Avoiding credit card problems
Most of us value credit cards for the convenience they offer. But when a billing error occurs, getting it corrected is, at minimum, a hassle. To lower the risk of errors on your account, keep the following guidelines in mind. Your continued use, convenience, personal liability and financial security hinge on it.
Always keep and compare your credit card receipts with the matching monthly credit card billing statement. This ensures accurate entry billing. Errors can be caught immediately before they become buried within computerized bureaucracy.
Always make sure that the salesclerk or restaurant server returns your credit card and not someone else's. This is especially true when traveling. A lot of cards look similar, and a simple mistake like switching cards can cause major inconveniences.
Always ask for the credit-slip carbons. Tear them up yourself; never assume the clerk will do it, even if she offers to do so. Credit card fraud is very common. Don't encourage it.
If a consumer has found her credit card purchase of merchandise or service to be substandard, she may hold back payment. This is granted under the "Fair Credit Billing Act."
The following four conditions must be met:
1. The charge must be in excess of $50.
2. The cardholder must attempt to resolve the dispute directly with the merchant.
3. The cardholder must make the credit institution aware of the dispute in writing. (It is highly suggested that notification be sent by certified mail, with return of a signed receipt requested.)
4. The merchant must be located within 100 miles of the cardholder's residence. If you find an error on your monthly billing statement (either for an item you purchased or failure to credit a payment you made), you must notify the card-issuer in writing within 60 days of the date the statement was mailed to you. Send your letter of notice via certified mail with return of receipt requested. The credit-issuing institution has 30 days to acknowledge the dispute with you.
At this point, the creditor can do one of two things:
1) They can agree with you, making appropriate changes and notifying you in writing; or,
2) they can send you a written explanation of why you are wrong and they are right.
If they find you incorrect, they must be able to clearly document any claims made.
During this dispute, the creditor cannot refer you to pay the amount under collection action. They also cannot report you as delinquent to any credit bureau or revoke your credit card. This dispute must not take any longer to settle than two billing cycles (90 days) in total.
Whenever you receive correspondence regarding the dispute, follow it up with a phone call. Record, in writing, the person's name and department, and the time of day. Then make notes of the overall conversation.
If a cardholder requests an additional credit card for a spouse or other party, the cardholder is entirely responsible for complete payment on all card uses. If the cardholder wishes to rescind the extra card's use, she must notify the card-issuer and simultaneously take back the card from the other party. Until the card is taken away, the cardholder is still responsible for any charges occurring because of that card.
tags: credit card, problem
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