How to Dispute High Credit Card Finance Charges
You could be losing money if you have an excessive amount of finance charges billing to your credit card account every month. There is a way to dispute these charges. You will need to go through the proper steps to get it completed. When you have high credit card finance charges more of your monthly payment goes toward the charges every month. This can make it more difficult to pay off your credit card balance.
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Instructions
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Review your monthly statement. Take a look at your credit card statement to see how much you are being charged each month for finance charges. You may want to review the interest rate you are being charged on your outstanding balance. If your finance charges are high, chances are your interest rate is high as well. To dispute the high credit card finance charges you must first determine if the finance charges on your credit card are accurate.
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Calculate how much you are being charged in finance charges. Get all of the facts about your credit card including the balance, interest rate and the number of days in the billing cycle. This information will help you determine how much you are being charged in finance charges. A balance of $5,000 with an interest rate of 15 percent will have finance charges in the amount of $62.49 for the first month. As the balance decreases the amount you are charged in finance charges will decrease as well. The amount of finance charges that you calculate will vary depending on the method your credit card company uses to calculate finance charges.
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Dispute the amount of your finance charges. If it turns out you are being charged an excessive amount of finance charges, which is not a reflection of your interest rate, you should send in a dispute. On the back of your credit card there should be an address to send in a written dispute. Your credit card statement should have the dispute address as well. Always send in disputes as soon as possible. You have 60 days from the date of the statement in which the charges appear to submit a dispute. This type of dispute would be classified as a mathematical error.
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Ask for a new interest rate. If the amounts you are being charged in finance charges are correct, you will not be able to dispute or challenge them. Your best plan of action is to ask your credit card company for a lower rate of interest. Once you receive a lower interest rate, the amount you are charged monthly for finance charges will decrease as well. If you have an excellent pay history, you stand a better chance of receiving a lower rate of interest.
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