How to Dispute Credit Card Bills

Federal law covers credit card disputes.

The Fair Credit Billing Act, or FCBA, provides protections and a protocol for consumers who believe their credit card bills are in error. According to the Federal Trade Commission, or FTC, FCBA procedures pertain to billing error disputes, including unauthorized charges, charges for good and services never received, and charges listed with the wrong date or amount. The FCBA prohibits creditors from providing negative reports to credit reporting agencies while your bill is under dispute.

Instructions

1. Write to your creditor describing in detail the billing error. Include your name, address and account number. The FTC advises sending your dispute to the address designated for billing errors, not the address for payments. You can get this address by calling the number on the back of your card.

2. Send your letter so that your creditor gets it within 60 days after you received the first bill containing the error.

3. Use a service, such as certified mail, to send your letter so you have proof of receipt. The FTC suggests sending the creditor copies, not original documents. Keep a copy of the correspondence.

4. Follow up with your creditor. It is required by the FCBA to acknowledge your dispute in writing within 30 days of receiving it, and to resolve the dispute within two billing cycles.

5. Withhold payment of the disputed amount while the creditor investigates your claim. The FTC notes that while this amount can still be deducted from your credit limit, there can be no collection activity in reference to it. Pay the other charges on your bill as usual.

Tips & Warnings

• The FTC notes that issues with the "quality" of a good or a service do not qualify under the dispute process. Only genuine billing errors can be disputed under the FCBA.

References

• Federal Trade Commission (FTC): Fair Credit Billing