Credit Card Protection Rights

Credit Card Basics

The Federal Reserve Board enforces several credit card rules passed in 2010. Under these rules, credit card companies cannot charge fees for inactive accounts. All billing statements must include the interest rate and disclose how long it will take to get out of debt if the consumer only makes the minimum monthly payment. Also, credit card companies cannot increase interest rates just because a customer made a payment late to another creditor. If a credit card company increases the customer's interest rate, they must review the case for an interest rate decrease at least once every six months.

Consumers with account problems should make their complaints in writing to benefit from the Fair Credit Billing Act. This set of federal laws compels credit card companies to promptly investigate any billing disputes that arise due to shoddy or undelivered goods. During the investigation period, the customer is not liable for those charges. Also, if a consumer's credit card is lost or stolen, he is only responsible for the first $50 of unauthorized charges. The Fair Credit Billing Act also compels lenders to promptly post payments, credits and process address changes.

The Fair Credit Reporting Act allows lenders to report on-time and missed account payments to the credit bureaus Equifax, Experian and TransUnion. Timely payments on open accounts report indefinitely; once the account is closed the positive credit history reports for 10 years. Missed or late payments report for seven years from the date of the incident. Consumers who believe they are victims of identity theft or unfair credit reporting can demand an investigation from the credit bureaus as well as the reporting lender. If the information is inaccurate or outdated, it must be removed from the customer's credit reports.

If you do not pay your credit card company, they can sue you or turn your account over to a collection agency. Under the Fair Debt Collection Practices Act, bill collectors cannot insult you, harass you, communicate with you by postcard or discuss the account with other people. They also must stop calling you if you ask them in writing to cease collection calls.