Image via WikipediaIF YOUR CREDIT-CARD BILL ARRIVES LATE
Credit-card bills must be mailed at least 14 days before the due date in order to be able to levy finance charges for late payment, according to the Truth and Lending Act. Best strategy: When a bill arrives late, save the envelope in which it came. The postmark will serve as documentation if you are unfairly billed. Source: Steven Cohen. attorney of the Division of Credit Practices at the Federal Trade Commission.
TO CORRECT BILLING ERRORS
Credit-card complaints must be in writing. Legally, phoned-in complaints don’t count. Written notice must be received by the bank or retailer within 60 days after the bill containing the error was mailed. Make sure inquiries are sent to the right department, and use certified mail. Creditors are required by the Fair Credit Billing Act to resolve complaints within 90 days. Source: Bureau of Consumer Protection, Office of Consumer and Business Education, Washington, DC 20580.
CREDIT CARD PROTECTION
For credit-card protection, photocopy the Ids themselves to keep track of which ones you have. It’s much more convenient to have III accounts on a single sheet of paper than to rely on keeping all the original agreements together. Keep one photocopy at home where it can be used to notify card issuers if a card is lost or stolen. Put another in safe-deposit box or other safe place. Spouses who travel with credit cards shouldn’t carry duplicate cards. Reason: If one person’s wallet is lost or stolen, the other’s cards are invalidated thereby leaving the coupIe in financial straits. Better: Each carries a different credit card. Source: Leon Gold, Phillips Gold & Co., CPAs, New York.
KNOW YOUR INSTALLMENT DEBT LIMIT
Rule of thumb: Installment debt should not exceed 10% of take-home pay. More than 20% debt indicates trouble ahead. Note: Do not include mortgage payments when calculating the amount of debt.
