Understanding Your Credit Card Rights

The majority of time that you spend trying to learn about your credit cards is going to be spent figuring out the rules that you have to follow in order to make sure that you don’t ever get penalized for the inappropriate use of your card. For example, you may spend time looking into the fees that are associated with going over the limit on your card so that you can avoid that problem on specific cards. While it is certainly important that you know about the rules that you have to follow when using each card, it is equally important that you be aware of the fact that you have rights when it comes to your credit cards. Make sure that you do research into your rights when it comes to unauthorized charges, billing problems and your own inability to make payments to the credit card company.

One of the biggest areas of concern when it comes to credit cards is identity theft. And one of the most important rights that you have is the right not to pay for charges that you didn’t make. If you ever become a victim of identity theft or even just notice a single unauthorized charge on your credit card, you should report it immediately. Be aware that you have the right to pay only a small fee (typically $50) on these types of charges. If the credit card company tries to hold you responsible for paying more than this amount on unauthorized charges, you have legal options designed to keep that money in your pocket. If you didn’t spend it, you don’t have to pay it.

Another common area of credit card use that people don’t realize affords them some rights is the situation of purchasing items on a credit card that are defective or never received. For example, you may order an item online using your credit card and be billed for the purchase but either not receive the item or receive an item that is damaged. Ideally, you would contact the seller and resolve the issue. However, if the issue is not resolved this way then you have the right to go through your credit card company to dispute the charge. Learn more about how to do this here.

Finally, you should know that you have some rights even when problems with credit card companies are somewhat your fault. For example, if you are unable to pay your bills, you still retain some rights. Of course, you’re still responsible for the debt. But you have rights in regards to how credit card companies and debt collection agencies can treat you or deal with you regarding the issue. These rights are outlined in the Fair Debt Collection Practices Act, a document that you should read carefully if you ever find yourself in the position of having outstanding debt that you can’t pay off. As a credit card holder, you definitely have a lot of responsibilities to worry about but you should also be aware of the fact that you retain some important rights, too.