Credit Tips - Fixing Erroneous Credit Card Statements

Billing errors on credit card bills happen all the time. Generally, it's up to the consumer to vigilantly track all expenses and report errors found on their account statement. However, you must play by the rules so your complaint is taken seriously and given prompt consideration.

Here are some common mistakes to watch for: 1. items you returned and did not get credit for, 2. charges for items or services you never received, 3. charges incurred by an unauthorized party, 4. a charge not clearly identified or lacking information, 5. simple mathematical errors, or 6. lack of regular account statements.

You have the right to dispute any incorrect or unauthorized charges on your credit card bill. However, you must follow a formal process to lodge your complaint and seek resolution.

The first thing you must do when you identify a billing error, is write a letter explaining the issue. Do not just write on your statement and mail it back to the creditor. Use standard letter format and give your name, account number, an explanation, and the amount involved. Enclose any receipts or supporting documents you may have.

Send the letter to the address designated by your creditor for this purpose. Retain copies of everything for yourself. The credit card company must receive your letter within 60 days after it mailed the bill to you.

When making your next payment, you can withhold the portion in dispute, including finance charges. But you must continue to make payments on the portion of your bill not in dispute.

The creditor must acknowledge receipt of your letter within 30 days, unless the error is corrected in that time. The creditor has two billing cycles or 90 days, whichever is less, to correct the error or explain why it disagrees. If your complaint is is received at least three business days before the payment date, your creditor cannot automatically deduct the disputed amount or related finance charge while the dispute is pending. Finance charges and payment requirements for unrelated charges can continue.

During the investigation period, the creditor cannot report the disputed amount as delinquent to credit reporting agencies or other creditors. They are also prohibited from either threatening or taking collection action against you for the disputed amount.

The disputed amount can however remain on your monthly billing statements. It can also be applied to your credit limit, decreasing your credit availability. Interest can still accrue on the disputed amount, but the interest must be waived if the dispute is later settled in your favor.

If your dispute is settled and you are not satisfied with the outcome, you have ten days in which to respond to why you still don't agree to pay. Send a second letter restating your position. If your account is reported to a credit bureau as delinquent, documentation of your position on the dispute must also be included. The creditor is then required to send you the name and address of each credit bureau and anyone else to which it reported the delinquency.

When the issue is resolved, the creditor must send a notice to everyone to whom it has reported the delinquency. If the creditor fails to comply with any of these measures, it must credit you the disputed amount, plus the interest related to that charge up to $50., even if the bill was correct.

It pays to be vigilant in reviewing your credit card statements. Mistakes can occur and you are within your right to dispute inaccurate or unauthorized charges. However, you must play by the rules, just like to credit card companies have to. There is no reason to pay more than you owe on a credit card or any other kind of bill.

By: Mark Andrade

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