Credit Card Claims and Defenses
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Credit Card Claims and Defenses
Introduction
When you encounter defective goods or services that you paid for with a credit card, and the merchant isn’t resolving the issue, you can file a dispute with your credit card company using a process known as "Claims and Defenses."
Understanding Claims and Defenses
Claims and defenses are legitimate reasons for contesting a credit card charge. They include billing errors, unauthorized charges, or issues with goods or services that were misrepresented, defective, or not delivered. Under federal law (15 USC 1666i), credit card companies can be held accountable.
How to Assert Claims and Defenses
To assert your claims and defenses, write to your credit card company. Demonstrate that you've attempted to resolve the issue with the merchant directly but were unsuccessful. Inform them that you will withhold payment until the issue is resolved.
Limitations on Raising Claims and Defenses
There are some restrictions. The disputed purchase must have occurred in your state or within 100 miles of your home, and the charge must be over $50. If the credit card company and the merchant are affiliated, such as a store and its card, these limitations do not apply. This also holds true for ads in your credit card statement.
What If You've Paid the Disputed Amount?
Once you've paid the disputed amount, you cannot assert claims and defenses. However, if you paid partially, you can still file a claim for the remaining balance.
Purchases Made Over the Phone
You can use claims and defenses for telephone purchases. If a telemarketer charges your card for fraudulent goods or services, you can dispute these charges.
Out-of-State Phone Orders
If a company contacts you by phone, the purchase legally occurs where you receive the call, allowing you to refuse payment and assert claims and defenses if fraudulent. However, if you initiate the call to an out-of-state company, the purchase is considered to take place at the merchant's location, making you ineligible to assert claims and defenses.
Time Limit for Asserting Claims and Defenses
You must file a lawsuit for the disputed amount within one year of purchase. However, if the retailer or card issuer sues you, you can raise your claims and defenses at any time.
You can find the original non-AI version of this article here: Credit Card Claims and Defenses.
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