Credit Card Liability

Where does credit card liability lie?
 
    
Is it in the hands of the issuer or the cardholder? Credit card liability is actually a big issue between the two since the line of accountability and responsibility for a credit card is not clearly drawn. Here’s one perspecitive. As a consumer, credit card liability is mainly on the cardholder since you’re the one holding and using your credit card every day. Having a credit card, in itself, is already a big responsibility that’s why only those of legal age and those who show the capability of sustaining a credit card account are qualified to get a credit card.

When does credit card liability lie on the consumer? Let’s say you lost your credit card or it was stolen from you. It is your responsibility to notify the bank or credit card company of this event within a reasonable amount time. This period is usually around 30 days after the card was stolen. This will lift the credit card liability from you. This way, all charges made on the credit card prior to notification will only cost you $50 or, sometimes, nothing. If you fail to do this within the set period, you’ll be accountable for all the charges incurred by your card.

Consumer credit card liability also includes payments that are done properly and punctually. If you cannot meet your due date, you should notify your card issuer immediately. These companies usually extend due dates for clients if their payment habits are excellent. If you cannot prevent missing a monthly payment, ask if they can waive the late payment fee.

Credit card liability on billing errors is shared between you and your credit card company. The first step should always come from you because unless you raise the issue, the credit card company will not bother to check whether your account has correct entries or not. If you did not receive the goods you ordered, received the wrong one, or returned them to the merchant for poor quality, you should raise a dispute immediately. This is usually done in writing and instructions for the content are normally given by the credit card company. If you manage to send your dispute letter immediately after you receive you disputed bill, the credit card liability is transferred to the credit card company. They are now required to investigate the issue and to get back to you within 90 days of receiving your letter. You are not liable for items that are still in dispute. You have the right to stop or withhold payment for these items especially if your complaint is legitimate.

For the most part, a credit card is the responsibility of the consumer. To avoid unnecessary fees and penalties, know your rights and responsibilities at the same time. You should not give your card issuer any reason to collect more fees from you.


  

Source: Credit Cards For People With Bad Credit Rating


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