Within thirty days of receiving your billing dispute, the card issuer is required to send you a letter acknowledging receipt of the dispute and to conclude its investigation within two full billing cycles, meaning the investigation cannot take longer than ninety days.
Your credit card company must acknowledge your dispute by sending you a billing error notice within 30 days of receiving your written letter if you discovered a billing error on your statement and disputed the charge.
They can look into the error for up to two billing cycles, or typically two months or sixty days, but no more than ninety days may be taken. They are not permitted to charge you interest on the amount that is being contested in the interim.
The card issuer is required to mail or deliver an explanation of their decision to reject your dispute if they conclude that there was no billing error.
In the event that the card issuer discovers a billing error, they are required to make the necessary corrections, credit your account with the disputed amount and any associated finance or other charges, and provide you with a correction notice.
You might be able to refuse to pay the remaining amount if you’re contesting a portion of the payment you made for a flawed or defective product, but generally speaking, all of the following requirements must be met:
Rules Around Disputing Credit Card Charges
You can contest a credit card charge and possibly receive your money back in two main situations. Depending on the circumstances, the rules and dispute procedure are comparable but not the same.
The federal Fair Credit Billing Act (FCBA) gives you the right to dispute credit card billing errors and requires creditors to promptly investigate your claim.
However, you have 60 days from the date you received the billing statement containing the error to file a dispute if you discover an error on your credit card statement and notify your card issuer. Because the statement includes transactions from the preceding few weeks, you will probably have more than 60 days from the transaction date. Still, you dont want to wait until the last minute.
Billing errors can include:
- Fraudulent transactions
- Charges for an item you didnt receive or accept
- Missing credits for returns or payments
- A charge with the wrong date
- A charge for the wrong amount
- If you changed your billing address at least 20 days prior to the end of the billing period, you may receive a bill that you did not receive at your current address.
Within 30 days of receiving your dispute, the credit card issuer must acknowledge it. During the investigation, you will not be liable for the charge or any interest that may have accrued.
If your billing cycle is longer than 60 days, creditors may have an additional 90 days to pursue their claims during the investigation. If something goes wrong, the card issuer has to fix it and credit your account with the amount that is being disputed. Additionally, federal law caps your liability for fraudulent transactions at $50; however, networks and card issuers frequently provide zero liability safeguards.
An Issue With Your Purchase
If you have a problem with the quality of the products or services you purchased using your credit card, you can also dispute a charge. For instance, you place an online order for a product, but it arrives damaged or looks different from what was advertised. These types of disputes are also called chargebacks.
In order to be eligible for legal protections, you must meet the requirements outlined in the FCBA:
- The purchase must be for over $50.
- The purchase must be made in the state where you currently reside or within 100 miles of your billing address; purchases made over the phone or online may not be subject to this requirement.
- The seller must be contacted in a sincere attempt to address the issue, such as by requesting a refund or replacement.
These disputes are not considered billing errors, so they are not covered by the FCBA’s billing error dispute procedure. Nonetheless, if the credit card networks (American Express, Discover, Mastercard, and Visa) establish policies that are more lax than relevant state or federal laws, they have the authority to implement them. In certain circumstances, you may file a chargeback up to 120 days after the transaction.
How to Dispute a Credit Card Charge
Whether there is a fraudulent charge, a billing error, or an issue with the good or service will determine the specific procedure for contesting a credit card charge. However, youll generally want to follow similar steps:
- Review the charge. To make sure there is a genuine error, you should first try to find out more information about the transaction. Your online account might be a good place to start. For example, even though it’s the same company, the name on your bill and the merchant’s storefront may be different.
- Reach out to your card issuer if you suspect fraud. Get in touch with your credit card company as soon as possible to report the fraudulent purchase. After that, the card issuer may cancel your card and provide you with a new one.
- Otherwise, contact the merchant. Should there be an alternative billing error or issue with the good or service, get in touch with the seller to see if they can promptly fix the problem. Sometimes this will be the fastest and most straightforward option.
- Dispute the transaction with your card issuer. You have the option to dispute the transaction with your card issuer if the merchant isn’t cooperating with you to find a solution. You can file your dispute by mail; the FTC provides basic instructions and a sample letter. You can usually do this online or over the phone. Try to be as precise as possible with the reason. For instance, rather than saying you didn’t receive the box, say it’s not what was described, as you did receive the box.
- Send supporting documents. Whether you’re disputing with the retailer or the credit card company, be ready to provide copies of your supporting documentation, like a copy of your receipt that accurately reflects the amount.
Check Your Credit Report for Errors
You can identify inaccurate or fraudulent transactions by going over your credit card statements and transactions. In a similar vein, you should check your credit reports for mistakes and signs of identity theft. A complimentary copy of your Experian credit report is available online. Additionally, use Experians Dispute Center to file a dispute if you notice anything wrong.
Have you discovered any incorrect information on your Experian credit report? If so, submit a dispute to have it addressed.
You should file a dispute if your credit report contains false information.
FAQ
Can you dispute a credit card charge after 1 year?
Although there is a 60-day legal minimum for disputing a transaction, some credit card processors provide an extended period. For instance, chargeback requests may be submitted with Visa, Mastercard, and American Express up to 120 days after the transaction date in specific circumstances.
Can you dispute a credit card charge after 180 days?
What is the Chargeback Time Limit? Chargeback time limits are determined by the card network and issuing bank, however U S. law sets a minimum time limit of 60 days. Most banks give cardholders 120 days to dispute a charge.
How late is too late to dispute a charge?
There is a catch, though: you have to contest charges within 60 days of the transaction showing up on your statement. Given the short time frame, be sure to frequently check your credit card account for indications of billing errors.
Can I dispute a credit card charge that I willingly paid for?
In certain situations, you have the right to contest a charge under the federal Fair Credit Billing Act, but many issuers make the process far simpler than it needs to be. However, just as you shouldn’t take advantage of a generous return policy, you also shouldn’t dispute credit card purchases unless you have a good reason to do so.
Read More :
https://www.experian.com/blogs/ask-experian/how-long-do-you-have-to-dispute-credit-card-charge/
https://www.cnbc.com/select/how-long-do-you-have-to-dispute-credit-card-charge/