The Federal Trade Commission reports that there were more than 393,000 credit card fraud cases reported in 2020, a 45% increase from the 291,000 cases recorded in 2019, whose numbers have been steadily growing in recent years. The FTC has not released its data for 2021 to date.
Credit card fraud is one of the most common forms of identity theft and involves the criminal use of another person’s personal credentials to use the credit card to purchase goods and services in an unauthorized manner.
The Fair Credit Billing Act (FCBA) is a 1974 amendment to the Truth in Lending Act that establishes consumer protections against inaccurate or fraudulent credit card charges and other billing errors.
If you receive a billing error, the law allows you to dispute the charge by submitting a written statement to the credit issuer. The FCBA limits liability to $50, regardless of the total amount charged by an unauthorized user.
Disputed charges must be reported within 60 days of the statement date, and the credit card company has 90 days from the day they receive notice to act.
If you have been a victim of credit card fraud, you have certain legal rights under the Fair Credit Billing Act. To take advantage of this law, you must notify the issuer immediately.
You can send a claim statement (including your card information and a statement of fraud, along with any documents that support your case) to your credit card company’s address for billing inquiries, not to the address that sends card payments.
You must submit this dispute letter within 60 days of when you first received the card statement with the fraudulent charges. It would be best to send it by certified mail, return receipt requested so that you have proof of delivery.
You may be allowed to submit your dispute letter electronically, but only if requested to do so by your issuer. The card issuer must acknowledge receipt of your letter within 30 days of receipt and must also resolve your issue within 90 days of receipt.
Fortunately, for consumers, most credit card fraud cases end with the disputed charges being removed or the money returned to your account. But in the meantime, you should have received new cards, with new account numbers, to replace the compromised accounts.
If you do not have a card or want to purchase one, you can opt for Chime because there is no minimum security deposit required, if you have a card you can protect your accounts with Identity Guard and Norton 360 with Lifelock Family who present a variety of plan options for individual and family protection.
Today we provide you with the following report so that you can take the best measures and economic decisions.
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