Credit Billing and Disputes

Credit Billing and Disputes

The Fair Credit Billing Act applies to credit card and charge
accounts and to overdraft checking. It can be used for:

o billing errors;

o unauthorized use of your account;

o goods or services charged to your account, but not received or
not provided as promised; and

o charges for which you request an explanation or written proof of
purchase.

Protect Your Rights

o Write to the creditor or card issuer within 60 days after the
first bill containing the disputed charge is mailed to you. (Even
if more than 60 days have passed since you were billed for the
item, you still might be able to dispute the charge if you only
recently found out about the problem.)

o Send your letter to the address provided on the bill; do not
send the letter with your payment.

o In your letter, give your name and account number, the date and
amount of the charge disputed, and a complete explanation of why
you are disputing the charge. Be specific.

o To be sure your letter is received, and so you will have a
record, you might wish to send it by certified mail, with a return
receipt requested.

If you follow these requirements, the creditor or card issuer must
acknowledge your letter in writing within 30 days after it is
received and conduct an investigation within 90 days.

While the bill is being disputed and investigated, you need not pay
the amount in dispute. The creditor or card issuer may not take
action to collect the disputed amount, including reporting the
amount as delinquent, and may not close or restrict your account.

If there was an error or you do not owe the amount, the creditor or
card issuer must credit your account and remove any finance charges
or late fees relating to the amount not owed. For any amount still
owed, you have the right to an explanation and copies of documents
proving you owe the money.

If the bill is correct, you must be told in writing what you owe
and why. You will owe the amount disputed, plus any finance
charges. You may ask for copies of relevant documents.