Lending Act Protecting Credit Card Fraud Victims

Exercise Your Rights: Victims of Credit Card Fraud Need to Know That the Truth in Lending Act Has Your Back.

With today’s technology, keeping your credit and debit card accounts safe is harsh. If you have been a victim of credit card fraud, you should be aware of your rights as a consumer. Many laws protect consumers from fraudulent activities; today, we will discuss the Truth in Lending Act. 

Truth in Lending Act protects you in fraudulent situations. You are liable for only $50.00 in unauthorized credit card charges. However, you must write a letter to the furnisher within 60 days of the first bill containing the fraudulent charge.

If someone uses your credit card number fraudulently but does not use the physical card, you have no personal liability for the fraudulent charges.

Fraudulent charges on debit or ATM cards differ from credit card fraud. Regarding unauthorized charges, debit or ATM cards are not as simple as credit cards. The amount you are liable for depends on how quickly you report the loss.  Always double-check all charges and vendors that charge your cards. Act quickly. If you notice any suspicious activity in your bank account or credit card statements, report it immediately.  Under the Federal Privacy Act of 1974, furnishing your social security number is voluntary, so don’t be bullied by aggressive sales tactics.

What To Do If Credit Card Theft Happens to You

Federal law caps your liability at $50 if someone steals your credit card, regardless of the unauthorized charges. Additionally, federal law protects you from liability for any unauthorized charges if you report the theft of your physical card or credit card account number before any charges occur.

It’s essential to thoroughly review the terms and conditions outlined in your cardholder agreement. As a responsible cardholder, promptly inform the issuer if your credit card is lost or stolen. This quick response can help prevent additional unauthorized expenditures.

This advance notice will provide the issuer with the opportunity to assist you in the following ways:

• Confirm whether and where fraudulent activity has taken place.
• Eliminate unauthorized charges from your credit card account.
• Terminate your account to prevent any future fraudulent charges.
• Provide you with a new card and account number.

The Fair Credit Billing Act is a powerful tool for consumers. It allows you to dispute a charge with your card issuer within 60 days of receiving your credit card bill. The charge must exceed $50 to qualify for dispute and may be unauthorized, have an incorrect date or amount, or contain calculation errors. You can also dispute charges for undelivered goods or services.

Once a complaint is received, the issuer must acknowledge it within 30 days and complete the investigation within two billing cycles. During this period, the issuer cannot attempt to collect the payment, charge interest on it, or report it as late to credit bureaus. However, these restrictions only apply to the disputed payment; other charges made in the same billing cycle may still accrue interest and be reported as late if unpaid.

Conclusion

If your bank refuses to cover your losses in the event of fraudulent activity, it may be breaking the law. Additionally, it may break the law if it submits the fraudulent account for collection against you or reports it negatively to the Credit Reporting Agencies.