As you apply for and are provided with credit, your signature on the credit documents functions as your agreement with the terms suggested by the issuing financial organization. Although you may think that the issuer has the right of voice in everything related to using the credit, it is not completely correct. Of course, you have particular rights, majority of which are guaranteed by the Fair Credit Billing Act. There is one significant thing you should do in order to be able to take advantage of these rights and that is making sure that you take all necessary steps in the order and time frame fixed.
The most important credit problem is billing disputes. These are disputes which happen when merchants demand money for objects not received or received defective. As the Fair Credit Billing Act states, you have a right to dispute in such cases following the procedure of two steps. Step One: within 60 days of the date you got the first notification of such item, you have to write to the issuer of your credit card, stating your name as it is on your cardholder account, account number, information on the problematic item and what you want to be done.
Step Two: before sending the letter, make sure to put your signature on it and to make a copy to have it with you; send it with the type of mail that offers proof of delivery. Within 30 days the issuer will contact you and start investigating the matter. While the investigation is in process, you do not have to pay for that item. If the dispute is finished in your favor, you are free from any responsibilities connected with the item. If not, you will have to make the necessary payments according to cardholder agreement.
Unauthorized charges can be called another significant problem with credit cards. Nonetheless, your responsibility for verified unauthorized charges is restricted to $50 - not the whole sum. Unauthorized charges can rapidly reach the hundreds and even thousands of dollars, that's why $50 is a comparatively minute price to pay if you happen to be a victim of identity theft.
Those who pay with credit cards are considered debtors. If you cannot pay off your credit debt, you are sure to be contacted by a debt collector. Formerly, debt collectors made use of various threatening and frightening methods to collect debt. Luckily, now the Fair Debt Collection Practices Act banned use of such tactics and defined when and in what way debt collectors may contact debtors. For instance, debt collectors have no right to say you will be arrested or your salary will be cut. However, you still have to repay your debt and the Act only guarantees you fair treatment.
For more complicated issues concerning your credit cards rights for example in cases of declaring bankruptcy or divorce, you need to consult a legal representative.
