 South Dakota Credit Cards
Credit cards and revolving charge accounts are regulated by law. The cards regulated by law are the
typical charge cards issued by major retail stores, banks, financial institutions and oil companies. These
credit cards are used to purchase goods and services on revolving charge accounts. The major
difference between an open account and a revolving charge account is
the degree of formality and credit use.
USING YOUR CREDIT CARDS
Your credit card can be dangerous in the wrong hands. Always remember to keep your credit card,
cash card or telephone card information in a safe place. The following are some helpful tips when using
your credit cards:
- Whenever you give your credit card numbers to anyone, you have authorized that person/company
to charge your account. A written authorization by you is NOT required to charge your
account.
- If you disagree with a charge on your account, contact your credit card company
IMMEDIATELY. They can tell you how to formally dispute a charge.
- Many credit card companies use a code for identification, such as your mother’s maiden name or a
Personal Identification Number (PIN). Someone can charge on your card with just your code and
the expiration date. NEVER GIVE THIS INFORMATION OVER THE PHONE.
- Your liability for fraudulent use from loss/theft is limited if you notify the issuer.
- Telephone card fraud is common. Keep your phone card information in a safe place.
CREDIT CARD RATES, TERMS, ETC.
The interest rate allowed on a credit card account is called a credit service charge. Like interest rates,
there is no maximum credit service charge rate under South Dakota law. Any credit service charge
rate that both parties agree on can be set, subject to the federal Truth-in-Lending Act and other
provisions. South Dakota provides that these credit service charges may be compounded and a
minimum charge on each monthly bill may be assessed.
A credit card company may change the terms of any credit card arrangement. Changes must be made
in writing and the customer must be given notice prior to the change. Changes may include the credit
card service charge, fees and other costs that can be applied to existing balances as long as the card
holder does not, within 25 days of the effective date, furnish written notice to the company that he
does not agree to such changes. If the notice is given by the customer, the customer must stop using
the card.
EQUAL CREDIT OPPORTUNITY ACT
This act requires that credit grantors extend credit fairly and without considering race, color, age, sex,
or marital status.
FAIR CREDIT BILLING ACT
This act says that if you receive a billing that you feel is incorrect and you notify the creditor in writing
within 60 days, the creditor must either correct the bill or send you an explanation within 90 days.
TRUTH IN LENDING ACT
This act requires credit grantors to tell you what using credit really costs (like interest rates, minimum
monthly payment, finance charge, etc.).
FAIR CREDIT REPORTING ACT
This act guarantees your rights regarding your credit file. If you are turned down for credit due to a
credit report, you can get a copy of it from the credit bureau at no cost. Otherwise, a copy of your file
from a credit bureau involves a fee. You do have the right to dispute incorrect information in a report.
Under the Fair Credit Reporting Act, you have the right:
- To be given the address of the credit bureau that prepared the report used to deny you credit,
insurance or employment.
- To be told by a credit bureau the nature, substance and source(s) of the information collected about
you.
- To take anyone of your choice with you when you visit the credit bureau.
- To be told who has received a credit report on you within the preceding six months or within two
years for employment purposes.
- To have incomplete or incorrect information reinvestigated and if the information is found to be
inaccurate, to have such information removed from your file.
- To have the agency notify those who have previously received the incorrect or incomplete
information that this information has been deleted from your file.
- To have your version of a credit report placed in your file and included in future credit reports.
- To request the reporting agency to send your version of the dispute to certain
businesses for a reasonable fee.
Information from the South Dakota Office of the Attorney General
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