Government Protections Against Credit Card Fraud
You may already know that online stores do everything they can to protect their customers from thieves seeking to snatch your credit card numbers and other information. You may also be aware of credit card companies now offering free fraud monitoring with their cards, as well as little to no liability should your card even become lost or stolen. But is that all that is being done? What about the government and the Federal Trade Commission? Should they be doing something to help? Or are they and you just have never heard about it?
When it comes to the government and credit cards, anything that is consumer related goes through the FTC, or the Federal Trade Commission. They handle anything from automobiles to telephones to credit cards. Now the big question; are they, or have they, done anything to help you lately? In fact, the Federal Trade Commission laid down many of the ground rules that credit card companies have to follow today. For example, a Canadian company had started calling credit card holders and offering them extra “protection†against fraud and stating incorrect facts, such as being liable for more than $50, and they can give you added protection. The FTC was not happy about these actions and dealt a lawsuit to the company.
You are protected in several ways against fraud, though many people do not know it. A visit to the FTC’s official website can give you all the information, but here is a quick look into what you might find. First, when it comes to liability, you can only be liable of up to $50 under federal law. Even if the thief goes on a massive shopping spree, you do not have to pay for his $5,000 expenditure.
Second, the FTC states that a consumer is entitled to a free credit report. So if you have ever heard of having to pay for your credit report or getting a free credit report if you sign up for something, forget it. You are entitled to a free report once every 12 months. This means that if you want one more often, you will probably have to find another way of obtaining it. However, getting at least one credit report every year allows you to do your own fraud monitoring. By going over your report and double checking for anything strange, you can keep your credit in good standing. This also accounts for bills listed as paid late when they weren’t. You are also allowed to dispute incorrect information, which can then lead to it being corrected and giving your report a little boost. You are also entitled to a free report under the Fair Credit Reporting Act if any company decides to do something such as deny you credit, employment, insurance, or other financial transaction that has roots based on your credit report.
There is also the Equal Credit Opportunity Act which means you are allowed a fair chance at getting credit no matter what race, sex, religion, marital status, or other possible discriminations. You may fill out this information on the application, but it cannot be used to deny you credit. If you are denied credit, you also have the right to ask why and be given a valid answer. They may not be stealing money in the way most people think of credit card fraud, but it is still acting in a dishonest manner, and therefore a fraudulent practice.
If you have more questions, you can visit http://www.ftc.gov to have them answered. You do have rights when it comes to your credit cards, and knowing what they are can give you an extra edge just in case.