Disputing Credit Card Charges FAQ

The FCPA applies to “open end” credit accounts, like credit cards, and revolving store charge accounts. The FCBA does not cover installment contracts (like car notes of home improvement contracts) or mortgages. People often buy cars, furniture, and major appliances on an installment basis, and repay personal loans in installments, as well.

Additionally, the FCBA only covers “billing errors.” Eligible billing errors include the following types of charges,

• unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
• charges that list the wrong date or amount;
• charges for goods and services you didn’t accept or that weren’t delivered as agreed;
• math errors;
• failure to post payments and other credits, like returns;
• failure to send bills to your current address — assuming the creditor has your change of address, in writing, at least 20 days before the billing period ends; and
• charges for which you ask for an explanation or written proof of purchase, along with a claimed error or request for clarification.

To take advantage of the law’s consumer protections, you must write to the creditor at the address given for “billing inquiries,” not the address for sending your payments, and include your name, address, account number, and a description of the billing error. Use our the sample letter provided by the FTC.

As with all consumer disputes, be sure to save a complete copy of the document and enclosures. Send the dispute by certified mail to the address specified by the credit card company. The right address fro credit card disputes is usually found on the reverse side of your credit card statements or on the company’s web site.

Send your letter so that it reaches the creditor within 60 days after the first bill with the error was mailed to you. Be sure to keep your return receipt and a copy of the letter with your other important credit documents.

Once you have made your dispute, the card issuer has 30 days to acknowledge your complaint and two billing cycles to complete its investigation. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after getting your letter.While your dispute is pending, the credit card company may not collect the disputed portion of the bill or report that amount to credit bureaus as late.

If the card company agrees with your dispute, it must correct the error and credit your account for any charges, fees or interest you have been charged. If it does not agree, it has to explain why and, upon your request, provide you with the documentation it relied on for its conclusion. Many consumers who write disputes to their credit card companies find those disputes to be more likely to succeed than their disputes with the merchant. We hope that this works for you.

• Want to see a list of the credit bureaus who keep data on you? Check out our Credit Bureau List.
• If you need help deciding which reports you need, you can read our article on Credit Reports to Order.
• Need help getting your credit report, see our article on How to Get Your Credit Report.

You may have a case under the Fair Credit Reporting Act if you notice the following things on your background report:

• Fraudulent identity theft accounts on your credit credit report.
• Someone else’s Information on your credit report.
• Paid accounts still showing a balance due.
• Reporting your accounts in good standing as charged off or in collections.
• Discharged debts still reporting as owed.
• Paid tax lies showing as still owed.
• Derogatory accounts more than 7 years old still on your report.
• Previously deleted accounts that have been reinserted on your report.
• Duplicate reporting of the same account.

If you would like help with one of these problems, call (888) 400-CREDIT | (888) 400-2733 or contact us through this site.