Credit Card Glossary
Mistakes on Your Credit Card Bill
Even credit card companies make mistakes. The Fair Credit Billing Act applies to credit card and charge accounts and to overdraft checking (but not to checks or debit cards). You can use this act to defend against billing errors, unauthorized use of your account, goods or services charged to your account but not received or not provided as promised, and charges for which you request an explanation or written proof of purchase
If you should happen to find a mistake on your bill here are some steps that you can take to have the error corrected.
• Write to your card issuer or creditor within 60 days after the bill with the error on it is mailed to you. However the 60 days is not a hard and fast rule. You may still be able to dispute the charge after 60 days if you have an explanation for why you recently just learned about it.
• In a letter of dispute, give your name, account number, the date and amount of the disputed charge and a complete explanation of why you are disputing the charge.
• Send your letter to the address provided on the credit card bill—do not send the letter with your payment or it will take ages for it to reach the right department. The best thing to do is send the letter by certified mail with a return receipt requested
• If you follow the suggestions outlined above, the creditor or card issuer must acknowledge your letter in writing within 30 days after receipt and must conduct an investigation within 90 days. While the bill is being investigated, you don’t have to pay the amount in dispute. (The creditor or card issuer is also not allowed to take action to collect the disputed amount, report the amount as delinquent or close or restrict your account while the matter is being investigated.)
• If it is determined that there was an error or that you don’t owe the amount you’re being held responsible for, the card issuer must credit your account and remove any finance charges or late fees relating to the amount not owed. For any amount still owed, you have the right to an explanation and to copies of documents that prove you owe the money.
• If the bill is correct, you must be told in writing what you owe and why. You will owe the amount disputed plus any finance charges.