The federal Fair Credit Billing Act gives consumers the right to withhold payment on unauthorized credit card charges, charges for goods and services you didn't accept or weren't delivered as agreed and certain other errors on your bill. To take advantage of this law, you must write to the creditor at the address given for "billing inquiries" and make sure it reaches the creditor within 60 days after the first bill containing the error was mailed to you.

Send your letter by certified mail, return receipt requested. The creditor must acknowledge your complaint in writing within 30 days after receiving it and resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

You can withhold payment, and related charges, on the disputed amount during the investigation, but you must pay the rest of your bill.

Federal law limits your responsibility for unauthorized charges to $50, but most credit card companies waive the $50 charge, especially if you notify them by phone as soon as you notice an unauthorized charge.

For details, see http://www.ftc.gov/bcp/conline/pubs/credit/fcb.htm

Note: This law does not apply to disputes about the quality of goods and services purchased by credit card. However, other state and federal laws may protect you in these cases. To learn how, see the next FAQ.