October 2018

FEDERAL DEPOSIT INSURANCE CORPORATION consumer news PHOTO: GETTY IMAGES Credit and Debit Card Billing Issues What You Need to Know

People are making more purchases than ever with credit and debit cards. Te more Event Consumer’s Responsibility Consumer’s Liability you use your cards, the more likely it is you will experience a credit or debit billing issue, Your debit card Notify the bank within two business You will be responsible for no more such as an unauthorized purchase, a charge or personal days after learning of the loss or theft. than $50 of the unauthorized transfer. for an incorrect amount, or a returned item identifcation not properly credited to your account. number (PIN) Notify the bank within 60 days after You may be responsible for as much is lost or stolen. you received your statement showing as $500 of the unauthorized transfer. What can you do to protect your money? the frst unauthorized transfer. Tere are federal laws in place to assist You may be responsible for all consumers and limit their liability for Notify the bank more than 60 days of the unauthorized transfer that debit and credit billing issues – Regulation after you received your statement the institution establishes would not E and the Electronic Funds Transfer Act showing frst unauthorized transfer. have occurred had the consumer (EFTA) for debit cards and Regulation Z notifed the institution within the and the Truth in Lending Act (TILA) for 60-day period. credit cards. (Regulation E and EFTA will provide protections for prepaid accounts efective April 1, 2019.) Your debit Notify the bank within 60 calendar You will not be responsible for any card or PIN days after you receive the statement amount of the unauthorized transfers. Regulation E provides protections for is not lost or on which the unauthorized transfer consumers who transfer funds through stolen, but the frst appears. You may be responsible for all electronic methods. Tese methods include card number of the unauthorized transfer that point-of-sale (POS) and automated teller is used for Notify the bank more than 60 days the institution establishes would not machine (ATM) transactions as well as unauthorized after you received your statement have occurred had the consumer automatic withdrawals from your bank account. transactions. on which the unauthorized transfer notifed the institution within the Consumers’ responsibilities and potential frst appears. 60-day period. liabilities for unauthorized transactions under Regulation E are outlined in the chart here. and unauthorized transactions as quickly Event Consumer’s Responsibility Consumer’s Liability as possible. It’s also a good idea to review your credit reports regularly for inaccurate Your credit card is lost Notify the card issuer as soon You may be responsible information. You are entitled to a free copy or stolen. as you are aware that the card for no more than $50 of of your credit report from each of the three is missing. the unauthorized charges. If major credit bureaus once every 12 months. unauthorized/fraudulent charges To order your free annual reports, go to derive from telephone, online, AnnualCreditReport.com or call toll-free or mail transactions your liability 1-877-322-8228. is $0.

You notice unauthorized Notify the card issuer within You may be responsible To learn more about debit and credit card charges (for example, 60 days from the receipt of for no more than $50 of billing issues and dispute resolution visit your card was charged your billing statement showing unauthorized charges. the following sites: for goods or services not any unauthorized charges or • https://www.fdic.gov/consumers/ received, the merchant billing errors. assistance/protection/errorresolution. charged an incorrect html amount, or the merchant • https://www.consumer.ftc.gov/ charged your card twice). articles/pdf-0109-electronic- banking.pdf • https://www.consumer.ftc.gov/ Your credit card number Notify the card issuer as soon You may be responsible articles/0218-electronic-banking is stolen. as you are aware that the card for no more than $50 of • https://www.consumer.ftc.gov/ is missing. unauthorized charges. articles/0385-sample-letter-disputing- billing-errors

Regulation Z and TILA provide safeguards Additionally, many credit card issuers have If you have any concerns with a billing against inaccurate and unauthorized zero-liability policies, meaning that customers issue or dispute resolution with your card charges to open-end and revolving credit typically do not pay for unauthorized issuer or bank, contact the FDIC through accounts, including credit cards. According transactions, so contact your credit card issuer our Customer Assistance Form, which to Regulation Z, you do not pay the disputed as soon as you discover any. can be found at www.fdic.gov/consumers/ amount while the transaction is under assistance/filecomplaint.html or call investigation by the bank; however, you are Be sure to review your credit card and bank 1-877-ASK-FDIC (1-877-275-3342). required to make payments on any portion statements regularly to catch billing errors of the bill that is not in dispute, including fnance charges. Consumers’ responsibilities For more help or information, go to www.fdic.gov or under Regulation Z and TILA are call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342). outlined in the chart above. Please send your story ideas or comments to Consumer Affairs at [email protected]