What to Do When Your Credit Card Company Violates Your Rights
- Jeff Boe
- Mar 4, 2024
- 3 min read
When a credit card company disregards your rights, it’s essential to know that you’re not alone and that consumer protection laws are designed to safeguard you. Unfair billing practices, fraudulent fees, or wrongful account restrictions are unfortunately common, and you have a legal path to address them. Here’s how to take action when you believe your rights as a consumer have been violated.
Understanding Your Consumer Rights
The first step in protecting yourself is understanding your rights. Several federal laws protect consumers from unfair practices by credit card companies:
The Fair Credit Billing Act (FCBA) – This law allows consumers to dispute billing errors, such as unauthorized charges, charges for items not delivered, or calculation errors.
The Truth in Lending Act (TILA) – TILA ensures credit card companies disclose the terms of loans and credit agreements, protecting consumers from hidden fees and unclear conditions.
The Fair Debt Collection Practices Act (FDCPA) – Though primarily for debt collectors, FDCPA regulations also prevent credit card companies from using abusive collection practices.
Knowing these laws is vital to recognizing violations when they occur.
Common Violations by Credit Card Companies
Credit card companies can engage in various practices that infringe on consumer rights. Here are some common examples to watch for:
Unfair Fees and Charges – Examples include excessive late fees, unauthorized fees, or hidden fees that were not clearly disclosed.
Inaccurate Billing – Billing errors like double charging or including charges for undelivered products fall under this category.
Failure to Address Disputes – When a billing error or dispute is reported, credit card companies are required to investigate and respond promptly. Ignoring disputes is a violation.
Harassment and Abuse – Under FDCPA and other consumer protection laws, credit card companies are prohibited from using aggressive or harassing tactics to collect debt.
If you encounter any of these issues, you have a right to push back and seek resolution.
Steps to Take When Your Rights Are Violated
Taking action can feel overwhelming, but following these steps will empower you and help secure a fair resolution.
Review Your Billing Statements Thoroughly
Review statements carefully, identifying any charges you don’t recognize or didn’t authorize. Compare these against your purchases and keep a record of the discrepancies.
File a Dispute with the Credit Card Company
Contact your credit card company directly, either online or by phone, to formally dispute the charges or issue. Make sure to follow up in writing for added documentation and keep records of all communications.
Seek Support from the Consumer Financial Protection Bureau (CFPB)
If your credit card company isn’t addressing your complaints, consider filing a complaint with the CFPB. The CFPB oversees financial institutions and holds them accountable for unfair practices.
Understand Your Options for Legal Recourse
If your issue remains unresolved, you may have legal options. Some consumer advocacy firms can help consumers file claims against credit card companies to protect their rights and secure fair treatment.
The Importance of Documentation
Documentation is essential in any dispute with a credit card company. Ensure that you:
Save All Statements and Receipts – Keep copies of your billing statements and any receipts for the transactions in question.
Record Communications – Note down the dates, times, and names of representatives you speak with, along with a summary of each conversation.
Track Dispute Responses – Track the response from your credit card company and any written communications you send or receive.
This documentation will support your case if you need to escalate the dispute or pursue legal action.
How to Prevent Future Issues
Preventing consumer rights violations often starts with informed credit card usage and diligent monitoring:
Monitor Your Credit Card Statements Regularly – Set up alerts or reminders to check your statements each month to catch discrepancies early.
Understand Your Credit Card Agreement – Review your credit card’s terms and conditions to understand any fees, interest rates, or other terms that could lead to unexpected charges.
Know the Consumer Protection Laws – Staying informed about consumer protection laws empowers you to recognize when a violation occurs and to act quickly.
If you’re dealing with unfair treatment from your credit card company and need help reclaiming your rights, Boe & Associates is here for you. Reach out to us today at (651) 571-0440 or visit BoeAssociates.com. With a deep understanding of consumer protection rights, we are dedicated to guiding you through the process, providing you with clear, actionable solutions to resolve your dispute and protect your rights. Trust us as your advocate in this journey to reclaiming your financial peace and empowerment.