Credit Tips - Fixing Erroneous Credit Card Statements PDF Print E-mail
Written by Mark Andrade   
Friday, 06 August 2010 10:15
It pays to be vigilant in checking your monthly credit card billing statements. Errors are common and when they happen it's up to you to find and report them to get them corrected. Speedy resolution requires some tact on your part so your issue is taken seriously and you achieve quick results.
by MarkAndrade


It pays to be vigilant in checking your monthly credit card billing statements. Errors are common and when they happen it's up to you to find and report them to get them corrected. Speedy resolution requires some tact on your part so your issue is taken seriously and you achieve quick results.

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.

If you have found any such mistakes on your credit card bill, you have the right to dispute the charges. Lenders are required to respond to your complaint and make corrections in a timely manner.

When you find an error, the first thing you need to do is document the mistake in letter format and send it to your creditor. Don't just mark up your statement and return it. That is not considered formal notification. Include your name, explanation, and dollar amount involved in the letter. Also reference your account number and send supporting documentation with it.

Creditors usually have an address designated just for such complaints, so be sure to use that one. Remember to keep a copy of everything you send in your letter. You have sixty days from your billing date in which to file a dispute.

When you receive you next bill, you still need to make payments on any undisputed charges. However, you don't have to pay anything on the portion in dispute or the related finance charges.

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.

The disputed amount can however remain on your monthly billing statements. It can also be applied to your credit limit, decreasing your credit availability. Interest can still accrue on the disputed amount, but the interest must be waived if the dispute is later settled in your favor.

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.

When the issue is resolved, the creditor must send a notice to everyone to whom it has reported the delinquency. If the creditor fails to comply with any of these measures, it must credit you the disputed amount, plus the interest related to that charge up to $50., even if the bill was correct.

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.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Visit our website all about Cheap Payday Loans which gives practical advice to those experiencing short-term financial difficulties. It also offers information on getting a Faxless Payday Loan, as well as tips on saving, budgeting, and other spending decisions.