Disputing a Credit Card Bill

The Fair Credit Billing Act covers purchases when the consumer has used “open end” credit accounts such as credit cards and “revolving charge accounts”, such as department store charge accounts. The law does not apply to installment contracts such as car loans and personal loans.

The Fair Credit Billing Act provides consumers with the right to dispute credit card charges for unauthorized charges*, charges for merchandise or services you did not receive as agreed or you did not accept charges that have the wrong amount charged and/or contain the wrong date. In addition, you can dispute your credit card billing if the creditor failed to post payments and credits (return goods) to your account, the creditor failed to send your credit card statement (bill) to your correct address, provided that you gave the address or new address to the creditor at least 20 days before the billing period ended; and for charges for which you requested an explanation or for proof of purchase along with a claimed error, including a request for clarification.

In order to avail yourself of the protections provide by the Fair Credit Billing Act you must do the following:

• Mail a written notice, a letter that states what you are disputing, to the creditor (the credit card company) to the address listed for billing inquires listed on the back of the credit card statement. (The billing inquiries address is usually different than the address where you send your payment)
• Your letter must arrive at the creditor's address within 60 days after the first bill containing the error was mailed to you.
• Send your letter by certified mail, return receipt, or by a similar method which provides proof that the creditor received your letter and supporting documentation. Always attach copies (not originals) of all documents, including sales slips, proof of payment, and any other documents that support or proves your position.
• Keep a copy of everything you mailed to the creditor.

The Fair Credit Billing Act requires that the creditor, after receiving your complaint, must acknowledge receipt within 30 days after receipt of your complaint unless the matter has been resolved. The creditor has two billing cycles or 90 days after receiving your letter to investigate and resolve the dispute. You may withhold payment of the disputed amount and related charges during the investigation, but you must pay the undisputed amount of the bill.

* Federal law limits your financial liability for unauthorized charges to $50.

For more information on the Fair Credit Billing Act, visit the Federal Trade Commission website at www.ftc.gov