PS: Chapter 12 Set 5
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;
vii. If appropriate corrections are made, card issuer must
credit any finance charge erroneously billed
iv. When notice received: 1. Within 30 days
issuer must send a written acknowledgment that it has received the notice
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
l. Cardholders Rights Against Issuer for "Billing" Errors (1026.13). i. "Billing errors" include charges
that are not properly payable/unauthorized;
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.
ii. TILA-Fair Credit Billing Act provides process for
cardholder to raise a billing error claim (see list on page 534);
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.
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.