Correcting an error on your credit card statement – whether it’s an unauthorized fraudulent transaction, a double charge to your card or another problem – can be a challenge. But it is important to act quickly.
Under federal law, you generally only have 60 days from when the statement is sent to notify your credit card issuer and get a refund of the illegal activity.
What counts as a credit card payment error
A credit card payment error occurs when a product or service appears on a card you did not purchase or receive. You can show that the product did not arrive at your door or that the service was purchased fraudulently by someone who obtained your information.
Unauthorized charges, duplicate charges, charges with the wrong date or amount, accounting errors, items not delivered as agreed, returns that were still billed and charges that require clarification are all covered under the Fair Billing Act. You can dispute any of those types of charges, but the dispute is not one where you have buyer’s remorse after the product or service has been properly delivered to you.
While it is okay to resolve the issue with the merchant first, you should know your rights as a credit card holder and file disputes if necessary. This dispute process works for credit cards and revolving lines of credit, but installment loans like car loans and personal loans have different rules.
60 day clock
It’s best to jump on any billing errors the moment you see them, but if you’ve just seen an error, you may have time to fix it. The 60-day window begins when the first erroneous bill is submitted. That means you may have more than 60 days from the date of purchase. However, if this error appeared on a previous statement, you may have less than 60 days to resolve the issue.
You don’t have to complete the entire process within this 60-day clock. You must file a dispute with your card issuer within the 60-day window. Even if the whole process takes more than 60 days, you may get your money back if your card issuer decides it was a mistake or an error.
Cardholders will have to provide proof that the transaction is fraudulent. Any relevant copies of emails, delivery confirmations, cancellation notices, screenshots or seller letters can help you prove your case.
Calling a representative or entering a customer service chat is not the same as filing a dispute. If you can’t reach a solution with the merchant, it’s important to contact your card issuer immediately. You may want to go directly to the card issuer and file a dispute instead of reaching out to the merchant if they are close to the 60-day deadline.
What happens after the argument
The credit card issuer must acknowledge your dispute in writing within 30 days unless the matter is resolved, and any dispute must be resolved within 90 days. Consumers do not have to pay the amount in dispute while the investigation is ongoing, but they must continue to pay their outstanding debts.
A disputed payment usually won’t affect your credit score or report if you don’t pay it right away. In the event that the issuer determines that the transaction was legitimate, they must provide a written explanation. Then, you will be responsible for it. However, you can file a complaint within the provider’s deadline or 10 days after receiving the explanation, whichever comes first.
