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Consumer Information

Preventing Credit and Debit/Check Card Fraud – Credit card frauds are among the most common types of criminal offences.  However, consumers can protect themselves, their credit and prevent fraudulent activities on their accounts by:

  • Signing their cards when they arrive to prevent others from signing and using them.
  • Keeping a record of their card numbers, expiration dates and the phone number of the card issuer in a safe place.  This will enable him/her to notify the card company immediately if the card is stolen or missing.
  • Not giving their credit card number over the phone to unfamiliar companies or to people who say they need it to "verify" their identity for a prize or contest.
  • Destroying carbons and incorrect charge slips.

  • Drawing a line through blank spaces on charge slips and not signing a blank charge slip.
  • Keeping copies of all sales slips, opening credit card bills promptly and comparing the sales slips with the charges on their bill.
  • Reporting billing errors and unauthorized charges to their credit card company right away.
  • Reporting any change of address prior to moving to ensure prompt receipt of their bills.
  • Taking their ATM receipt after completing a transaction.

Federal regulations limits a consumers’ liability to $50 if they report the loss of their credit/debit card within two business days after realizing that it is missing and to $500 if they report the loss between 2 and 60 days.  Consumers can dispute discrepancies on their account or statement by taking the following steps:

Write to the creditor or card issuer within 60 days of receiving the bill containing the erroneous charges.  (Consumers may be able to dispute the charge even if more than 60 days have passed since they were billed for the item, but only recently noticed the discrepancy.)

Send the letter to the address provided on their bill; however, the letter should not be sent with their payment.

Be specific.  The letter should contain the consumer’s name and account number, the date and amount of the charge in dispute and a complete explanation of why the charge is being disputed.

To ensure their letter is received and that they have a record of it being sent, the consumer might wish to send it by certified mail, with a return receipt requested.

 

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The creditor or card issuer must acknowledge the consumer’s letter in writing within 30 days of receipt and an investigation must be conducted within 90 days.  While the bill is being disputed and investigated, the creditor or card issuer must credit the consumer’s account and remove any finance charges or late fees relating to the amount not owed by the consumer.  During this period the consumer will not need to pay the amount in dispute.  In addition, the creditor or card issuer may not take action to collect the disputed amount, including reporting the amount as delinquent and they may not close or restrict the consumer’s account.  If it is proven that the bill is correct, then the consumer must be told in writing what is owed and why.  The consumer may ask for copies of relevant documents, however, he/she will owe the amount disputed plus any finance charges.

Wage Garnishment – If a debtor is sued and the creditor obtains a court judgment against him/her, which goes unpaid, the creditor may collect that judgment by having the court order the debtor’s employer to take no more than 25% of his/her paycheck. 

Home Equity Scams - Certain lenders target homeowners who are elderly or who have low income or credit problems and then try to take advantage of them by using deceptive practices.  Some of these practices violate federal credit laws dealing with disclosures about loan terms, discrimination based on age, gender, marital status, race or national origin and debt collection. 

The Federal Trade Commission cautions all homeowners to be on the lookout for:

  • Equity stripping: The lender gives the consumer a loan based on the equity in their home instead of his/her income and ability to repay the loan.  If the consumer cannot make the payments on the loan, then he/she could end up losing the home.
  • Loan flipping: The lender encourages the consumer to repeatedly refinance the loan and often, to borrow more money.  Each time the consumer refinances, he/she pays additional fees and interest points, which will only serve to increase the consumer’s debt.
  • Credit insurance packing: The lender adds credit insurance to the consumer’s loan, which he/she may not need.
  • Bait and switch: The lender offers one set of loan terms when consumer apply, then pressures him/her to accept higher charges when he/she signs to complete the transaction.
  • Deceptive loan servicing: The lender doesn't provide the consumer with accurate or complete account statements and payoff figures.  That makes it almost impossible for the consumer to determine how much he/she has paid or how much is owed.  In the end, the consumer may pay more than is actually owed.