A charge on your credit card statement that you don’t recognize, or one for something that never arrived, is easy to ignore until the holiday shopping rush buries it. Don’t wait. Federal law gives you a dispute process, and it comes with a deadline.
What Counts as a Billing Error
The Fair Credit Billing Act covers credit cards and other revolving accounts. According to the Federal Trade Commission, billing errors include:
- Charges you didn’t make, or that were made by someone else without permission.
- Charges with the wrong date or amount, or a math error.
- Goods or services you didn’t accept or that weren’t delivered as agreed.
- Payments that weren’t posted, or returns that weren’t credited.
- Charges for which you asked for an explanation or written proof of purchase.
Personal loans and car loans aren’t covered by this process.
Step 1: Call the Card Company, but Don’t Stop There
The Consumer Financial Protection Bureau (CFPB) suggests calling the issuer right away to explain the problem. Write down the date of each call and keep your notes together. A phone call is a good first move, but it isn’t what protects your rights under the law. The written notice does.
Step 2: Send a Written Dispute Within 60 Days
Your letter has to reach the issuer within 60 days of the first statement that showed the error. The FTC and CFPB word the starting point slightly differently (when the bill was sent versus when the charge appeared), so count from the earliest date to be safe.
Send the letter to the address listed for billing inquiries, not the address where you mail payments. The FTC suggests certified mail with a return receipt so you have proof it arrived. Include:
- Your name, address and account number.
- A clear description of the mistake, including the date and amount.
- Copies (never originals) of receipts or other records.
- A note that you are disputing this as a billing error.
Keep a copy of the letter. The FTC also links to a sample dispute letter you can adapt (see Sources).
Step 3: Know What the Issuer Must Do
Once your letter arrives, the issuer must acknowledge it in writing within 30 days, unless it has already fixed the problem. It must resolve the dispute within 90 days.
While the dispute is open, you can withhold payment on the disputed amount and any related finance charges. You still owe the undisputed part of your bill. The issuer can’t sue you over the disputed amount, threaten your credit rating, or close your account for disputing. It can still tell the credit bureaus the charge is under dispute, and if it reports you late, it must note that you dispute the bill.
If the issuer finds an error, it must correct your account in writing and remove related finance charges. If it decides the bill is right, it must explain what you owe and why, and give you a payment date. Pay by that date and you can’t be reported delinquent for the disputed amount. To keep fighting, the FTC says to write back within the payment period or 10 days after the explanation, whichever is later.
If you already paid the charge, you can still dispute it, but the CFPB notes the refund usually waits until the company decides.
If the Problem Is Fraud or a Product Complaint
For charges you never authorized, federal law limits what you can be held responsible for to $50, according to the FTC. Unauthorized charges can also be a sign of identity theft, and the FTC points to IdentityTheft.gov for next steps. If you lose a card and report it before anyone uses it, the CFPB says you can’t be held responsible for unauthorized charges. If fraud is the issue, a credit freeze is another layer of protection.
A defective product is handled differently. The CFPB says to contact the seller first. The FTC says its “claims and defenses” protection generally applies only if you tried to resolve it with the seller, the purchase was over $5, and it was made in your home state or within 100 miles of your billing address. Those limits don’t apply when the seller is also the card issuer.
Habits That Make Disputes Easier
Read your statement when it arrives, keep receipts for online orders, and check the card agreement on the issuer’s website for its specific rules. Spotting a bad charge in the first week leaves you plenty of time before the 60-day window closes.
These are general guidelines from federal agencies, current as of their last updates in 2024. Confirm the details with your card issuer.
More on Contoh
- How to Freeze Your Credit for Free at Equifax, Experian and TransUnion
- How to Find Unclaimed Money in Your Name (and Claim It for Free)