Know how to Handle Credit Card Problems

When you've been approved for and issued a credit card, you become responsible for the purchases made with it and the payment for those purchases. If there are other authorized users of your account, you're financially responsible for payment of any charges that they make as well. The person who is the originator of the credit application is the one from whom the credit card company will seek to collect payments. The application's originator is also the one whose credit report will reflect balance information and payment history.

There are a number of problems that can arise from having and using charge cards. For instance, if your card is lost or stolen but not reported to the creditor, you could be held liable for unauthorized purchases. It's a good idea to keep a list of all your of credit and charge cards; including the name, address, and telephone number of each company in addition to your account number. If your credit cards are ever lost or stolen, you'll be able to quickly contact the various customer service departments in order to cancel the cards (thereby limiting your liability to $50 per lost card). The credit card companies will then send you a new card with a different account number. The only reason that a new card wouldn't be issued is if you've had previous problems paying the account.

Unauthorized charges are another risk associated with the use of credit cards. Unfortunately, identity theft and credit card fraud are rampant across the country and around the world. It's therefore vital for you to safeguard your credit cards, account numbers, and all of your sensitive personal information. One way to lower this risk is to always keep track of your sales receipts. Most merchant receipts will only print a portion of your account or credit card number, but some may still print the entirety. If your account number falls into the wrong hands from information on a receipt, unauthorized purchases could be the result. The time that it takes to properly safeguard your receipts is minimal compared to the time that can be spent trying to convince the creditor that you didn't make a purchase.

The Fair Credit Billing Act gives you the right to withhold payment to the credit card company for defective merchandise or inferior service, as long as certain conditions are met. If you do withhold payment, you may only withhold the amount of the item in dispute. Other non-disputed purchases that are included in the statement must be paid for as usual. If payment is withheld for a disputed item, the credit card company cannot enter any derogatory information into your credit file, nor can they report the account as delinquent while the charge is being disputed.

No one is perfect, and billing errors do occur. Review your statement each and every month to make sure that there are no unauthorized or incorrect purchases. Credit and charge card billing errors are governed by the Fair Credit Billing Act. An explanation of you billing rights and finance charges is located on the back of your statement. If you discover an error, notify the credit card company of the error in writing as quickly as possible.