PS: Chapter 12 Set 5

xiii. The two basic billing error disputes

1. Unauthorized use; 2. Claim against the merchant

iii. If cardholder believes a statement contains a billing error,

written notice should be sent within 60 days of transmitting the statement of account. 1. Have 60 days to tell the issuer there's a problem.

ix. Card issuer may not report, or threaten to report

adverse information about the credit (to a credit reporting agency) before the card issuer has discharged its obligations

xiii. The two basic billing error disputes: 1. Unauthorized use; 2. Claim against the merchant. xiv. Both will trigger the

billing error resolution process. Will require card issuer to investigate as to claim, and potentially will have to recredit

1. Raise complaint under the billing rules TILA, another bank

can't use that against the consumer. Have a right to exercise Consumer Protection Act. Very strong protections as long as you go through the 60 day process.

viii. Card issuer must notify cardholder on subsequent statements of account that

cardholder need not pay the amount in dispute until the card issuer has complied;

ii. TILA-Fair Credit Billing Act provides process for

cardholder to raise a billing error claim (see list on page 534);

vii. If appropriate corrections are made, card issuer must

credit any finance charge erroneously billed

a. If the issuer doesn't agree, they must

explain to the consumer why

v. Issuer failing to comply forfeits its right to collect

first $50 of the disputed amount, including the finance charges; 1. Don't give notice, can't collect.

iv. When notice received: 1. Within 30 days

issuer must send a written acknowledgment that it has received the notice

xii. Card issuer that fails to comply with the requirements of the Act is

liable to the cardholder for actual damages, twice the amount of any finance charge and attorney's fees.

l. Cardholders Rights Against Issuer for "Billing" Errors (1026.13). i. "Billing errors" include charges

that are not properly payable/unauthorized;

2. Within 90 days or two complete billing cycles, whichever is shorter, issuer

must investigate the matter and either make appropriate corrections in the cardholder's account or send a written explanation of its belief that the original statement sent to the cardholder was correct. Issuer must send its explanation before making any attempt to collect the disputed amount.

vi. In addition, pursuant to Reg Z, creditor operating an open-end consumer credit plan may

not restrict or close an account due to a cardholder's failure to pay a disputed amount until the creditor has sent the written explanation required.

x. If cardholder continues to dispute bill in a timely fashion, the card issuer may

report the delinquency only if it also reports the amount is in dispute and tells the cardholder to whom it has released this information;

xi. Must disclose to third parties when

resolution has been reached