NFIB

How to Resolve Credit Card Errors
04/ 15/ 2002

Like many small business owners, you may have discovered some benefits of using credit cards for the majority of your business purchases. But the more you use credit cards, the more likely you are to experience an error in billing. In today's Workshop, Jeffrey Moses discusses ways to resolve errors that show up on your credit card statements.

It's important to check statements promptly when they arrive. Go over the statement line by line, checking to make sure that all recorded purchases are valid, and that the price charged is correct.

It's also important to know the approximate date your statement arrives each month. If it doesn't arrive, call your card company and inform them that it's late. When your statement doesn't arrive, acting quickly is the best way to avoid delinquency charges and spot potential errors.

When you notice an error, take the following specific steps to rectify the situation.

1. Immediately call your credit card company to notify them of the error. Talk with a representative and be sure to get the person's name. Request that your call be documented in your record.

2. Even if you notify your credit card company by telephone, the Fair Credit Billing Act states that you need to notify the company in writing. So write a letter describing the situation and send by registered mail. Enclose any written proof you have showing errors in the charges, such as a receipt of purchase. You have 60 days from the time the statement was mailed to you to send this letter.

3. The credit card company then has 90 days or two normal billing cycles, whichever is less, to determine if a mistake has been made on the charge. You will receive notification either that the charge was a mistake, or that the charge was correct. The company should explain why the charges were correct if that is the determination.

4. If the charges were deemed correct and you wish to continue the dispute, contact the credit card company again in writing. If the charges are substantial, consider discussing the situation with an attorney.

5. While a charge is in dispute, you are not required to pay it or any interest until the dispute is resolved. If the credit card company determines that the charge was correct, they may demand payment of both the original charge and any interest accrued--and they may notify credit bureaus if you do not pay.

6. You always have the option of contacting the person or organization that initially charged your card. If you can speak with a person who is familiar with your transaction, you may be able to resolve the dispute yourself in a timely way. In this case, instruct the individual to notify your credit card company that the charge was in error.

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