| Correcting
Credit Card Billing Errors |
Your credit card issuer will provide you with a
statement for each month in which there is a balance owed on your
account. If you believe a statement contains an error, such as a charge
for an item you didn't order, the federal Fair Credit Billing Act
protects you. Here's how this law works:
First, you must notify the creditor as soon as possible
after you discover the suspected error, but no later than 60 days after
you receive your statement. You must notify the creditor about the error
in writing - a telephone call won't protect your rights.
Once the creditor receives your written notice of the
problem, it has 30 days to acknowledge that it has received the billing
error notice. Within 90 days of receiving your written notice, the
creditor must either correct the billing error, or notify you that it
has investigated your problem and either will not correct the alleged
error or make only a partial correction, and explain the reasons for its
decision. If the creditor exercises this option, you have the right to
request any documentation which the creditor used to reach its decision.
While your claim is being investigated, you have the
right to withhold payments relating to the disputed amount. If the
creditor agrees that a mistake was made, it must credit your account for
any amount which you paid due to the improper billing, along with any
finance or late charges that were imposed.
If the creditor refuses to acknowledge the error after
investigating your claim, it must allow you at least 10 days from the
time it notifies you that it has rejected your claim in which to pay the
disputed amount. If you still refuse to pay, the creditor can report you
to a credit bureau as delinquent. But if you notify him in writing that
your refusal to pay is based on your continued belief that the bill is
incorrect, any report it makes to a credit bureau has to disclose that
your refusal is based on a dispute about the bill's legitimacy.
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