Lesson 5.4: Consumer Rights & Legal Remedies

Key ideas from the lesson

• Escalate in order, and document everything along the way.
• Step 1 — the business (or, for a card charge, the card issuer). Explain the problem, name the remedy you want, keep records. For a billing error or unauthorized charge on a credit card, federal law gives you 60 days from the statement date to dispute it in writing; you generally don't have to pay the disputed amount while the issuer investigates, and if you win, the charge is reversed — a chargeback.
• Step 2 — a consumer-protection complaint. A bank, card or lender goes to the CFPB. A store, seller or contractor goes to the NY Attorney General or the NY Department of State. You can also report scams and bad practices to the FTC. A complaint puts your case on the record — but the office isn't a judge.
• Step 3 — Small Claims Court, where a judge can order the business to pay. New York's limits: $10,000 in New York City, $5,000 in other city courts, $3,000 in town and village courts.
• Before court, send a short demand letter. It's often what finally gets the refund.

Why this helps

See You in Small Claims teaches an escalation ladder, and these are the ladder's actual rungs: the courts' own help center for the final step, and the CFPB's portal for the middle one. Between them they cover almost every “the business won't fix it” situation in the lesson.