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If you’ve ever opened your monthly credit card statement and found that you were erroneously – billed twice, not credited for a payment, charged for an item you never purchased or overcharged by your credit card company – You are not alone. For people with open-end credit, the Fair Credit Billing Act (FCBA) protects your rights as consumers. Open-end credit accounts include credit cards, and revolving charge card accounts – such as department store accounts. The FCBA does NOT cover installment accounts (loans or extensions of credit you repay on a fixed scheduled; for example, loans made to finance a car, furniture, boat, etc.).

What types of disputes are covered?

According to the Federal Trade Commission (FTC), the FCBA settlement procedures apply only to disputes about “billing errors.” For example:

• unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
• charges that list the wrong date or amount;
• charges for goods and services you didn’t accept or weren’t delivered as agreed;
• math errors;
• failure to post payments and other credits, such as returns;
• failure to send bills to your current address – provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and
• charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.

An error on your statement may be tremendously frustrating and inconvenient. But, these errors can be corrected!Under the law if you are disputing a charge, creditors cannot report your account as delinquent during the investigation. If you question an item on your statement you are responsible for notifying the creditor in writing within 60 days of receiving the bill. The creditor must acknowledge the notice within 30 days and may not do anything to damage your consumer credit rating while the item is in dispute. In addition the creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.It is very important that take action on your dispute immediately – Put your dispute in writing (a phone call, fax or email or won’t protect you). Then, mail it. To get you started here’s a simple sample letter recommended by the FTC.Date
Your Name
Your Address
Your City, State, Zip Code
Your Account NumberName of Creditor
Billing Inquiries
Address
City, State, Zip CodeDear Sir or Madam:I am writing to dispute a billing error in the amount of $______on my account. The amount is inaccurate because (describe the problem). I am requesting that the error be corrected, that any finance and other charges related to the disputed amount be credited as well, and that I receive an accurate statement.Enclosed are copies of (use this sentence to describe any enclosed information, such as sales slips, payment records) supporting my position. Please investigate this matter and correct the billing error as soon as possible.Sincerely,
Your name
Enclosures: (List what you are enclosing – include any documentation such as copies of receipts, to support your argument. Keep the originals for your records)Also, very important – make sure you send it to the right address and department. Use the address for Billing Inquiries listed at the back of your credit bill.

To learn more about billing and other errors on your credit, how they affect your credit score and the different methods you can use to resolve them, check out chapters 3 and 5 of my book “7 Steps to a 720 Credit Score.

Philip X. Tirone’s, book “7 Steps to a 720 Credit Score: Strategies for Excellent Credit” as well as Applying the 7 Steps to a 720 Credit Score Workbook”, containing samples of the forms, letters and worksheets are both included in his 7 Steps to 720 Credit Score Kit. The kit is available at www.720score.com or by calling 1-888-254-2702.”