How to Dispute an Automatic Credit Card Charge
When purchasing goods and services via the Internet, you will often be required to provide a credit card number even if you are not planning to use your credit card as payment. Scams abound on the Internet, and it is not uncommon to hear of someone whose credit card was "accidentally" charged a fee the individual either did not approve or was not aware of. Many of these companies make a large profit through recurring automatic credit card charges, and consumers are unaware the charges are occurring. If you notice unauthorized recurring charges on your credit card bill, dispute them immediately to prevent the incident from being repeated.
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Instructions
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Check to make sure your dispute is valid. Study your original purchase agreement--if the charge is coming from a company you know and have done business with--for any mention of an automatic credit card charge. If you signed an agreement to be charged, or made a purchase online and verified that you "understood" the terms of the agreement, you may not have a valid dispute.
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Attempt to resolve the issue with the company that performed the automatic credit card charge. You may be able to have the charges reimbursed without ever contacting your credit card company. The Fair Credit Billing Act permits you to request a written explanation of the charges if you feel you were billed in error. This is useful in clearing up automatic charges that were levied accidentally.
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Contact your credit card company via telephone and explain the unauthorized charge. Some credit card companies will remove the charge without issue, but others may require more verification. Ask for the direct address to the department that handles errors to ensure that your dispute arrives at the correct location.
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Write a formal dispute of the charge in question. Include the date the charge occurred, the amount of the charge and the fact that the charge was an "unauthorized transaction." According to USA Today, consumers who dispute charges as "unauthorized" are taken more seriously.
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Wait for the credit card company to investigate your dispute. An investigation into your claim may take as long as 270 days. During the period of time that the investigation is going on, however, you will not be held liable for making payments on the credit card charge and the charge will accrue no interest.
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File a complaint with your state attorney general's office if you feel the dispute is not being handled properly. A telephone call to your creditor from the attorney general can quickly increase your odds of having your money refunded.
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Tips & Warnings
Check your credit card statement closely every month for unauthorized charges. If the charges are small, you may easily miss them and not be able to dispute them within the allotted time frame.
You must dispute an automatic credit card charge that is unauthorized within 60 days of the charge occurring, otherwise you can be held legally liable for the full amount of the debt.
If your credit card company investigates your dispute and sides with the merchant who placed the charge on your account, you will be expected to pay the disputed sum plus interest from the day the charge was made.
