When a credit card bill looks wrong, it helps to act quickly. In the United States, the Fair Credit Billing Act gives cardholders the right to dispute certain billing errors. How you notify the company that issued your card matters.
A dispute over one charge or fee can affect how much you need to pay that month. Knowing how to identify the error, document it, and separate it from the rest of the bill can make the investigation easier to manage.
Identify Billing Errors
Not every problem with a purchase is a billing error. Examples include a charge for the wrong amount, a transaction you didn’t authorize, or a charge for goods or services you didn’t accept or that weren’t delivered as agreed. A payment or refund missing from the statement can also qualify.
Start by checking the statement against your receipts and order records. Note the date, the merchant, and the amount, then explain why the entry looks wrong. For example, if the same purchase appears twice, identify both entries so the issuer can tell which charge you’re disputing.
Watch the Deadline
For an error on a statement, the card issuer generally must receive your written notice within 60 days after it sent the first statement showing the error. Don’t restart the count if the same charge is still on a later statement.
According to Edward Kroub, a litigation partner at Mizrahi Kroub LLP, a phone call may alert the issuer to the problem, but following up with a letter helps preserve your dispute rights. If you call first, don’t wait for the company to return your call before preparing the notice.
Write the Notice
Send the letter to the address the issuer lists for billing inquiries, which may differ from the payment address. Include your name, account number, the disputed amount, and a brief explanation. Attach copies of relevant receipts, delivery records, or messages with the merchant, and keep the originals.
Keep a copy of the letter and a record of when it reached the issuer. If you mail it, certified mail with a return receipt gives you proof of delivery. Save the issuer’s responses with the rest of your records so you can refer to them if you need to follow up.
Manage the Rest of the Bill
While the issuer investigates a properly filed dispute, you can withhold the disputed amount and any related charges, but pay the undisputed portion of the bill on time. The issuer can still count the disputed amount against your credit limit, so check your available credit before relying on it for other expenses.
If you use automatic payments, check what is scheduled to come out of your bank account. If the scheduled amount includes the charge you’re disputing, ask the issuer how to adjust the payment without missing what you still owe. Check that any change applies to the upcoming payment.
Check for Patterns
A billing problem can also prompt a review of recurring charges. Look for subscriptions you no longer use, duplicate charges, and trials that have converted to paid plans. A charge you recognize after checking an order confirmation is different from a second charge for the same purchase.
Review statements when they’re available rather than waiting until payment is due. If your issuer offers transaction alerts, turn them on for purchases you want to catch between statements. Keep cancellation confirmations for subscriptions so you can compare the cancellation date with any later charge.
When the issuer sends its decision, check that any promised credit appears on your account. If the issuer says the charge is correct and you still disagree, ask for the documents it relied on.
