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When students apply for credit cards and sign on the contract, credit card issuers assume that they have gone through every detail. Even though majority of the authority rests with the issuers, you need to understand your basic rights over the use of student credit cards. Fair Credit Billing Act bestows certain rights on students. While exercising such rights, students need to ensure they do not go against the rules as stated in the act.
Disputable rights
Any action students wish to take has to be in order and within a specified timeframe. Students may come across problems, while using credit cards, most of which are concerned regarding purchases. As such, they own the right to dispute over some issues. The disputes mainly arise in billings you receive from merchants. What if someone has unauthorized access to student credit cards? To tackle such complicated issues, Fair Credit Billing Act (FCBA) offers certain disputable rights to students.
Nature of Disputes:
Billing: Often you, as credit card holder, may have a dispute with merchants for goods, which either you do not receive or are not in good condition. If this happens to you, follow the steps as below:
1. Within two months from the date of receipt of first statement that lists the dispatched item, contact your credit card issuer in writing. Use separate address for billing inquiries. In addition, make sure you mail the letter including your name as it appears on your account. Mention the account number, complete information of the item you wish to dispute and your specific need, be it rectification of mistake from the (merchant) delivery end.
2. Sign the letter before sending across. Preserve a copy of it for future reference. Any supporting documentation you send such as receipt, maintain a copy of it too. Stick to mailing method, which proves you have disputed over anything with the credit card issuer and it acts as certified mail. Accordingly, expect a notification from the issuer within thirty days, since the day of sending the mail. The issuer will then investigate into the matter in question and get back to you.
While investigation is on, you neither make payment for the disputed item nor for any charges that may arise due to it. You are free from any potential liability, if the case is in your favor. Otherwise, you are responsible for paying as mentioned in the cardholder agreement.
Charges without official authorization
These problems are often times associated with student credit cards. For student credit card holders, their responsibility for disputing unauthorized charges is restricted to $50. It may seem uncomfortable to pay $50 for you. Many credit card holders suffer heavy losses, as many cardholders are falling prey to identity theft.
Disputes normally arise as with the use of student credit cards. Often, due to identity mismatch, you might suffer greatly. Be the dispute of any nature, you have the right to fight for it with the credit card issuer. Make sure you dispute in a legal manner and as stated by the FCBA. It is best to talk to an attorney to know more on your rights as a student credit card holder.
Catch them young seems to be the mantra, and that is what credit cards the companies, which are in the business of issuing the credit cards, are doing. The companies have selected a new category of credit card users, the students, and they are issuing credit cards to them. These cards are called as Student credit cards. What is the need for a student credit card to be given to a student, you may ask? The students are being initiated into the wonder world of credit card, by giving them the student credit cards. It is a sort of initiation into the world of credit cards by the companies. The student credit cards have a snobbish value in the student community, as by flaunting the card one can always claim certain privileges, which may not be available if you are doing some transaction in cash. The biggest advantage that the student credit card is having is that the holder of the card can claim privileges at the favorite hangout of the students like the cinema halls; the cafes and the coffee shops sand other eating joints.
The advantage of a student credit card becomes apparent if you are throwing a party and suddenly the size of the party has increased. In such a sticky situation there are two options, either you request the money from the friends or pool it. But how many of us like to do that in the present times, as if such a situation arises it leads to a loss of face. Then what is the way out, it is the Student credit card. The student credit card has also the benefit of being used to gain privileged access to cinema halls on the eve of release of the feature films, and this is one of the best ways to impress the friends and acquaintances. For the holder of the student credit card, if he has a good credit rating, once he graduates to a job, there are always the possibilities that he may get the normal credit cards without having to apply once again. So the holder of the student credit card having displayed his credit worthiness generates good credit ratings for himself.
While the banks may be enthusiastic to issue the student credit cards to the students, there is no despair for the parents as well. In fact they can encourage that the student credit cards be given to the students, as the parents only will be paying for the due amounts. The parents once they provide the student credit cards to their wards are in a position to monitor their day-to-day activities in a better manner.
The student credit cards serve the dual purpose for the payments. On the one hand they can dispense with the pocket money to be given to the wards and provide them the minimum cash. Once the cash provided is to the bare minimum and the transactions have to be done through the student credit cards, then monitoring the expense of the ward is very easy. From the bills that are received a parent can monitor the spending habits of the child and can have a one-to-one chat with him to change his spending habits if the parents do not like the habits. Secondly, by limiting the cash in hand, and forcing the ward to use the student credit card, the parent can indirectly bring into control the intake of junk food of the students from the street.