Credit card companies are bound by the federal Fair Credit Billing Act (FCBA) 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.

Customer Rights During the Process of Investigating a Disputed Bill

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 (ECOA) 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 Credit Card Billing 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.