Thursday, January 2, 2020

How to handle unauthorized credit card charges?

Unauthorized credit card charges can put you in a disturbing situation, but it can be handled if you have enough knowledge. Any unauthorized credit card transaction should be reported to the authorities as early as possible. This is a crucial step to handle the situation. You should monitor the transactions online, instead of waiting for the billing statement to arrive.

Early detection and reporting of unauthorized credit card charges

Unauthorized credit card charges mean any charge in your credit card account for which you did not give permission. It can result due to stolen credit cards, clerical error, or a computer malfunction. Any unauthorized transactions on the credit card should be noticed as early as possible. If the credit card is stolen, then kindly use the phone number from the billing statement.

The most important thing that you must take care of is to protect yourself from phishing scams. People who have stolen your cards may ask you for a 3-digit number, which is printed on the backside of your credit card. When you call an authorized credit card center or the bank, they will immediately block your credit card and prevent it from further use. You can then issue a dispute letter to the credit card company, stating unauthorized use of your credit cards with the help of an expert.

Sometimes the credit card company tells you to settle with the merchant company which is involved in the transaction. But you should be aware that the phishing scams most often use fraudulent merchant companies, and therefore you cannot settle with them. Therefore, you must settle directly with the credit card issuer instead of going to the merchant company.

Filing a police report

Depending on the severity if a large amount of unauthorized transaction has been made on your credit card, you may have to file a police report. The police report should be kept with you and submitted to the bank to settle the disputed transaction.

Switching everything to the new account

If you have a direct and automated debit system linked to your credit card account, you must remove all the automatic charges linked with your account and redirect them to your new account. Such charges may include your household bills and your gym membership bills.

Monitoring account very closely

After you have resolved all your problems, you should keep a close watch on your account as the fraudulent activities can recur, leading to identity theft. 

Protection of Rights

Always remember that according to the law, the credit card company should always remove the disputed amount from your account, and you should have zero fraud liability. The credit card company cannot charge you any fee or interest unless and until they prove that you authorized the transaction.

If you need any legal assistance, you may visit Mr. Sanjay Choudhary, who is a Financial Advisor at Koda Financial Consultancy Dubai, UAE. You can get legal advice from him regarding your credit card fraud.

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