Handling Credit Card Billing Errors

When you agree to purchase by credit card you will receive a statement for each month in which there is a balance owed on your account. If you find that there is a mistake on your statement, such as a charge for an item that you didn't order, the federal Fair Credit Billing Act will protect you.

As soon as you are aware of a mistake, contact the creditor right away. You have only 60 days after you receive your statement to take care of this. You must notify the creditor about the error in writing - a telephone call won't protect your rights.

Within 30 days of receiving your notice, a creditor must respond appropriately. Within 90 days of having received 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 are within your right to withhold payments for 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.

Should the creditor refuse 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 you have made about the bill's legitimacy.

If your credit report contains inaccuracies, your ability to secure a loan, insurance or even land a job could be affected negatively. You can correct the errors in your credit report.

Order a copy of your credit report and then review it very carefully. Look for errors, even the least of them. If you find that your report contains incorrect information you can legally insist that a credit bureau correct the information free of charge.

Follow the instructions below and correct your credit report.

Correcting Your Credit Report

You should be signaled, right away, if you find that your credit score is low. This likely means there are errors. Keep in mind that the repair process is not quick. You can repair damaged credit but it does not happen over night.

Follow these important steps and improve your credit score.

1. Within a 30 day period of receiving your credit report advise the credit bureau of the problem in writing. Legally, the bureau will likely want to investigate the problem again and might contact the source of the information. The bureau if legally obligated to correct the error.

2. If you are not happy with how the bureau is dealing with your problem, send the bureau a written statement that contains no more than 100 words and explain your side of the situation. Provide all forms of proof that will support your claim. The bureau may be required to show your claim with any future reports that include the disputed information.

Check both your credit report and your credit score from time to time.

Your credit report will be one of the most important documents of its kind for you. Consider that when you wish to make a major purchase such as a home or a car, as well as when applying for an important new career position, your credit report will very likely be used to judge suitability and qualification. It is worth your time and efforts today, to see that your valuable credit report is in proper order.

Your Right to Credit

A consumer's right to credit is protected by U.S. law. Credit is required to be extended to all who qualify and without discrimination. All companies are required by law to NOT discriminate based on the sex and marital status when an applicant applies for credit. You have the right to: Obtain credit in your own name if you meet the creditor's criteria. Refuse to answer questions regarding any plans concerning having or raising children. Continue with current credit accounts even after a major life event such as marriage, divorce or widowhood so long as you meet the creditor's criteria. Be informed by the proposed creditor as to the specific reason your application for credit has been denied. Receive a copy of your credit report from one of the three major U.S. credit bureaus. You are entitled to receive a free credit report if you have recently been denied credit. When unfavorable information in your credit report cannot be eliminated you are entitled to have your side of the story placed in credit bureau files.

Knowing your credit rights and obligations frees you to meet the criteria necessary to obtain the credit that you deserve. Be an informed consumer and enjoy the benefits of credit card ownership.