How to Fix a Billing Mistake

With credit fraud running rampant these days, it pays to check your billing statements every month for mistakes or fraudulent charges. If you spot an error on a credit-card bill, follow these procedures, which reflect the guidelines of the Fair Credit Billing Act.

Difficulty: Moderately challenging

Instructions

Credit-card accounts

1. Write to the creditor to inform it of the error within 60 days of receiving the bill. Include your name, address, account number and copies of the relevant sales receipts or documentation.

2. Make a copy of the letter for your files and send it via certified mail to the billing inquiries department. Request a return receipt from the post office so you have proof that the creditor received your letter.

3. Pay the undisputed amount plus the interest for the undisputed amount.

4. Expect the creditor to either fix the error or respond to your letter within 30 days. The creditor must resolve the dispute within two billing cycles (or 90 days) of receiving your letter.

5. Understand that the creditor cannot take legal action against you, threaten your credit rating or report your account as delinquent while the error is in dispute. The creditor can report to credit-rating agencies that you are disputing a bill.

6. If the creditor agrees that it was an error, it must let you know this in writing and reverse the charges related to the error, including any finance charges and late fees.

7. If the creditor decides there was no error, it must inform you of that decision in writing and tell you how much you owe and why. You will be expected to pay any finance charges that accrued during the dispute.

8. If you want to continue disputing the charge, write to the creditor within 10 days. Ask it to send you documentation that supports the decision, including a sales receipt from the original vendor. The creditor is allowed to begin collection procedures. It can report you to credit bureaus, but must indicate that you are disputing the claim and must let you know that it is reporting you.

9. If a creditor fails to abide by the Fair Credit Billing Act, you do not need to repay the disputed amount. You can also sue the creditor for breaking the law.

Other bills

10. Point out the mistake to the billing party--say, a merchant or contractor--and ask the biller to fix it. Supply a copy of a price quote or agreement if one exists.

11. If the biller refuses to fix the error, put the request in writing and mail it to the business's owner or manager via certified mail. Keep a copy for your files.

12. If the biller still refuses to fix the error, file a complaint with the Better Business Bureau (www.bbb.org), which will help you resolve the dispute. Supply documentation of your efforts to fix the error. The Better Business Bureau will not handle price disputes unless they involve misrepresentation by the seller.

13. If the biller belongs to a guild or union, file a complaint with that organization as well. Make sure to include the biller's membership number when you file the complaint.

Tips & Warnings

• The Fair Credit Billing Act does not cover disputes over the price of goods or services unless certain restrictions apply. Consult the Federal Trade Commission.
• Save credit-card receipts so you have evidence of the amount you agreed to pay.
• When you make a complaint, remind the creditor or vendor that you are a good customer. Many companies will write off disputes under $50 to maintain good customer relations.
• For one-time purchases, such as services provided by a carpenter or mechanic, always get an itemized quote in writing before any work starts, to avoid future disputes over the bill.
• If you are a victim of fraud, deception or unfair business practices, file a complaint with the Federal Trade Commission. Call (800) FTCHELP or go to www.ftc.gov to file a complaint online.