Problems With Credit Card Bill Pay

Problems with credit card bill payments can take many forms. Prior to 1974, consumers had little recourse when creditors charged them improperly or threatened to damage their credit rating when they raised questions about a bill. Today, the Fair Credit Billing Act requires creditors to follow certain rules and take reasonable actions to resolve disputes.

Billing Problems

Billing errors are one of two main categories of credit card problems addressed by the FCBA. Under the law, an error may involve an amount different from what you believe you paid, or a charge that is incorrectly dated. You are also protected if your account was not credited properly, if the bill has mathematical or accounting mistakes, and even if your statement was mailed to the wrong address. A reasonable request for clarification or more information about your bill is also considered a type of billing error.

Purchase Problems

The second main category of credit card problems relates to products or services that you didn't buy, were not accepted by you or your representative, were not delivered according to a purchase agreement or appear to be defective or otherwise deficient. However, for a purchase problem to be covered under the FCBA, you must have made a good faith effort either to return the items in dispute or to resolve the issue directly with the seller.

FCBA Solutions

Under the law, you have the right to challenge any billing error. You may also withhold payment of any balance due on a purchase of defective products or services, as long as the amount of the original purchase was over $50 and the sale was made in your state or within 100 miles of where you live. While you are contesting a bill, the FCBA prohibits the creditor from putting you into collection, reporting you as delinquent, or threatening your credit rating. While the disputed amount can be applied against your credit limit, your account cannot be restricted because of the dispute.

Procedures

If you wish to challenge a credit card billing problem covered by the FCBA, the first step is to notify the creditor in writing. In your notification, you must explain exactly what you are contesting and include your name, address and account number. While some credit card companies may accept notification by email, it is generally preferable to use regular or certified postal mail, especially if you can include supporting documentation like sales receipts. You must act within 60 days after the bill was mailed to you, and send your letter to the address provided for billing inquiries. The creditor is required to acknowledge your notification within 30 days.