The best bet to winning a dispute with credit card companies is to follow proper procedure. Credit card companies are bound by the federal Truth in Lending Act and the federal Fair Credit Billing Act, which outlines proper procedure for filing a dispute over credit card payments, transactions or fraud.
Credit Card Fraud and Liability
“If your credit card is lost or stolen--and then is used by someone without your permission--you do not have to pay more than $50 of those charges,” advises the United States Federal Reserve. “You do not need to buy ‘credit card insurance’ to cover amounts over $50.” The Federal Reserve advises consumers to do the following in case of credit card fraud:
- Report the credit card theft or loss immediately to the credit card company at the 1-800 number listed on their monthly statement.
- Keep a list of credit card account numbers and credit card companies’ phone numbers in a safe place. This will be helpful if an entire wallet or purse goes missing or is stolen.
- When travelling, keep a list only of credit card companies’ phone numbers handy, in case of theft or fraud.
Disputing Credit Card Billing Errors
Fraudulent or unauthorized transactions are one kind of billing error that may appear on a credit card statement. Others covered by the FCBA are:
- Transactions that list the wrong date or amount
- Failure to post payments, including credits
- Sending bills to an old address, if the credit card company has been notified in writing of a new address 20 days or more before the end of the billing period
- Mathematical errors
- Charges for unaccepted goods and services or goods and services that weren’t delivered as agreed
- Any transaction that a customer has made a request for clarification or error claim for, in addition to asking for an explanation or written proof of purchase
How to File Complaints Against Credit Card Companies
The two steps a consumer must take to file a complaint with a credit card company are:
- Send a letter to the credit card company at their “billing inquiries” address, not the payment address. The complaint should include the consumer’s name, address, account number and description of the disputed transaction.
- Ensure the letter reaches the credit card company within 60 days after the consumer received the first statement with the error.
The Federal Trade Commission also recommends consumers:
- include copies of any sales receipts and supporting documents with their complaints
- keep originals of any receipts or documents sent to the credit card company
- keep a copy of the dispute letter
- make sure the complaint is being sent to the correct company. A complaint over a bank-issued Visa or Mastercard must go to that bank.
- send the letter by certified mail, requesting a return receipt, to prove the credit card company has received the complaint.
Once a complaint is lodged, an investigation must be conducted. Read more in the article Resolving Complaints With Credit Card Companies.
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