What is your liability on debit and credit cards?
Many consumers have at least one debit card and one credit card. Understanding the liability differences between each and knowing when it is the right time to use them is important. The Truth In Lending Act (TILA) and the Electronic Funds Transfer Act (EFTA) govern credit and debit cards, respectfully, and protect consumers using electronic banking methods in different ways. The lawyers at Doucet & Associates Co., L.P.A. have experience helping clients whose TILA and EFTA rights have been violated and have gathered some information to help you be more aware of your credit and debit card rights.
The TILA protects consumers involved in purchases that use borrowed funds through a credit card. The TILA says loan servicers and credit card companies must inform consumers about interest rates and fees before a consumer signs a contract. Consumers should also be made aware of any reoccurring payments and fraud liabilities. Under the TILA, credit card holders could be liable for up to $50 max of a fraudulent charge if reported to the credit card company in a timely manner. So, when making bigger purchases consumers should use their credit card because if the account is charged the wrong amount and the transaction gets messed up, the consumers’ liability cannot exceed $50.
The Electronic Funds Transfer Act (EFTA) protects the rights of consumers involved in electronic funds transfer activities. Electronic fund transfer activities are virtual transfers of money through phones, computers and magnetic strips without the direct contact of a banks staff. Direct deposit, wire transfers, debit cards, and online bill paying are examples of electronic fund transfer activities. Companies using electronic funds must notify consumers about their liability if their account is illegally accessed by a third party. Under the EFTA a consumers’ liability for a fraudulent charge on a debit card should not exceed $500 if reported in a timely manner.
If you think your TILA rights or EFTA rights have been violated, Doucet & Associates Co., L.P.A. may be able to help you. Our lawyers have extensive experience working with the TILA and EFTA and regularly refer to the statues when a consumer’s debit and credit card rights have been violated. Contact us today at (614)944-5219 or click here to send us a message online. You can also read more about the TILA and EFTA on our website by clicking here.