What Can I Do when My Credit Card Bill is in Dispute?
The Federal Credit Billing Act (FCBA) lays out what is required of a creditor and what the rights of a consumer are when there is a credit card billing error. Some examples of billing errors covered by the Act are: - Failure of the creditor to send bills to your current address
- Demands for explanation of certain charges or written proof of purchase
- Unauthorized charges
- Math errors
However, in order for the consumer to take advantage of Act's protections, the consumer must write the creditor at the address for billing inquiries within 60 days of receiving the first bill containing the error. The consumer must describe the billing error to the creditor so that the creditor will be informed of the situation and has a fair chance to resolve the dispute. What Rights Do I Have after I Have Informed My Creditor of the Billing Error?
While the bill is in dispute: - You may withhold payment on the disputed part of the bill (but only the disputed part) without being subject to legal action by the creditor while the investigation is ongoing. Note: the disputed amount may be applied against your credit limit.
- Your creditor may not threaten your credit rating or report you as delinquent during the dispute.
- A consumer cannot be denied credit in the future based on challenging a credit card bill in good faith in the past.
If the creditor finds that the there was a billing error, the creditor must explain to the consumer in writing what the error was and what corrections are being made. The creditor must also remove all charges related to the error. If the creditor finds there was no billing error, the consumer must be informed in writing of how much is owed and why. The consumer then has 10 days to write the creditor if the consumer disagrees with the result of the creditor's investigation. The creditor may report the consumer as delinquent, but has to put in that the consumer is refuting the charges and must tell the consumer who the reports are being sent to. What Should I Do if My Creditor Does Not Comply with FCBA Procedures?
If your creditor does not follow the FCBA Procedures after you have informed them of a billing error, you may be able to sue them in civil court. You may be entitled to damages, plus twice the amount of any finance charge - as long as it is between $100 and $1,000. You should consult an attorney to determine what action you should take to enforce your rights under the FCBA as a consumer. |
