Protecting Your Rights: Navigating Unauthorized Credit Card Transactions

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At Francis Mailman Soumilas, PC, we understand the frustration and potential financial harm caused by unauthorized credit card transactions. Here’s a comprehensive guide to help consumers protect their rights under key federal laws like the Fair Credit Billing Act (FCBA) and the Truth in Lending Act (TILA).

  • Your Rights Under the Fair Credit Billing Act (FCBA)

Dispute Process:

  • Timely Action: You have 60 days from the date you receive your credit card statement to dispute any unauthorized or incorrect charges. This includes charges not made by you, errors in the amount billed, or non-receipt of goods or services.
  • Written Notice: Send a written notice to your credit card issuer. Include your name, address, account number, and a clear description of the dispute. Specify the transaction in question, the date, and the amount. Use the address listed for billing inquiries on your statement.
  • Immediate Response: The issuer must acknowledge your dispute within 30 days and is required to resolve the issue within two billing cycles, but no more than 90 days. During this period, you won’t owe the disputed amount, nor will interest accrue on it.

If the Issue Persists:

  • Legal Recourse: If the dispute is not resolved satisfactorily, you can sue under the FCBA. You may recover actual damages, up to double the finance charge, and court costs. If you win, there’s also a statutory damage award ranging from $100 to $1,000.

– The Role of the Truth in Lending Act (TILA)

While TILA mainly deals with transparency in credit terms, it complements the FCBA by:

  • Ensuring Proper Disclosure: Card issuers must provide clear, accurate billing information, which can be crucial in disputes over unauthorized transactions.
  • Supporting Consumer Claims: If there’s a failure in disclosure or unauthorized use, TILA can bolster your legal position alongside FCBA.
  • Disputing Inaccurate Balances with Credit Reporting Agencies (FCRA)

Credit Reporting Errors:

  • Unauthorized transactions can lead to inaccurate credit reports if not properly contested.
  • Dispute Process: If your credit report shows an incorrect balance due to unauthorized transactions, you can dispute this with the credit reporting agencies (CRAs) like Equifax, Experian, and TransUnion.
  • Filing a Dispute: Send a dispute letter to each CRA reporting the inaccuracy. Provide your personal information, a copy of your credit report with the errors highlighted, and proof of the unauthorized transaction or resolution from your credit card company.
  • Investigation: The CRAs have 30 days to investigate and must notify you of the results. If the information was incorrect, it must be corrected or removed.

After Dispute:

  • If the CRAs do not correct the mistake, or if you continue to face issues with your credit report, you can:
  • Add a Statement: Add a 100-word statement to your credit file explaining your situation.
  • Legal Action: Consider legal action against the CRA for not fulfilling their responsibilities under the Fair Credit Reporting Act (FCRA), which governs how credit information is collected and used.

– Legal Assistance

At Francis Mailman Soumilas, PC, we focus on consumer protection, particularly in cases involving unauthorized transactions and billing disputes. If you’re facing challenges with your credit card issuer or credit reporting agencies, we’re here to help you navigate these complex legal waters. Contact us at 1-888-735-8600 or click here for a consultation tailored to your situation.