Hello Bakshi,
I'm afraid the outlook for your situation is not favorable. I've
spent several hours researching your query, and while you *might* have
some luck in the civil courts, the fact that this is all a year gone
by definitely works against you.
(From the phrasing of your question, it appears you - the primary
accountholder - live in the US, and your SO lives in the UK. If this
is incorrect, please advise and I will investigate further.)
Under the Fair Credit Billing Act, your maximum liability for
unauthorized charges is just $50. If the loss involves the use of
your number, but not the loss of your card (as in the instance you
describe), your liabiity is $0 - provided you follow certain
procedures:
-- write to the creditor within 60 days of receiving the statement on
which the unauthorized charge appears. Be certain to include your
full name as shown on the account, your address, your account number,
and a detailed description of the billing error.
-- send it to the address provided for *billing inquiries* (this
address should be listed on the reverse of each statement, as well as
in your terms and disclosures documentation. Telephoning does *not*
protect your rights under the FCBA, neither does writing to the
customer service department.
-- include copies of any supporting documentation you may have (for
example, a copy of the contract with the vendor, clearly showing the
date of the end of the contract).
-- ask for written proof of purchase (for example, a copy of a
merchant's receipt bearing your signature or that of an authorized
buyer)
-- send your complaint so it reaches the creditor no later than 60
days after the bill on which the error occurred. Be certain to send
it certified, return receipt requested, so you have proof of both
mailing and receipt.
After the creditor receives your letter, they *must* respond in
writing within 30 days, explaining that your query is being
investigated.
During the time that the charge is being disputed, you are not
obligated to pay any portion of the disputed charges, including any
interest or fees derived from the disputed amount. You are still
obligated to pay any charges that are unrelated to the dispute,
however.
While your bill is in dispute, the creditor may not:
-- close or restrict your account
-- initiate collection proceedings
-- report you as delinquent
The creditor must resolve your dispute within two billing cycles, but
in no instance more than 90 days after your letter is received.
If the creditor deems that your bill does indeed have an error, they
must credit the disputed amount, as well as any fees or interest
charges, back to your account, and must detail in writing what steps
are being taken to correct the error.
If the creditor deems that your bill does *not* contain an error, they
must provide an explanation in writing as to why you owe the disputed
amount. If you ask for supporting documentation, the creditor is
obligated by law to provide it.
In this instance, you have two choices:
-- pay the disputed amount
-- refuse, in writing, to pay the disputed amount
If you refuse to pay the disputed amount, you must notify the creditor
in writing within 10 days of receiving your letter of explanation. At
this time, the creditor may initiate collection proceedings and report
you as delinquent. However, the creditor *must* also report that you
are refusing to pay a disputed bill.
If, at any time, the creditor fails to follow proper procedure under
the FCBA (for instance, does not acknowledge your complaint in writing
within 30 days or does not explain the outcome of the investigation
within 90 days, or reports you delinquent or fails to report that you
are refusing to pay because you dispute the bill), they may not
collect any portion of the disputed amount, even if the bill
eventually is found to be correct.
(It is imperative that the consumer likewise follow the procedure to
the letter, to protect his own rights under the FCBA.)
Credit, ATM and Debit Cards: What to do if They're Lost or Stolen
http://www.ftc.gov/bcp/conline/pubs/credit/atmcard.htm
Fair Credit Billing Act
http://www.ftc.gov/os/statutes/fcb/fcb.pdf
FTC Facts for Consumers: Fair Credit Billing
http://www.ftc.gov/bcp/conline/pubs/credit/fcb.htm
Consumer Credit Laws
http://makeashorterlink.com/?W13835CE4
Your Credit Rights - How the Law Protects You
http://www.frbsf.org/publications/consumer/creditrights.html
US Code TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part B > Sec. 1637.
http://www4.law.cornell.edu/uscode/15/1637.html
DebtSaviors - The Fair Credit Billing Act
http://creditsaviors.com/laws.html
Credit and Your Consumer Rights
http://www.ftc.gov/bcp/conline/pubs/credit/crdright.htm
How Credit Works
http://www.capitalone.com/credit101/credit/
Credit Billing Errors
http://www.lectlaw.com/files/cos73.htm
Credit Cards and ATM Cards
http://www.ruf.rice.edu/~owlwatch/atm.htm
Security and Fraud
http://www.smartcredittips.com/secu.html
From your query, it is unclear whether you followed the FCBA
guidelines in the course of your dispute, nor is it clear whether
American Express adhered to the guidelines.
Your first course of action at this point would be to gather all of
your supporting documentation. Contact American Express' billing
department and get the name and telephone number of the person in
charge of the department. Be certain to keep notes of any
conversation you have with this person.
Explain the situation in detail, *in writing*, and send it to this
person's attention. They *may* be willing to help straighten this out
for you, in spite of the fact that the FCBA no longer applies. It's
imperative, however, that you work with a supervisor - not a phone
person. (I attempted to obtain this information for you, but AmEx
refused to disclose it, citing security and privacy policies because I
am not a cardholder.)
If you are unsuccessful, and believe that American Express did not
follow FCBA procedures at the time of your original dispute, your next
step is to contact a consumer credit agency for advice. If you can
document that procedure was not followed, so much the better.
Well known among these agencies is the San Francisco based Consumer
Action organization. They've offered help and education for more than
thirty years, and can help evaluate your situation and point you
toward a competent attorney if neccessary. Be forewarned, however,
that attorney fees may very well exceed the amount in dispute - if
this is the case, attempting to recover damages may well result in
your having to turn the entire amount (and possibly more) over to the
attorney.
You shouldn't consider suit until a skilled consumer credit agent has
looked over all of your documentation and has fully explained your
rights and any methods of recovery available to you.
Consumer Action
info@consumer-action.org
415-777-9635
213-624-8327
http://www.consumer-action.org/English/library/credit_cards/2000_PreventingCreditFraud/index.php
You can explain your entire situation to them via a Hotline
submission:
Consumer Action Complaint Hotline
http://www.consumer-action.org/English/Email_Hotline.php
You might also consider contacting a consumer credit agency in your
area. To find National Foundation For Credit Counseling affiliate in
your area, visit their locator:
National Foundation For Credit Counseling
http://www.debtadvice.org/takethefirststep/locator.html
For additional information regarding your rights as a consumer, I
would suggest you send for the FTC's pamphlet explaining your rights
and responsibilities under the FCBA.
Fair Credit Billing
Public Reference
Federal Trade Commission
Washington, D.C. 20580
You may also consider suing the vendor in the UK - procedures vary,
but I will investigate them for you if you believe you might prevail
in such an action.
I hope this information helps you get things straightened around with
American Express. If you need further assistance, please don't
hesitate to ask for clarification. I'll be happy to investigate
further if need be.
Good luck!
--Missy
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