How to Dispute Fraudulent Credit Card Charges
The use of credit cards is part of everyday American life. Consumers use credit cards for everything from grocery shopping and online purchases, to booking a hotel or paying a bill. Many find credit cards to be a true convenience. The prevalent use of credit cards also creates opportunities for criminals to gain access to your credit card number and make unauthorized charges. If you find fraudulent charges on your credit card, there are steps you can take to have them removed.
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Instructions
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Claim your rights. The Fair Credit Billing Act (FCBA) gives consumers the right to challenge erroneous charges on their credit card statement. Credit card issuers are required by law to investigate your dispute and resolve the issue. You are not required to pay the disputed amount while the charge is in dispute and the credit issuer is prohibited from reporting the unpaid bill as delinquent to the credit bureaus.
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Write a letter of dispute to your credit card issuer. Include your account number and the specific item that you're disputing. You must send this letter within 60 days of receiving the billing statement that contains the error. Making a dispute by phone does not protect your rights under the FCBA.
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Mail the letter certified mail, return receipt requested so that you have proof that the letter was sent and received. Include any supporting documentation, if applicable. Send the letter to the address the credit issuer designates for billing inquiries. Do not send it to the address where payments are sent unless directed otherwise by the credit card company.
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Wait to hear back from the credit issuer. By law, the credit issuer is required to respond within 30 days to let you know your dispute was received. Within two billing cycles but no later than 90 days from the date your dispute was received, the credit issuer must reverse the charges, including any related late fees or miscellaneous fees, if the charges are erroneous.
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Read the new billing statement that the credit issuer sends to you, as required by law. Make sure the fraudulent charges have been removed and that your balance is correct. You may also want to insist on a new credit card number, since the previous one has been compromised.
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Tips & Warnings
The Fair Credit Billing Act (FCBA) applies to open-ended accounts, such as credit cards and lines of credit, but it doesn't apply to closed-ended loans like car loans and mortgages.
Order a copy of your credit report to check for signs of identity theft. Under the Fair Credit Reporting Act (FCRA), consumers are entitled to one free copy of their credit report each year from the three major bureaus: Experian, Equifax and TransUnion. You can order the report at the bureau's website, by phone or mail.
Never give your credit card number to solicitors who try to sell items on the phone.
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