Fraud or Unauthorized Charges on Your Credit Card? Here’s What to Do Under TILA (Texas & Alabama Consumers)

Discovering fraud or unauthorized charges on your credit card is stressful. Whether it’s a $50 mystery purchase or thousands of dollars drained overnight, the fear is the same:

• Am I responsible for this?
• Will this ruin my credit?
• What if the credit card company refuses to remove it?

If you live in Texas or Alabama, you have powerful federal protections under the Truth in Lending Act (TILA) and many credit card companies violate those protections.

If your credit card issuer is ignoring your dispute, delaying its investigation, or reporting fraudulent charges to credit bureaus, you may have a legal claim for damages, attorney’s fees, and statutory penalties.

What Is TILA and How Does It Protect You?

The Truth in Lending Act (TILA) is a federal law passed to protect consumers in credit transactions — including credit cards.

Under TILA:

• You are not responsible for unauthorized credit card charges beyond limited statutory caps.
• Credit card companies must follow strict investigation procedures.
• They must respond within specific timeframes.
• They cannot simply ignore your dispute.
• They cannot damage your credit during a proper investigation.

If they fail to follow these rules, they may owe you damages.

What Counts as an Unauthorized Credit Card Charge?

An unauthorized charge typically includes:

• Stolen credit card use
• Identity theft
• Fraudulent online purchases
• Charges after your card was lost or stolen
• Transactions made without your permission

Under TILA, you are generally liable for no more than $50 in unauthorized charges — and often zero, especially if reported promptly.

If a credit card company tries to hold you responsible for more than that, it may be violating federal law.

Step 1: Report the Fraud Immediately

Time matters.

As soon as you notice unauthorized charges:

1. Call the credit card issuer.
2. Report the fraudulent transactions.
3. Ask them to close the account and issue a new card.
4. Follow up in writing.

Why Written Notice Matters

Under TILA’s billing error provisions, written notice is critical.

To preserve your rights:

• Send a written dispute letter within 60 days of the statement date where the charge first appeared.
• Include:
  • Your name and account number
  • The dollar amount in dispute
  • A statement that the charge is unauthorized
  • Why you believe it is fraudulent

Send it certified mail if possible.

Many consumers in Texas and Alabama lose leverage simply because they only call and never send written notice.

Step 2: The Credit Card Company Must Investigate

Once you send written notice, TILA requires the creditor to:

• Acknowledge your dispute within 30 days
• Complete an investigation within two billing cycles (not more than 90 days)
• Either:
  • Correct the error, OR
  • Explain in writing why they believe the charge is valid

Step 3: They Cannot Damage Your Credit During Investigation

Here’s where many TILA violations occur.

While your dispute is pending:

• The creditor cannot treat the disputed amount as delinquent.
• They cannot report it as late to credit bureaus.
• They cannot accelerate the debt.
• They cannot threaten collections on the disputed portion.

If they do, that may be a separate federal violation.

In many cases I see in Texas and Alabama, consumers:

• Dispute fraud,
• The bank “investigates,”
• Denies the claim without meaningful review,
• Continues reporting late payments,
• And damages the consumer’s credit score.

That is not how TILA works.

Step 4: What If the Credit Card Company Denies Your Dispute?

This is where legal representation becomes powerful.

Many banks rely on automated systems, superficial reviews, or vendor investigations. That does not always meet TILA’s legal standard.

If their investigation was unreasonable, you may have a claim and should contact a consumer attorney as soon as possible.

Signs Your Credit Card Company Violated TILA

You may have a TILA claim if:

• They never acknowledged your written dispute.
• They took longer than 90 days to resolve it.
• They reported the disputed charge as late.
• They required you to pay the disputed amount during investigation.
• They refused to provide investigation results.
• They denied fraud without meaningful explanation.
• They reinserted the charge after initially removing it.

These cases are more common than most consumers realize.

What Damages Can You Recover Under TILA?

If a credit card issuer violates TILA, you may recover:

• Statutory damages
• Actual damages (including credit harm)
• Attorney’s fees
• Court costs
• Possible punitive damages if other claims are involved

That last part is critical.

TILA allows consumers to recover attorney’s fees.

That means you may be able to pursue your claim without paying upfront legal fees.

Why TILA Cases Matter in Texas and Alabama

I regularly see banks and credit card companies:

• Dismiss legitimate fraud disputes.
• Fail to follow billing error procedures.
• Continue collection activity during investigation.
• Damage credit reports.
• Intimidate consumers into paying fraudulent charges.

And when creditors ignore those rights, they can be held accountable in federal court.

Identity Theft vs. Billing Error: Does It Matter?

Under TILA, unauthorized use is treated as a billing error.

However, identity theft cases may also involve:

• Fair Credit Reporting Act (FCRA) violations
• Debt collection harassment issues
• State law claims

In many situations, multiple federal laws apply — increasing potential liability.

That’s why having a consumer protection attorney evaluate your situation is important.

Do Not Ignore the Problem

Some consumers hesitate because:

• “It’s only $300.”
• “The bank is huge.”
• “They already denied my claim.”
• “I don’t want to make things worse.”

But here’s the reality:

If you don’t act:

• The fraudulent balance may grow.
• Interest will accumulate.
• Your credit score may drop.
• The account may be sent to collections.
• You may face a lawsuit over a debt you did not create.

Early action preserves leverage.

What You Should Do Right Now

If you are dealing with unauthorized credit card charges:

1. Send written dispute notice immediately.
2. Keep copies of everything.
3. Save statements and communications.
4. Monitor your credit reports.
5. Contact a consumer protection attorney experienced in TILA claims.

The sooner you involve counsel, the more options you have.

Why Hire a TILA Attorney Instead of Handling It Yourself?

Banks have legal departments.
They have compliance teams.
They have litigation attorneys.

When disputes escalate, you should have representation too.

An experienced TILA attorney can:

• Analyze whether proper investigation occurred.
• Determine if timelines were violated.
• Identify credit reporting violations.
• File suit if necessary.
• Seek damages and attorney’s fees.

Most importantly, representation shifts the power dynamic.

Frequently Asked Questions About Unauthorized Credit Card Charges

How long do I have to dispute unauthorized charges?

You must send written notice within 60 days of the statement date showing the charge.

Does TILA apply in Texas and Alabama?

Yes. TILA is a federal law and applies in all states.

Free Case Evaluation for Texas & Alabama Consumers

If you are dealing with:

• Unauthorized credit card charges
• Fraudulent transactions
• Identity theft on your account
• A denied fraud claim
• Credit damage after a dispute

You may have a claim under the Truth in Lending Act.

I represent consumers in Texas and Alabama in federal consumer protection cases.

In many TILA cases:

• There are no upfront attorney’s fees.
• The creditor may be required to pay legal fees if we prevail.