Credit Card Rules for Returns
Credit cards offer the convenience of purchase protection, which covers you for purchases that are damaged, in poor quality or not up to your level of satisfaction. Credit card rules for returns vary by card type, however, the law clearly states what your rights are as a consumer when it comes to returns.
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Identification
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Federal consumer credit laws are set up to protect consumers against fraud, duplicate or erroneous billing, deceptive sales practices and credit card theft. Under the conditions of the Fair Credit Billing Act (FCBA), a creditor must promptly correct any billing error reported by a consumer and promptly issue a credit payment. The act also states that a consumer can withhold payment on any good that is defective at the time of purchase. The Truth in Lending (TIL) act grants consumers a three-day grace period when making credit transactions that require collateral. The Truth in Lending Act also limits consumer responsibility for lost and stolen credit cards.
Misconceptions
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Before a consumer can request a refund or dispute a credit charge, he must first make an effort to reach a solution with the merchant. If the merchant refuses to offer a replacement product or issue a credit for the damaged good, a consumer can exert his rights under the terms of the Fair Credit Billing Act and withhold payment.
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Limitations
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Rights under the Fair Credit Act may be limited if the credit card issuer is a bank, travel or entertainment company separate from the store where you made your purchase. For example, the good or service in dispute must have a retail value of $50 or more and have been purchased at a location within 100 miles of your home residence.
Prevention/Solution
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If your credit card is stolen, you are not responsible for any unauthorized charges and can have the complete amount refunded to your charge account for less a maximum of $50, as per the Truth in Lending Act. However, you must report your lost or stolen credit card to the credit card issuer immediately. You must pay up to a maximum of $50, regardless of whatever amount is charged to your card while it is lost or stolen.
Warning
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Retain your original purchase receipt for your records, but provide a copy to your credit card issuer along with supporting documents. If you do not have supporting documents, provide the name, address and phone number of the merchant as well as the name and title of any person to whom you've spoken about the product you wish to return.
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References
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