Your Credit Card Rights: What To Do If You Have a Problem
Federal law gives credit card users significant protections, but those protections depend on acting promptly and following the right steps. If you find a problem, here is how to handle it.
Billing errors
Under federal law, you can dispute certain billing errors, such as a charge for the wrong amount, a charge for something you did not accept or receive, a math mistake or a payment not credited. To preserve your rights:
- Write to the address your card issuer gives for billing inquiries. Do not send it with your payment.
- Do so within the time limit stated on your statement, which is a matter of weeks from when the statement was mailed.
- Identify your name, account number, the amount and why you believe it is wrong.
- Keep a copy and send by a trackable method.
The issuer must acknowledge your letter and investigate within set time frames. While the dispute is pending, you generally do not have to pay the disputed amount, and the issuer should not report it as delinquent. Keep paying the rest of your bill.
Unauthorized charges and lost cards
If your card is lost or stolen, call the issuer right away. Your liability for unauthorized use is limited by law, and reporting quickly protects you. Review statements regularly and report any charge you do not recognize.
Problems with goods or services
If you paid by card for something defective, you may in some cases have the right to dispute the charge after first trying in good faith to resolve it with the merchant. Certain limits may apply, for example regarding the purchase location or amount. Contact your issuer to see what applies.
Document everything
Save receipts, emails, order confirmations, screenshots and notes of phone calls, including date, time and the name of the person you talked to. A clear paper trail strengthens a dispute.
If the issuer does not help
You can file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov. State consumer protection offices may also assist.
Keep an eye on your credit
After a dispute, check your credit report to confirm that the disputed charges are not showing as late payments.
If a card problem is part of a larger financial strain, contact us and we will help you think through your options.
This article is general information, not tax, legal or investment advice for your specific situation.