It can happen to anyone. You find a mistake on your credit card bill. Do you know what to do if this happens to you? If you discover a billing error from one of your creditors there is something you can do about it. The provisions of the Fair Credit Billing Act can help you resolve any errors and disputes you may have with your creditors. Its important to keep in mind it only applies to revolving credit accounts which are things like credit cards, department store cards, and overdraft protection for your checking account. Always review your credit card statements as soon as you receive them each month. This is the best way to protect yourself against identity theft plus if you find a mistake you can work to get it fixed. Here is a list of some common errors you might find:
- A duplicate charge
- An incorrect credit of your payment
- An incorrect charge amount
- A charge for something you didn’t purchase
What To Do If You Find Billing Errors
When you find a billing error on your statement you have 60 days after receiving the statement to report a billing error to the creditor. You should write a letter and sent it to the address your creditor lists for billing inquiries. This address is printed on your statement. Its not a bad idea to send the letter certified with return receipt requested, that way you have proof the letter was received. The letter should include the following:
- Your name
- Your address
- The account number
- A specific description of the billing error
- Copies of receipts and other documentation supporting your claim (keep the originals in your files with a copy of the letter)
During The Dispute
While the billing error is being investigated you do not have to pay what your disputing. However, you are responsible for all the other portions of your statement that you are not disputing. Your card issuer is legally obligated to acknowledge your letter within thirty days, and must either correct the error or explain it to you in writing within two billing cycles. Be patient and don’t expect immediate results. The creditor has two billing cycles, which is about 90 days, to resolve the issue. This is another reason you should look at your statements closely each month. If the creditor corrects the error and your not looking at your statements then you won’t even know the error has been corrected.
If The Creditor Disagrees
Just because you follow all the steps doesn’t mean the creditor is going to agree with you. The creditor might respond to you in writing that the “error” is not actually an error and the charge is correct. If this happens you have 10 days to tell the creditor in writing about the dispute and that you disagree with their findings. You can also state that you can refuse to pay the amount in question. The creditor may begin the collection process and will probably report any delinquency to the credit bureau. If this happens to you, make sure your credit report reflects that the delinquency is due to a billing dispute.
Summary
It’s a good feeling to know that we have rights that protect us against billing errors and there are steps we can follow to hopefully get the errors resolved. The very first step to take is to review your statements. If you don’t review your statements each month then you may never know about the billing error.
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