Disputing Charges on Your Credit Card

There are many possible reasons why you might want to dispute the charges to your credit card or credit cards.  The good news is that there is something called the Fair Credit Billing Act (FCBA), that’s the federal law protecting the rights of consumers in these matters.  If you are feeling very motivated and really want to know all the ins and outs of this act, you can go the web site for the Federal Trade Commission and read more.

http://www.ftc.gov/bcp/conline/pubs/credit/fcb.shtm

It’s actually pretty interesting and there’s nothing so empowering as having some real knowledge in these kinds of situations.  Credit card companies already make enough of a profit, don’t help them out by paying for something you don’t have to.  Credit card services are your services.  So, if the credit card company’s telephone agent says something that isn’t quite right, you will know it and be fully able to set them straight.  (Wouldn’t that be a refreshing change?)  The bad news is that sometimes, sorting these little errors out can take some time and patience on your part.

Here is a short list of the typical reasons for disputes:

You bought something and it’s just no good.  Maybe it broke right away or it’s unsatisfactory in some other way, not performing as promised.  Plain and simple, your purchase just isn’t living up to it’s buzz.

Maybe you just never bought the product, plain and simple.  Someone got a hold of your credit card and is now out there shopping till you drop.  (A few years ago, someone bought several Lobster-Grams using my card along with several bouquets of flowers.  Talk about playing the field. Wow!)

You bought something, mail order or used your credit card online and the goods never arrived.  You sure don’t want to pay for something if you never even got it.

The old double billing.  In a nutshell, you bought one gizmo; they accidentally charged you for two or three.

Here’s the skinny on how the FCBA says you should handle an error correction with a credit card company.  You have to write a letter to the special division in their company that handles disputes; usually it will be called “billing inquiries.”  You will find that information on your bill somewhere.  So, bust out your magnifying glass and find that address.  It’s important that you send it to that department and not the address where you send you credit card payments because if you do that, nothing will happen.

Your letter must include certain basic information to avoid a busload of confusion; your name exactly as it appears on your credit card, your address, credit card number and expiration date, and the exact nature of the error.  You should also include copies of any supporting documents you may have; things like receipts, cancelled checks, packing slips, purchase orders, anything relevant.

Use the letter to clearly and methodically state your case, not as a rage against the machine.  State the dollar amount in question, the exact reason why it’s inaccurate, and a request that the company look into the matter and follow through by correcting the mistake and crediting your credit card account for the mistaken charges as well as any interest and fees associated with the error.  Itemize the list of your supporting documents then mail it off and wait.

While the investigation is underway, you do not have to pay the disputed amount.  You of course, are obliged to pay any other money you owe including any credit card interest, finance charges or fees not associated with your dispute.  As long as you pay the other portion of your bill, you won’t have any problems with the credit reporting bureaus.  Due to another federal law, the Equal Credit Opportunity Act, you cannot be penalized for disputing an error in your bill.  The company is able to report that you have challenged a bill but this fact on its own is not enough to keep you from being granted in the future.