Virginia Attorney Explains How The Truth In Lending Act Protects Your Small Business From Fraud

Virginia Attorney Explains How The Truth In Lending Act Protects Your Small Business From Fraud

Small Business Is Not Immune From Fraud

The news is full of stories of small businesses and individuals harmed by online fraud and identity theft.  Most people associate fraud protection as only applicable to individuals but many of the same defenses are available to small business owners.  

The Truth in Lending Act

The Truth in Lending Act (TILA) provides protection for both consumers and small businesses. When it comes to business transactions, you are only liable for fraudulent activity up to $50. The small business owner needs to take the same steps as an individual consumer when fraudulent activity is suspected. 

  1. Immediately report the issue to the credit card company. 
  2. Dispute any unauthorized charges immediately.
  3. Follow up the dispute with a certified letter detailing your concerns and evidence as to why the transaction was fraudulent.

CONTACT OUR EXPERIENCED VIRGINIA SMALL BUSINESS ATTORNEYS

Contact us Today

Protect Your Small Business From Fraud

However, it is important to know that there are several circumstances unique where these protections may not apply to a small business owner:

  • You issue a credit card to more than 10 employees. In this case, your card issuer has the right to change its liability policy removing you from some of the TILA protections.
  • You allowed someone else to use the card. In this case, you will be liable if you allow someone else to use the card and he or she causes the unauthorized charges.
  • You fail to report the fraud. Any fraudulent activity reported more than 60 days after the unauthorized purchases were made may not be protected and you could be held liable.

Protecting your identity and credit is crucial when starting and/or maintaining a small business. 

If you have any questions about protecting your small business, please contact us today! 

Call us toll-free at 888-691-9319 or you can fill out this short form to get started. 


Related information

Small Business Representation in Virginia
The Threat of Business Identity Theft
The Ins and Outs of Small Business Credit

Areas We Serve

With an office near Town Center, Virginia Beach and a second location beside the Chesapeake courthouse, our team provides quality legal representation across the entire Hampton Roads Area.

  • Virginia Beach
  • Hampton
  • Chesapeake
  • Newport News
  • Norfolk
  • Yorktown
  • Portsmouth
  • Accomack County
  • Suffolk
  • Northampton County

Parks Zeigler, PLLC – Attorneys At Law

Parks Zeigler, PLLC – Attorneys At Law N/a
VIRGINIA BEACH OFFICE
Address
4768 Euclid Road,
Suite 103

Virginia Beach, Virginia 23462
Map & Directions
Phone
757-453-7744
CHESAPEAKE OFFICE
Address
524 Albemarle Drive,
Suite 200

Chesapeake, Virginia 23322
Map & Directions
Phone
757-312-0211
ELIZABETH CITY OFFICE
Address
200 N. Water Street,
Suite 2A

Elizabeth City, NC 27909
Map & Directions
Phone
252-679-8880