How to dispute an error in a credit card bill?

Don't you hate it when you buy something, bring it home, and find out that the item is damaged? Or when you have been double charged for your purchase? To make matters worse, the merchant refuses to refund you the charge. But don’t worry. If you made the purchase with a credit card, your issuer may be able to help you! 

Making purchases with a credit card is very common. It is difficult to find a merchant that doesn’t accept plastics. At the end of the billing period your credit card issuer will send you a bill where you can find your charges and amount of debt. 

Errors in billing statements happen from time to time, so it makes sense to check that your credit card bill is correct. If you find an unauthorized transaction, for example a charge for an item you returned, you can dispute the error with your card issuer. 

Under the Fair Credit Billing Act, you have the right to dispute billing errors such as:
•    unauthorized charges. By law, liability for unauthorized credit card use is limited to $50;
•    charges listing the wrong price or date; 
•    charges for items you didn't accept or receive; 
•    mathematical errors; 
•    payments you made that were not credited to your account; 
•    failure to send bills to your current address - if the creditor receives your change of address, in writing, at least 20 days before the billing cycle ends; 
•    charges where you have requested an explanation or written proof of purchase. 

Keep in mind that the Fair Credit Billing Act doesn't cover disputes concerning the price of goods or services (unless certain restrictions apply), charges for items you don’t want to have anymore or charges for items the store refuses to take back. 

If you want to correct billing errors, follow these steps: 
1. Inform your creditor about the error within 60 days after getting the billing statement. It is not enough just to call your creditor; you need to send them a letter. Include your credit card account number, the closing date of the bill on which the disputed charge appears, a description of the disputed item and why you think that the bill is incorrect. Send your letter by certified mail, return receipt requested, to the credit company at the address for "billing inquiries."

2. Pay the correct part of the bill: the undisputed amount plus necessary fees and interest charges. Even though you are disputing an item, it is important to maintain all other payments.

3. The credit company has to respond to your claim within thirty days after receiving. Within 90 days, or two billing cycles, they must investigate your dispute and send you an answer in writing. If you request proof of a purchase, they must provide it to you.

4. You may withhold payment on the disputed amount (and related charges) during the investigation. The creditor cannot take actions against you while the error is in dispute. It is illegal to report delinquencies or close your account. 

5. After you have received the letter from your credit company, you can either agree with their decision or continue disputing the error. If you choose the second option, write the creditor a letter within 10 days. Ask them to tell you what information they used to investigate the claim. Keep in mind that at this point the lender can start collection proceedings and report you to the credit bureaus, but it must inform the bureau that you are refusing to pay the bill because of a dispute.

You can sue a creditor who violates the FCBA. If you win the case, you may be awarded damages, plus twice the amount of any finance charge - as long as the sum is between $100 and $1,000. The court may also order the credit company to pay your attorney's fees and costs.

Don't ignore billing errors in the hopes that they will disappear automatically. The process of disputing unauthorized transactions is not as difficult as it may seem. Protect your rights, or you can end up paying for items you didn’t buy.