It's probably happened to you at least once: You review your credit card statement and spot a charge you know you didn't make or that doesn't match the receipt you saved. Or maybe you used your card to order something that never arrived. In the meantime, though, the company has charged your credit card for the cost. You can check to see if your card issuer offers a way to handle the dispute online. Often that's the simplest and quickest way to resolve a matter. But if that process fails or is unavailable, the Federal Deposit Insurance Corporation (FDIC) urges you to follow the process for filing a credit card complaint. That way, your rights are preserved and, if you prevail, your money is returned to you. Here's a rundown of what your consumer rights are regarding billing errors — just in case your credit card company disagrees with your claim.
Fixing Credit Card Billing Errors
The Fair Credit Billing Act is one of the primary laws that helps protect you from financial damages related to credit card billing mistakes. This regulation covers a broad category of billing mistakes, from unauthorized charges to simple math errors, aimed at getting your money back when you're inappropriately charged.
A second regulation — the Mail, Internet or Telephone Order Merchandise Rule — can also protect you in cases where your credit card was charged for items you never received.
When Mistakes Happen: What You Need To Do
If you spot a billing mistake or are disputing a charge, be sure to report the matter to your credit issuer as soon as possible — but at most, within 60 days of the date when the erroneous bill was first made available to you. Otherwise, you may have to pay for the charges and forfeit any credits.
So report errors as soon as you notice them, then take the following steps:
- Contact the merchant. If there's a charge on your card for items you never received, try to work with the seller to find out what happened. See if you can get the products you ordered or have the charge removed.
- Send your dispute request in writing. Mail it to the address your credit card company lists for "billing inquiries." It may be different from the one you use for mailing your payments.
- Be specific. Include your name, address, credit card account number, vendor name and date for the item and explanation of the error. For example, you might say that the item you ordered and paid for wasn't delivered. In that case, include a copy of your receipt and the promised delivery date. The Federal Trade Commission (FTC) offers a template for writing these letters at www.consumer.ftc.gov; search for "Sample Letter for Disputing Billing Errors."
- Track your request. Send your dispute letter by certified mail with a return receipt requested. Be sure to keep a copy of the letter for your files.
Highlights About Your Rights
The Mail, Internet or Telephone Order Merchandise Rule helps protect you against merchants who don't ship items to you in a reasonable amount of time. Sellers who significantly delay your order may be required to let you cancel your order and then must issue you a refund. The FTC details your rights under this law at consumer.ftc.gov.
In addition, the following applies to all types of credit card billing disputes:
- You don't have to pay while you wait. While the card issuer is investigating the billing mistake, you're not required to pay the disputed amount, however be sure to pay the rest of your bill.
- Legal and other action is put on hold. During the billing dispute investigation, the credit card company can't threaten to take you to court, damage your credit rating, increase your required payments, freeze or close your account. The company can only report to the credit reporting agencies that you're challenging a bill.
- Card issuers must meet deadlines. The credit card company must acknowledge your dispute request within 30 days. Also, the card company has a deadline to resolve the dispute within two billing cycles (no more than 90 days) after getting your dispute-request letter.
- If you're right, you're in the clear. If an investigation confirms that the billing was a mistake, your credit card company is required to notify you about how they'll correct the error. The company is also legally required to remove from your account any finance charges, late fees or other costs related to the mistake.
- If they're right, they'll explain why. If the error ends up being correct (not an error after all), the credit card issuer has to give you a written explanation of how much you owe. The company must also give you copies of documents proving that you owe the money, if you request them.
- You can appeal — but make it quick. If you don't agree with the credit card issuer's findings, you have 10 days from the time you receive the report to file an appeal in writing. Your credit report can still note that you're appealing the delinquent charge.
If you continue to have trouble with a credit card billing dispute after going through these steps, contact the FTC at consumer.ftc.gov. You could, of course, hire an attorney to help resolve the claim. But in most cases that would only be financially worthwhile if the amount in dispute is significant.
