Disputing credit card errors: Tips for winning the dispute

Let’s face it; we’ve all at some point had our credit card billed wrongly. Wrong credit card billing or errors do happen, and sometimes it requires a keen eye for your finances to realize. You might be charged for late payment when you actually paid your loans on time.

It is important to follow your credit card expenditure. This helps notice billing errors or fraud cases on time something that can help with the dispute.

Most people rarely dispute credit card errors because they don’t know how it affects them. They also don’t understand the law around credit card disputes when there are errors. You can learn more about what is fair credit billing Act (https://www.crediful.com/fcba/) to educate yourself on what do in case of a credit card error.

Even before you imagine of consulting an attorney or making a complaint to the financial regulators, here are a few things you need to do to facilitate your dispute.

1. Determine whether the errant charges on your credit are theft or fraud

Did you know the law protects you in case of unauthorized use of your credit card? You’re only liable for the first 50 dollars of any unauthorized charges. However, some credit card companies will not charge you anything when the matter is reported right away.

The first thing to do when your card number is hijacked is to call your issuer and cancel the card or make plans for a replacement. This also helps the issuer to keep a close eye on the transactions. In case of any theft or fraud cases, it is highly recommended that you file a report with the police or the Federal Trade Commission right away.

2. In case of a store error, call the retailer first

If the error on your credit is due to a mistake from the retailer, then it is recommended you try to sort out the issue with the merchant first. There are instances where retailers double charge cards and place the wrong amount for the purchase.

The law gives 60 days for one to report the issue to your card issuer in writing. This means you have time to try and sort it with the merchant first. If you don’t come to some sort of agreement, you can then file a complaint within 60 days. The 60-day window helps preserve your dispute rights and can mean the difference between winning the dispute or not.

3. Write to your credit card issuer

Calling them is okay, but if your issue is not resolved, it is advised that you write to them. Make a summary of your attempts to resolve the issue by providing names and dates. You can include a proof although this is not a requirement.

When ready, mail your letter and get the return receipt. This gives you proof of the date your letter was sent. The issuer is required by law to send a written acknowledgment of receiving your letter. You also need to fill any form sent your way and send it back with a return receipt.

4. Know your responsibilities and rights

You need to know your rights and what you’re supposed to do when there are billing errors on your card. You don’t have to pay a charge that is under dispute. This is one of your rights. This will not have any impact on your credit rating too.

The card company is not supposed to report to the credit bureaus any late payment when there is a dispute. The charge should also not accrue any interests. When you pay a disputed amount, you lose your rights to dispute the errors.

However, the card issuer also has rights to dispute the amount under dispute against your credit limit. Once a dispute is resolved in your favor, the charge and the interest incurred are canceled. However, if the dispute is not in your favor, you’re responsible for the charge and the related interest.

5. Be polite but act persistently

Acting polite can help you win your dispute fast. Sometimes when people raise their voices even when they are on the right, they tend to prolong the entire process.

The same level of politeness should be expressed in your letters. There is no need to speculate when a decision on the dispute has not been made. Stay calm and follow every step in an organized manner.

If your claim is rejected in the first dispute and you know you’re on the right side, don’t take that as a final.