What happens if you complain, but you are found to be wrong? You should know what your rights are.
What if…
…the bill is incorrect?
In case your bill contains an error, the creditor must explain to you - in writing - the corrections that’ll be made to your account. In addition to crediting your bank account, the creditor must remove all finance charges, additional fees or other charges associated with the error.
If the creditor determines that you owe some of the disputed amount, you must get a written explanation. You might request copies of documents proving you owe the money.
…the bill is correct?
When the creditor’s investigation determines the balance is correct, you must be told promptly and in writing how much you owe and why. You might ask for copies of relevant documents. At this time, you’ll owe the disputed amount, plus any finance charges that accumulated while the amount is at dispute. You also may have to pay the minimum amount you missed paying due to the dispute.
If you disagree using the results of the investigation, you may email the creditor, however, you must act within Ten days after receiving the explanation, and you may indicate that you refuse to spend the money for disputed amount. At this point, the creditor can start collection procedures. However, when the creditor reports you to a credit bureau as delinquent, the report also must state that you don’t think your debt the money. The creditor must let you know who gets these reports.
…the creditor fails to follow the procedure?
Any creditor who does not follow the settlement procedure may not collect the amount in dispute, or any related finance charges, as much as $50, even if the bill happens to be correct. For instance, if a creditor acknowledges your complaint in 45 days - 15 days past too far - or takes more than two billing cycles to solve a dispute, the penalty applies. The penalty also applies if a creditor threatens to report - or improperly reports - your failure to pay for to anyone during the dispute period.
An important caveat
Disputes about the quality of products and services aren’t “billing errors,” so the dispute procedure does not apply. However, if you purchase unsatisfactory services or goods with a credit or bank card, you can go ahead and take same legal actions from the card issuer as you can take under state law against the seller.
To consider advantage of this protection regarding the quality of goods or services, you must:
- have made the acquisition (it must be for more than $50) in your home state or within 100 miles of the current billing address;
- make a great faith effort to resolve the dispute with the seller first.
The dollar and distance limitations don’t apply if the seller also is the card issuer - or if a special business model exists between the seller and also the card issuer.
Other billing rights
Companies that offer “open end” credit also must:
- give a written notice when you open a brand new account - and at certain other times - that describes your to dispute billing errors;
- provide an argument for each billing period that you owe - or they owe you - more than one dollar;
- send your bill at least 14 days before the payment is due - for those who have a period within which to pay for the bill without incurring additional charges;
- credit all payments to your account on the date they’re received, unless no extra charges would result if they failed to achieve this. Creditors are permitted to set some reasonable rules to make payments, say setting a reasonable deadline for payment to be received to be credited on the same date; and
- promptly credit or refund overpayments along with other amounts owed to your account. This applies to instances where your bank account is owed more than one dollar. Your bank account must be credited promptly with the amount owed. If you prefer a refund, it should be sent within seven working days after the creditor receives your written request. The creditor should also make a good faith effort to refund a credit balance that has remained in your account for more than six months.
Suing the creditor
You can sue a creditor who violates the FCBA. If you win, you may be awarded damages, plus twice the amount of any finance fee - as long as it’s between $100 and $1,000. A legal court also may order the creditor to pay your hips and costs.
If possible, hire a lawyer who’s willing to accept the total amount awarded to you by the court as the entire fee for representing you. Some lawyers may not take your case if you don’t agree to pay their fee - successful or unsuccessful - or increase the court-awarded amount when they think it’s too low…
