply with
    the rules applying to billing errors and credit ratings
    automatically forfeits the amount of the itemin question and
    any finance charges on it, up to a total of $50, even if no error
    occurred. You as an individual may also sue for actual
    damages plus twice the amount of any finance charges, in
    any case not less than $100 or more than $1,000. Class
    action suites are also permitted.
    The law also includes requirements for prompt reporting and
    crediting of payments or returns of merchandise. In addition,
    it provides that credit card issuers may not prohibit stores
    which honor their cards fromoffering discounts to customers
    who pay in cash or by check.
    - - - - - - - - - -
    The Indiana Department of Financial Institutions, Division of
    Consumer Credit has many other credit related brochures
    available, such as:
    Answers to Credit Problems
    Applying for Credit
    At Home Shopping Rights
    Bankruptcy Facts
    Buried in Debt
    Car Financing Scams
    Charge Card Fraud
    Choosing A Credit Card
    Co-Signing
    Credit and Divorce
    Credit and Older Consumers
    Deep in Debt?
    Equal Credit Opportunity
    Fair Credit Reporting
    Fair Debt Collection
    Gold Cards
    Hang up on Fraud
    High Rate Mortgages
    Home Equity Credit Lines
    How to Avoid Bankruptcy
    Indiana Uniform Consumer Credit Code
    Look Before you Lease
    Mortgage Loans
    Repossession
    Reverse Mortgage Loans
    Rule of 78s What is it?
    Scoring for Credit
    Shopping for Credit
    Using Credit Cards
    Variable Rate Credit
    What is a Budget?
    What is the DFI?
    Call our toll-free number or write to the address on the cover for
    a copy of any of the brochures listed or for further consumer
    credit information. You can also access information at our web
    site on the Internet: http://www.dfi.state.in.us, then click on
    Consumer Credit.
    F A I R F A I R
    C R E D I T C R E D I T
    B I L L I N G B I L L I N G
    DEPARTMENT OF FINANCIAL INSTITUTIONS
    Consumer Credit Division
    402 West Washington Street, Room W066
    Indianapolis, Indiana 46204
    317-232-3955
    1-800-382-4880
    Web Site http://www.dfi.state.in.us

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