How to Correct Errors on Your Credit Card Statement

By State and Federal Law, you have the right to object to credit card billing errors. These errors may then be corrected.

Billing Errors

Credit Card Billing Errors include:

An unauthorized charge on your statement
A charge for goods and services never received, or that you never accepted
Your payments that have not been credited to your account
Errors in the bill that are mathematical

You also have the right to question charges that you are not sure you made. You have the right to ask for proof of these charges.

How to Begin the Process of Correcting Errors

Within 60 days of receiving the credit card statement with the billing error, write to your credit card company. Your credit card statement will designate an address for billing errors and questions.
Include the following in your letter:

·         Name
·         Account Number
·         Date of error
·         Dollar amount of error
·         Explanation of the error and why it is incorrect

When you mail the letter, request a certified mail return receipt, so that you’re ensured proof of delivery. Keep a copy of the letter in your personal file.

In The Meantime, Am I Required to Pay the Amount in Dispute?

You are not required to pay the amount in question during the investigation. You may also withhold paying any associated finance charges or any interest payment that is associated with the disputed amount. However, you must pay any amounts that are not in question. Pay these as you normally would, and on time.

What is the Credit Card Company Required to Do, Once I’ve Sent My Letter Disputing Errors?

By law, your credit card company must acknowledge that they’ve received your letter, within thirty days of receipt.
Within two billing cycles (or 90 days), the credit card company must then investigate your dispute of the charges in question.
Two things should happen during this time: the credit card company should either correct the disputed amount, or they should provide an answer to you in writing stating why the disputed amount is actually correct.
If you requested a proof of purchase as part of your initial dispute, the credit card company must provide this at this time.

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What If My Credit Card Company Doesn’t Follow These Procedures as Outlined?

If the credit card company does not follow these procedures, they are not legally able to collect your disputed amount, or any interest associated with that amount. By law, the credit card company is not able to close your account solely on the basis of your filing a dispute. If the credit card company denies your dispute, or if your dispute involves goods and services that were defective or were never delivered, you may be able to file a claim.

What Can My Credit Card Company Do if I Do Not Pay the Disputed Amount?

The credit card company may begin the collection process. They may turn the disputed amount over to a collection agency or begin proceedings to sue you. If a collection agency contacts you, you have the right to send them a letter. Explain why you think you do not owe the money in question. Insist that the collection agency stop contacting you. The collection agency must stop contacting you if you’ve sent a letter asking them not to contact you again. Always use certified mail, with a return receipt requested, when sending these letters. Keep copies of all these letters in your files.

What if My Credit Card Company Files Suit Against Me?

Get legal help in this case. Respond to the lawsuit, appear in court if needed, and give your explanation as to why you think the original disputed amount is incorrect.

Will My Credit Report Be Affected By My Dispute?

Your credit report should not be affected unless you indeed owe the original amount disputed, or the credit card company wins their suit against you in court.

What if My Credit Card Dispute Involves Goods or Services that were Defective or Never Delivered?

If you’ve already paid for such goods and services, and the merchant will not correct the problem or refund your money, you have the right to file a dispute with the credit card company. Begin by writing to the credit card company. State that you’ve tried to solve the problem with the original merchant. Since the merchant refused to resolve the problem, tell the credit card company that you are withholding payment until the problem is fixed. For more information on credit card billing disputes or billing of defective goods and services, see the Federal Trade Commission’s Facts for Consumers at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm

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