Consumer Rights and Protections

Things can go wrong even when you use your credit card responsibly. It can be lost or stolen, or you can buy something that’s a total lemon. Fortunately, federal laws limit your liability. That’s the amount you’re responsible to pay for charges you didn’t make.

For example, if you lose your card or if it’s stolen, and someone uses it without your permission, the most you’ll owe is $50. But you have to report the card missing within two days of realizing it’s gone by calling the customer service number on your statement. If the charges show up on your bill, you have 60 days to report the problem. If you miss the deadlines, you could owe more.

If something you buy with your credit card is defective, you have a legal right to refuse to pay for it. Check with your card issuer about what to do if you get stuck this way.

There are also laws to protect you against unfair fees and lending practices. As a result:

• Grace periods are longer
• Penalty fees are capped
• Introductory interest rates must last at least six months

 

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