Ever Have A Problem With Your Credit Card Company
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Ever Had an Issue with Your Credit Card Company?
Summary
What should you do if you notice an error on your credit card bill?
Handling Errors on Your Bill
When Your Bill Is Incorrect
If there's a mistake on your bill, your creditor must provide a written explanation of the corrections and update your account. This includes removing any finance charges or late fees related to the error. If part of the disputed amount is still owed, the creditor must give you a written explanation and provide documents supporting their claim.
When Your Bill Is Correct
If the investigation confirms your bill is correct, the creditor must promptly notify you in writing, explaining the amount you owe and why. You can request copies of any relevant documents. You will owe the disputed amount plus any finance charges that accrued during the dispute. Additionally, you may need to pay any missed minimum payments due to the dispute.
If you disagree with the investigation's outcome, you must write to the creditor within 10 days of receiving their explanation, stating that you refuse to pay the disputed amount. The creditor can then start collection procedures. If they report you as delinquent, they must also inform you of who receives these reports and note that you dispute the debt.
If the Creditor Doesn’t Follow Procedure
Creditors who fail to follow proper settlement procedures may not collect the disputed amount or any related charges, up to $50, even if the bill is accurate. For example, if a creditor acknowledges your complaint late or takes too long to resolve the dispute, this penalty applies. It also applies if they report your failure to pay during the dispute period improperly.
Important Note: Quality of Goods and Services
Disputes over the quality of goods and services are not considered billing errors and don't follow the same procedures. However, if you buy unsatisfactory goods or services with a credit card, you have certain protections under state law. To use these protections, you must:
- Make purchases over $50 within your home state or 100 miles of your billing address.
- First try to resolve the issue with the seller directly.
These limitations don’t apply if the seller is also the card issuer or if they have a special business relationship.
Other Billing Rights
Creditors offering "open-end" credit must:
- Provide a written notice outlining your rights to dispute billing errors when you open a new account or at other specified times.
- Send a statement for any period where your account balance is more than one dollar.
- Ensure bills are sent at least 14 days before the due date if there’s a grace period to avoid additional charges.
- Credit payments on the date received, unless it doesn’t result in extra charges, while being allowed to set reasonable payment deadlines.
- Promptly credit or refund overpayments if your account is owed more than a dollar. Refunds must be issued within seven business days after a written request.
Suing the Creditor
You can sue a creditor who violates the Fair Credit Billing Act (FCBA). If successful, you might receive damages plus twice the amount of any finance charge, within $100 to $1,000. The court might also require the creditor to cover your attorney's fees and costs.
Consider hiring a lawyer who will accept the court-awarded amount as their total fee. Some may require you to pay additional fees, win or lose, if they consider the award insufficient.
You can find the original non-AI version of this article here: Ever Have A Problem With Your Credit Card Company .
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