Credit Tips - Fixing Erroneous Credit Card Statements

Credit card statements frequently contain billing errors. As a consumer, it's up to you to verify your expenses each month and notify your lender of any mistakes. When doing so, it's important to follow the rules to be taken seriously and achieve speedy resolution.

Here are some common mistakes to watch for: 1. items you returned and did not get credit for, 2. charges for items or services you never received, 3. charges incurred by an unauthorized party, 4. a charge not clearly identified or lacking information, 5. simple mathematical errors, or 6. lack of regular account statements.

You have the right to dispute any incorrect or unauthorized charges on your credit card bill. However, you must follow a formal process to lodge your complaint and seek resolution.

The first thing you must do when you identify a billing error, is write a letter explaining the issue. Do not just write on your statement and mail it back to the creditor. Use standard letter format and give your name, account number, an explanation, and the amount involved. Enclose any receipts or supporting documents you may have.

Send the letter to the address designated by your creditor for this purpose. Retain copies of everything for yourself. The credit card company must receive your letter within 60 days after it mailed the bill to you.

When making your next payment, you can withhold the portion in dispute, including finance charges. But you must continue to make payments on the portion of your bill not in dispute.

You must receive acknowledgment of your complaint within thirty days, unless corrections are already made. Within ninety days, or two billing cycles (whichever is less), the creditor is required to either resolve your dispute or offer their explanation for not dropping the charges. While your case is pending, automatic payments and finance charges related to the dispute must cease. Payments and finance charges for unrelated purchases are allowed to continue.

Your creditor is not allowed to report the amount in dispute as delinquent to the credit bureau during the investigation period. They also cannot send your account to collections during this time.

You will probably continue to find the charges in dispute, along with the related interest charges, on your monthly statement, until the problem is resolved. Your creditor is also allowed to lower your available credit for the disputed amount during this time. However, if the issue is resolved in your favor, that will change and related interest charges will be dropped.

If you are not satisfied with the final resolution proposed by your creditor, you can send them a second formal letter. Further elaborate on your position and send it to them within ten days. Your documentation must accompany any delinquency reports they choose to send to a credit bureau. Your creditor must then provide you with the name and address of anyone they sent notification of your delinquency to, including the name and address.

If your dispute is finally resolved, anyone who received notice of your delinquency must be given the updated status. Any creditor that fails to follow through on these actions will have to credit you the disputed amount, plus interest up to $50., even if they were right.

The frequency of credit card errors makes it prudent to review your statements every month. You have the right to dispute inaccuracies and unauthorized fees. However, you have to follow certain protocols, just like the credit card companies do. You can avoid paying more than you owe if you take prompt and decisive action when you recognize there has been a mistake.

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