Don't wait until you have a problem with your card to find out your rights.
Things can go wrong when you use a credit card, even if you spend within your credit limit and pay your bills promptly. It makes sense to keep your receipts, check them against your monthly statement, and notify the card issuer right away if you spot any charges you didn't make or other errors.
Most card issuers respond promptly to these reports, and usually replace your card to prevent further misuse. Many issuers are proactive. They notify you if they see activity on your card they consider out of the ordinary, based on your normal card use.
MAKING CREDIT FAIR
While there's no question that being able to use credit cards has made managing money easier for many people, it's also true that many card users have faced large fees, unexpected charges, and rate increases they considered excessive an unjustified.
Combating abusive credit card practices has been an ongoing process, beginning with the Consumer Credit Protection Act, which took effect in 1969. Major new provisions, created in response to evolving problems, were added in 1970, 1977, 1978, 1989,1996, 2004, and most recently in 2009.
The Credit CARD Act of 2009 requires "plain language in plain sight" and provides other protections against unfair charges and deceptive practices.
SAFETY TIPS
- Never give your credit or debit card number (or card) to anyone unless you're buying something or making a reservation. Since merchants can't charge your credit card account if your check bounces, or is returned unpaid, there's no reason to write the card number on your check for them. And there's no obligation to put your phone number, name, or address on a credit card receipt even if the seller asks for that information. In some states, it's illegal for a retailer to ask you to do this.
- Be careful with your account records and receipts, especially if they have the card number on them. Thieves can use your number to charge purchases, order new cards, or open new accounts.
- Never make your personal identification number (PIN) available to anyone. Don't write it anywhere a thief may have access to it. Many experts also advise you to use a PIN others can't figure out easily. But the PIN has to be one you can remember.
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