Resolving Complaints with Credit Card Companies
Investigations on Incorrect Statements, Mistakes and Disputes
Apr 3, 2009
Credit card companies are bound the federal Fair Credit Billing Act when it comes to resolving disputes over billing errors. Once a customer has followed correct procedure when filing a complaint, the creditor must follow certain steps as well.
When Credit Card Companies Receive a Complaint
The credit card company must acknowledge receiving the complaint within 30 days of receipt, unless the dispute is settled before then. If the dispute has not been settled, they must resolve the problem within two billing cycles, but not more than 90 days after they receive the complaint.
During the Process of Investigating a Dispute
When a credit card statement is in dispute, the consumer does not have to pay the disputed amount, advises the Federal Trade Commission. The consumer must pay all parts of the bill not in question, however, including charges and fees on undisputed amounts.
During the investigation process, a credit card company:
- can not take legal or any other action to collect the disputed amount or associated charges incurred over the disputed amount
- can not threaten a consumer’s credit rating or report the consumer as delinquent
The credit card company may report that the consumer is challenging a bill, but the Equal Credit Opportunity Act does not allow discrimination against consumers who exercise their rights in good faith under the FCBA. “Simply put, you cannot be denied credit simply because you've disputed a bill,” advises the FTC.
When a Credit Card Statement Is Incorrect
If the credit card company determines an error has been made, they must explain to the consumer, in writing, what corrections will be made to the account. The credit card company must also waive all charges and fees, including late fees, related to the error. If the company decides the consumer owes them part of the disputed amount, the company must provide written explanations and supporting documents at the consumer’s request.
When a Credit Card Statement is Correct
The United States Federal Reserve advises consumers that if they dispute a billing error and the credit card company determines there was no mistake made, the consumer must receive a written explanation and a statement of the amount owed. The consumer will also owe any charges and fees that have accumulated during the dispute.
Appealing the Credit Card Company’s Findings
If the consumer disagrees with the results of the investigation, he or she must write to the credit card company within 10 days of receiving their written explanation and advise that he or she still refuses to pay the disputed amount. “At this point, the creditor may begin collection procedures,” warns the FTC. “However, if the creditor reports you to a credit bureau as delinquent, the report also must state that you don't think you owe the money.”
If a Credit Card Company Fails to Follow Procedure
If a creditor fails to follow proper FCBA procedure, they are not allowed to collect the disputed amount, or any related charges, up to $50, regardless of whether the statement was correct or incorrect. Failing to follow procedure includes:
- Failing to acknowledge the consumer’s complaint within 30 days
- Taking more than two billing cycles to resolve the dispute
- Threatening to report failure to pay during the investigation process
- Improperly reporting failure to pay during the investigation process
A consumer who wishes to report FCBA violations should contact the Federal Trade Commission. It is also possible to sue a creditor who violates the FCBA. The FTC recommends finding a lawyer who will accept the amount won in court as a representation fee.
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