Credit Card Disputes And Billing Errors
Starting a credit card dispute or reporting a billing error is something most everyone will have to do at some point. It is often said that you should report an errors you find on your credit report or monthly card statement right away. But what exactly constitutes a billing error? Under what circumstances can you dispute a charge?
When to File a Dispute
- You see a purchase you did not make or authorize
- You see charges for goods or services you did not receive or refused to accept
- Charges you do not remember making and you want proof the charge was made
When to Report an Error
- Payments made that were not credited to your account
- Bills with mathematical errors
- Inaccurate information such as your name, address, or any identifying information that will cause the account to be incorrectly reported to the credit bureaus.
How do I correct errors?
You have 60 days from the date of the statement with the billing error, to write to your credit card company.
Send your letter to the address listed on your credit card statement for billing errors and inquiries. Include your name, account number, and the date and amount of the error. Explain in your letter why the billing is wrong. Request proof of purchase if that is the issue.
Send your letter certified mail return receipt requested for proof of delivery.
For errors on your credit report, these reports can be made at any time. You should be checking your report at least once per year to ensure accuracy.
Do I have to pay the disputed amount?
No. You can withhold payment of the amount in dispute and the finance charge on that amount until the card company investigates the dispute. Interest charges will also be on hold during the dispute.
You must pay the amounts that are not in dispute.
What does the credit card company have to do?
They must acknowledge receipt of your letter within 30 days. Within 90 days, or two billing cycles, they must investigate your dispute. They must correct their mistake or explain to you in writing why the bill is correct. If you request proof of a purchase, they must provide it to you.
If the credit card company doesn’t follow these procedures, they cannot collect the amount you disputed. They also cannot charge you interest on the amount in dispute. The credit card company cannot close your account just because you file a dispute.
What if they don’t correct the error?
If your claim is denied, or it is a dispute over merchandise or services that are defective or not delivered, you may be able to file a claim under Claims and Defenses.
Can the credit card company take action against me if I refuse to pay?
They can begin normal collection activities, such as referring the disputed amount to a collection agency, or suing you in court.
If you are contacted by a collection agency, send them a letter explaining why you feel you do not owe the money. A collection agency must stop contacting you if you send them a letter telling them not to contact you again. Send all letters by certified mail, return receipt requested, and keep a copy of the letter for your records.
If they file suit against you, you should seek legal assistance. If you file an answer to the lawsuit, you can appear in court and explain why you feel the billing is wrong.
The credit card company can only report you to a credit reporting agency if you actually owe the amount you disputed, or they sue you in court and win.
