How to Dispute a Credit Card Billing Error
Writing a letter to dispute a credit card billing error is the best way to protect your rights under the Fair Credit Billing Act, a federal law that protects consumers against unfair credit billing practices. Sending your letter via certified mail will give you a timestamp in case you ever need to prove that you made your dispute in time. The FCBA allows you to dispute a few types of billing errors. The list includes:
Billing errors Unauthorized charges Charges for goods or services you didn’t receive Charges for the wrong amount Math errors on your credit card statements Payments or credits that didn’t post to your account.
You can also dispute bills that weren’t mailed to you, unless you failed to notify your credit card issuer of changes to your address at least 20 days before the end of the billing cycle.
Timeframe for Credit Card Disputes
You must send your dispute letter within 60 days that the billing statement containing the error was mailed to you. Your credit card issuer is not legally required to resolve billing errors that you dispute after these 60 days and you may be on the hook for those charges, despite the fact that they were inaccurate. Once the credit card issuer receives your dispute letter, they’re required to respond in writing within 30 days and resolve the dispute within two billing cycles of receiving your letter. In the meantime, you’re not required to pay anything on the disputed charges while the credit card issuer investigates, but you do have to make any other required minimum payments and finance charges. Missing your required minimum payment will lead to a payment, a late fee, and possibly a late notice added to your credit report.
What to Put in Your Credit Card Dispute Letter
The dispute letter can be simple - an example is included below. In your letter, include the transaction or transactions that you’re disputing and the reason you’re making the dispute. Send copies of any proof, e.g. a receipt, that support your dispute. When you’re ready to mail off your billing error dispute letter, check your credit card statement for the credit card issuer’s address for correspondence. Note that this address is usually different from the address where you mail your payment. Below is a sample letter you can use for credit card billing disputes (not for credit report errors, which require a different kind of letter). Be sure to customize the letter with your personal information, including your credit card account number or at least the last four digits of the account number. Keep a copy of the letter with the original receipts or other proof for your records. Your Name Address City, State Zip Creditor’s Name Address City, State Zip Re: Account Number Dear Sir or Madam: This letter is to dispute a billing error on my account in the amount of $__________. The amount is inaccurate because (reason for dispute).
I have enclosed copies of (document) to support my claim.
Please correct this billing error as soon as possible.
Sincerely,
Your Name
