Your Financial Bill of Rights
In the more than 200 years since the July 4, 1776 signing of the Declaration of Independence which recognized the inalienable rights of life, liberty and the pursuit of happiness, the United States government has added rights protecting consumers. Do you know your financial bill of rights? We’ve listed some of them below. For more information and sample letters to solve consumer disputes visit the Federal Trade Commission website.
Gift Cards
This August, consumers gain a new right protecting them from unexpected costs relating to gift cards and ensuring that gift card terms and conditions are clearly stated. The rules by the Federal Reserve Board generally cover retail gift cards, which can be used to buy goods or services at a particular retailer such as chain restaurants and stores. It does not apply to cards carrying a payment network logo such as Visa and which can be used at any location.
Expiration dates for the cards are now set at no less than five years after they were issued or last reloaded with funds. Inactivity or service fees can only be charged if (1) you have not used the certificate or card for at least one year; (2) you can be charged no more than one such fee per month; and (3) you are given clear information about the fees.
Warranties
Written warranties are not required by law, however federal law does require that any warranties that are offered must be available for you to read before you buy including when you're shopping by catalog or on the Internet.
Implied warranties are created by state law and they cover almost every purchase. The most common type is a "warranty of merchantability," that states that the product will do what it is designed to do (a cell phone will make calls) while another type is a “warranty of fitness for a particular use,” that a product will perform under stated circumstances (a cell phone will work on land but not under water).
Some states allow merchandise to be sold “as is,” which indicates that it is not covered by any written or implied warranties. In all instances, try to solve disputes with the seller before taking additional steps such as contacting your local consumer protection office or going to court.
Rebates
The law requires companies to send rebates within the time frame promised, or if no time is specified, within a "reasonable" time, which is often interpreted as within 30 days. If it doesn’t arrive on time, contact the company. If it never arrives, file a complaint with the FTC, the state Attorney General or the local Better Business Bureau.
Mail and Telephone Purchases
By law, a company should ship your order within the time stated or within 30 days of taking your order if no time is specified. If the company is unable to ship within the promised time, they must give you an “option notice” allowing you the choice to wait or to cancel the order and receive a full refund.
There are different rules to help you if you don’t receive your merchandise at all or it comes too late, but they depend on how you are paying for it. While purchases made with a credit card offer certain protections, you may not be able to get a refund on things you buy with a debit card. Some debit card issuers offer voluntary protections and you should check with your debit card issuer for its policies.
If you are applying for credit to pay for the purchase, the company has 50 days to ship your order after you place it. Also, if you financed your purchase through the merchant, you may be entitled to protections under state and federal law depending on the contract.
Door-to-Door Purchases
The FTC’s Cooling-Off Rule gives you three days to cancel purchases of $25 or more made at your home, workplace or dormitory, or at facilities rented by the seller on a temporary short-term basis, such as hotels, convention centers and fairgrounds. The rules do not apply to items purchased by phone or mail, goods not primarily used for personal or household use or sales resulting from negotiations begun at the seller’s permanent location. Certain categories of goods and services are also excluded such as real estate, cars, securities
and insurance.
You must be told of your cancellation rights at the time of the sale and given two copies of a cancellation form (one to keep and one to send back) along with a copy of your contract or receipt. To cancel a sale, sign and date one copy of the cancellation form. You don’t have to give a reason for canceling the purchase but make sure the envelope is post-marked before midnight of the third business day after the contract date.
Where to Turn for Help
The FTC is the law enforcement agency protecting consumer rights. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.
Complaints of fraud are entered into the FTC database and made available to nearly 630 law enforcement agencies in the U.S. and Canada. You can report a fraud through a toll-free Consumer Help Line, 1-877-FTC-HELP (1-877-382-4357). The line is staffed by counselors from 9 a.m. to 8 p.m., Eastern Time, Monday through Friday.
