Understanding Maryland’s Protection Against Unauthorized Charges

Maryland consumers have a strong legal framework to protect themselves against unauthorized charges on their bank accounts and credit cards. Understanding these protections can help individuals manage their finances more effectively and avoid potential fraudulent activities.

Under Maryland law, consumers are generally protected from unauthorized transactions through two main statutes: the Maryland Consumer Protection Act and the federal Electronic Fund Transfer Act (EFTA). These regulations help ensure that unauthorized charges do not put a burden on consumers.

The Maryland Consumer Protection Act prohibits unfair or deceptive practices in commerce. This means that if a business charges a consumer without consent or fails to provide clear information about charges, the consumer can file a complaint with the Attorney General's office. This law is essential for individual accountability among businesses and allows consumers to seek restitution.

The EFTA, a federal law, specifically addresses electronic funds transfers, including those made with debit cards, prepaid cards, and ATMs. Under this act, if a consumer reports an unauthorized transfer within two business days, their liability is limited to $50. If the report is made after two days but within 60 days of the bank statement, liability can increase up to $500. However, if a consumer fails to report the unauthorized charge within 60 days, they could be responsible for the full amount. This serves as a crucial motivator for consumers to monitor their financial accounts regularly.

To enhance protection against unauthorized charges, Maryland consumers are encouraged to take proactive measures. Regularly checking bank statements and transaction histories can help identify any discrepancies early. Setting notifications for transactions and using secure passwords for online banking can also reduce the chances of unauthorized access.

In the event of unauthorized charges, it is vital for consumers to act swiftly. Reporting the issue to the financial institution as soon as a charge is spotted can greatly mitigate potential losses. Additionally, consumers should follow up with a written dispute to ensure the issue is formally recorded. Keeping copies of correspondence is also advisable for future reference.

Maryland also has a network of resources available for consumers who feel they have been wronged. Organizations like the Maryland Attorney General’s Consumer Protection Division provide valuable guidance and can assist in the resolution of disputes. Seeking legal advice is another option for navigating more complex cases of unauthorized charges.

In summary, understanding the legal protections against unauthorized charges in Maryland empowers consumers to fight back against fraud. By remaining vigilant, acting quickly upon noticing unauthorized transactions, and utilizing available resources, consumers can safeguard their financial health effectively.