So
you've thought about getting a credit card,
but all you've heard about from parents, friends,
co-workers, and the like is that they are just trouble.
Horror stories of over limit charges, finance charges,
late fees, mysterious charges, telemarketers, and
missing bills dance through your head like sugar
plumb fairies in children on Christmas Eve. It’s
important to know, going into your first, or even
your fifth credit card experience, that as a credit
card holder, you have certain rights that go along
with your responsibilities.
Here’s
a rundown of some your credit card rights:
Prompt Credit
for Payment: Your creditor is required
to post payment received within twenty four hours
of receiving it. In order to insure that this system
goes smoothly from your end, make sure that you
make yourself familiar with the payment procedures
for your card.
Refunds of
Credit Balances: If you overpay your credit
card bill, that is the total amount, not a specific
monthly bill, you have a right to receive a credit
on your account. You can also request that the credit
card issuer send you a refund of the over-paid balance.
This only applies if you have completely paid off
the total amount, and have issued additional payment.
It does not apply to an overpayment of a monthly
minimum. If you overpay your balance, your creditor
will automatically credit your account the additional
funds, which you will not be required to re-pay,
as it is your money. However, if you submit written
request for a refund of the balance, they must issue
you a refund within seven days of receipt of your
request.
Resolution
of Errors: If you feel as though there
is an error on your billing statement, you must
submit a written complaint within sixty days of
the error's occurrence. An investigation must follow
within two billing cycles, and no later than ninety
days of receiving the complaint. This is federal
law, and for more information you can contact the
Federal Trade Commission.
Removal of
Unauthorized Charges: If your card is lost
or stolen, report it immediately. Following a lost
or stolen report, the cardholder is not liable for
any charges. If you find fraudulent charges on your
account, you can be held accountable for up to fifty
dollars per card. However, fifty dollars is the
most you will owe for unauthorized charges, even
if the thief uses your card to access an ATM machine.
The best way to avoid any payments on your behalf
for stolen goods is to report a missing or stolen
card as soon as you discover it missing. This way,
the company will cancel the card and you will not
be held responsible for any charges.
It is best, going
into any new experience, to understand your
rights and responsibilities. Request a
written copy of these rights from your credit card
company, and feel free to call them with any questions
or concerns. Make sure that you arm yourself with
information, and you will never be caught unawares.
