When you find an item that you did not buy, report the inaccuracy to the credit card company according to their procedures. If you just sit back and don't pay back the erroneous credits, there are chances that the card company reports your case to a credit reporting agency. This way you might mar your otherwise perfect credit history.
Some of common billing problems you should learn to handle are:
Being charged for something your didn't buy
If you are sure that you have been charged in your credit card bill for an item you didn't purchase, take immediate action. The error can be due to anything. It can be a mistake made by the store or in worst cases someone might be able to access your card.
The first thing you should do is to call up the credit card company and report the error. But you can't be sure of your case being taken up by them. Back up your report with a written letter to bring the error into their notice. Request an investigation and ask them to let you know its report.
The company cannot collect the amount from you as long as the investigation is on. They also cannot report your case to a credit reporting agency.
Being charged for something you returned
It can take a couple of billing cycles before your credit card bill shows a chargeback on a returned item. When you return anything, make sure you have the return receipt. Mail this receipt to the credit card company along with a letter asking them to remove that charge from your bill.
Report subscription cancellations
There might be many things like magazines or a club you might have subscribed to using your credit card. But if you cancel the subscription, it can take a month or two before the cancellation shows on your credit card bill. As in the case of returned items, you should write to the company informing them about the cancellation and request a chargeback.
Problem of late fee
Credit card companies will date payment when they receive it and not when you have mailed it. See to it that you don't make a lapse on the due date by mailing the payment as quickly as possible.
Billing errors include:
A purchase you did not make or did not authorize.
Charges for goods or services that you did not receive or that you refused to accept.
Payments you made that were not credited to your account.
Bills that contain mathematical errors.
You can also dispute charges you don't remember making and request proof that the charge was made.
How do I correct errors?
You have 60 days from the date of the statement with the billing error, to write to your credit card company.
Send your letter to the address listed on your credit card statement for billing errors and inquiries. Include your name, account number, and the date and amount of the error. Explain in your letter why the billing is wrong. Request proof of purchase if that is the issue.
Send your letter certified mail return receipt requested for proof of delivery.
Do I have to pay the disputed amount?
No. You can withhold payment of the amount in dispute and the finance charge on that amount until the card company investigates the dispute. You can also withhold the interest payment on the disputed amount.
You must pay the amounts that are not in dispute.
What does the credit-card company have to do?
They must acknowledge receipt of your letter within 30 days. Within 90 days, or two billing cycles, they must investigate your dispute. They must correct their mistake or explain to you in writing why the bill is correct. If you request proof of a purchase, they must provide it to you.
If the credit card company doesn't follow these procedures, they cannot collect the amount you disputed or charge interest on that amount. The credit card company cannot close your account just because you file a dispute.
What if they don't correct the error?
If your claim is denied, or it is a dispute over merchandise or services that are defective or not delivered, you may be able to file a claim under Claims and Defenses.
Can the credit card company take action against me if I refuse to pay?
They can begin normal collection activities, such as referring the disputed amount to a collection agency, or suing you in court.
If you are contacted by a collection agency, send them a letter explaining why you feel you do not owe the money. A collection agency must stop contacting you if you send them a letter telling them not to contact you again. Send all letters by certified mail, return receipt requested, and keep a copy of the letter for your records.
If they file suit against you, you should seek legal assistance. If you file an answer to the lawsuit, you can appear in court and explain why you feel the billing is wrong.
The credit-card company can only report you to a credit-reporting agency if:
Both Daniel Wesley & Lar are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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