Credit Card Billing
by: Developed from materials provided by the National Consumer Law Center
Fixing Mistakes: Part III
[See Credit Card Billing Fixing Mistakes: Part I]
[See Credit Card Billing Fixing Mistakes: Part II]
If I dispute a bill, what happens to my credit rating?
While a bill is in dispute, the creditor may not damage or threaten to damage your credit rating. This means that he cannot claim you are late on a payment during the dispute period.
He can report that you are disputing your bill.
The law says you cannot be hassled or refused credit because you dispute a bill you honestly believe is wrong. This law is called the Equal Credit Opportunity Act.
What if the creditor made the mistake?
If there was a mistake on your bill, the creditor must fix it. He must tell you in writing what he did to fix it. Your account must be credited with the amount of the mistake.
All late fees and finance charges that you were charged on the mistaken amount must be credited too.
If the creditor concludes that you owe part of the disputed amount, this must also be said in writing.
You have the right to get copies of papers proving you owe the money.
What if the mistake is mine?
If the creditor checks out your claim and still believes the bill is correct, he must tell you right away in writing.
He must tell you the amount you owe and why.
You may ask for copies of his records that prove that you owe. At this point, you must pay the disputed amount, plus any finance charges.
You may also have to pay any payment amounts missed because of the dispute
What if I still think the bill is wrong?
If this happens, write the creditor within ten days after getting his explanation. Tell him that you are not going to pay the bill.
At this point the creditor can send collection agents after you. He can also report you to credit bureaus.
If he reports you to a credit bureau, he must also tell them that you don't think you owe the money. Also, he must tell you whom he reports to.
What if the Creditor Doesn't Follow the Law?
If he doesn't follow the law and respond to your notice in the ways described here, he can't get the money from you. Any finance charges on the amount in dispute may not be collected either. He also can't report you to credit bureaus.
But, if the bill turns out to be correct later, the creditor may be able to collect some finance charges.
You can also sue a creditor for not following the FCBA. Talk to a lawyer who knows how to do these types of cases.
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