Credit Card Billing Errors

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="074285a1erlcgo.png"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>Gordon R. Leech, Wisconsin Fair Credit, Injury & Employment Attorney</B></FONT><B>    </B><B> |     </B><A HREF="index.htm" TARGET="_top" TITLE="Gordon R. Leech, Wisconsin Fair Credit, "><U><B>home</B></U></A></div> <div> <A HREF="potential_claim_inquiry.htm" TARGET="_top" TITLE="Potential Claim Inquiry"><U>Potential Claim Inquiry</U></A>   |   <A HREF="attorney_gordon_leech_biography.htm" TARGET="_top" TITLE="Attorney Gordon Leechs Biography"><U>Attorney Gordon Leech's Biography</U></A>   |   <A HREF="credit_report_disputes__what_to_do__know_your_rights.htm" TARGET="_top" TITLE="Credit Report Disputes Claims"><U>Credit Report Disputes & Claims</U></A>   |   <A HREF="id36.htm" TARGET="_top" TITLE="Identity Theft"><U>Identity Theft</U></A>   |   <A HREF="debt_collection_violations.htm" TARGET="_top" TITLE="Debt Collection Violations"><U>Debt Collection Violations</U></A>   |   <B>Credit Card Billing Errors</B>   |   <A HREF="workers_rights_in_wisconsin___federal_law.htm" TARGET="_top" TITLE="Your Rights In The Workplace"><U>Your Rights In The Workplace</U></A>   |   <A HREF="your_employment_rights_in_wisconsin__overtime_pay.htm" TARGET="_top" TITLE="Employment Claims"><U>Employment Claims</U></A>   |   <A HREF="id40.htm" TARGET="_top" TITLE="Unpaid Wage Claims"><U>Unpaid Wage Claims</U></A>   |   <A HREF="wisconsin_workers_compensation_claim_information.htm" TARGET="_top" TITLE="Work Injury Claims"><U>Work Injury Claims</U></A>   |   <A HREF="reemployment_rights_of_uniformed_service_members.htm" TARGET="_top" TITLE="Reemployment Rights of Uniformed Service"><U>Reemployment Rights of Uniformed Service Members</U></A>   |   <A HREF="auto_fraud___deceptive_practices.htm" TARGET="_top" TITLE="Auto Fraud"><U>Auto Fraud</U></A>   |   <A HREF="how_to_protect_your_rights.htm" TARGET="_top" TITLE="How to Protect Your Rights"><U>How to Protect Your Rights</U></A>   |   <A HREF="workplace___consumer_news.htm" TARGET="_top" TITLE="News"><U>News</U></A>   |   <A HREF="helpful_links.htm" TARGET="_top" TITLE="Helpful Links"><U>Helpful Links</U></A>   |   <A HREF="id33.htm" TARGET="_top" TITLE="File Share"><U>File Share</U></A>   |   <A HREF="id34.htm" TARGET="_top" TITLE="Newsletter"><U>Newsletter</U></A>   |   <A HREF="id35.htm" TARGET="_top" TITLE="Downloads"><U>Downloads</U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="073d2c00dkelyh.png"> <div> Samster, Konkel & Safran, SC</div> <div> 1110 N. Old World Third St. #405</div> <div> Milwaukee, WI 53203</div> <div> Tel: 414-224-0400</div> <bR> <div> My Other Sites:</div> <div> <A HREF="http://www.myfaircredit.com" TARGET="_top" TITLE="http://www.myfaircredit.com"><U>www.MyFairCredit.com</U></A>, information on your consumer rights relating to Fair Credit Reporting and Obtaining Your Credit Reports.</div> <bR> <div> <A HREF="http://www.myfairdebt.com" TARGET="_top" TITLE="http://www.myfairdebt.com"><U>www.MyFairDebt.com</U></A>, information on your consumer rights relating to Fair Debt Collection.</div> <bR> <div> <A HREF="http://www.skslawyers.com" TARGET="_top" TITLE="http://www.skslawyers.com"><U>www.skslawyers.com</U></A>, information on the law firm of Samster, Konkel & Safran.</div> <bR> <div> <B>Potential claim?  </B><A HREF="potential_claim_inquiry.htm" TARGET="_top" TITLE="Potential Claim Inquiry"><U><B>Click Here</B></U></A><B>.</B></div> <bR> <div> <B>Want to see our newsletter?  </B><A HREF="id34.htm" TARGET="_top" TITLE="Newsletter"><U><B>Click Here</B></U></A><B>.</B></div> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>Credit Card Billing Errors</I></div> <div> If you have charges on your credit card bills that are inaccurate or that you did not authorize, you have certain rights to dispute these types of charges.  You should act quickly, though, as certain time limitations may apply to your situation that you must act within or loose some of your rights to dispute the charges or avoid liability all together.</div> <bR> <div> For inaccurate charges, you may only have 60 days from the first bill that you recieve reflecting inaccurate charges to dispute them, which must be in writing under the Federal Fair Credit Billing Act, to avoid liability for paying the credit card company for these charges.  You may have a defense or maybe even a claim against the original merchant that ran your credit card for the inaccuracy, but you may still face legally permissible collection efforts and even a lawsuit by the credit card company for the debt if you do not dispute the inaccurate charge within 60 days in writing.  If you pay the credit card company on a disputed amount, you will not have a legal right to recover that disputed amount from the credit card company anymore under the Federal Fair Credit Billing Act, but you may retain a defense or maybe even a claim against the original merchant.</div> <bR> <div> Credit card accounts opened fraudulently, by identity theft for example, are not your legal obligation, but you will likely have to deal with the situation when the collector comes calling or even files a lawsuit against you to recover the amounts charged by the thief.  If fraudulent accounts have been opened in your name, you should also act quickly to notify the police in your area, the credit card company or bank that opened the account, the Federal Trade Commission and the credit reporting agencies to give them all notice of the fraud committed upon you.  You should be liable for amounts charged to credit cards opened fraudulently in your name.  You will likely have to prepare a written statement to file with the police and provide that to the various companies that were also duped by the defrauder.  If sued on the fraudulent debt, you will need to respond to the lawsuit to defend against an adverse judgment against you.  If you do not defend, you may end up with a valid judgment against you for the fraudulent debt that you may have to pay if you had notice of the lawsuit or otherwise failed to protect your rights after becoming aware of the lawsuit.</div> <bR> <div> For more information on how to dispute a credit card bill and your rights under the Fair Credit Billing Act, visit the Federal Trade Commission's website at <A HREF="http://www.ftc.gov/bcp/conline/edcams/credit/coninfo_loans.htm" TARGET="_top" TITLE="http://www.ftc.gov/bcp/conline/edcams/cr"><U>http://www.ftc.gov/bcp/conline/edcams/credit/coninfo_loans.htm</U></A>.</div> <bR> <div> For more information on identity theft and your rights, visit the Federal Trade Commission's website at <A HREF="http://www.consumer.gov/idtheft/" TARGET="_top" TITLE="http://www.consumer.gov/idtheft/"><U>http://www.consumer.gov/idtheft/</U></A>.</div> <bR> <div> The FTC website as of July 25, 2006, provides the following Facts for Consumers on Fair Credit Billing, which includes a sample credit card dispute letter:</div> <bR> <div> <B>Fair Credit Billing</B></div> <div> Have you ever been billed for merchandise you returned or never received? Has your credit card company ever charged you twice for the same item or failed to credit a payment to your account? While frustrating, these errors can be corrected. It takes a little patience and knowledge of the dispute settlement procedures provided by the Fair Credit Billing Act (FCBA).</div> <div> The law applies to "open end" credit accounts, such as credit cards, and revolving charge accounts - such as department store accounts. It does not cover installment contracts - loans or extensions of credit you repay on a fixed schedule. Consumers often buy cars, furniture and major appliances on an installment basis, and repay personal loans in installments as well.</div> <div> <B>What types of disputes are covered?</B></div> <div> The FCBA settlement procedures apply only to disputes about "billing errors." For example:</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">charges that list the wrong date or amount; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">charges for goods and services you didn't accept or weren't delivered as agreed; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">math errors; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">failure to post payments and other credits, such as returns; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">failure to send bills to your current address - provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification. </div> <div> <B>To take advantage of the law's consumer protections, you must:</B></div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">write to the creditor at the address given for "billing inquiries," not the address for sending your payments, and include your name, address, account number and a description of the billing error. </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you. </div> <div> Send your letter by certified mail, return receipt requested, so you have proof of what the creditor received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.</div> <div> The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter. <A HREF="id35.htm" TARGET="_top" TITLE="Downloads"><U>[Click here to Download Sample Letter]</U></A></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="656" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 376 WIDTH="646"><div> Date</div> <div> Your Name</div> <div> Your Address</div> <div> Your City, State, Zip Code</div> <div> Your Account Number</div> <div> Name of Creditor</div> <div> Billing Inquiries</div> <div> Address</div> <div> City, State, Zip Code</div> <div> Dear Sir or Madam:</div> <div> I am writing to dispute a billing error in the amount of $______on my account. The amount is inaccurate because (describe the problem). I am requesting that the error be corrected, that any finance and other charges related to the disputed amount be credited as well, and that I receive an accurate statement.</div> <div> Enclosed are copies of (use this sentence to describe any enclosed information, such as sales slips, payment records) supporting my position. Please investigate this matter and correct the billing error as soon as possible.</div> <div> Sincerely,</div> <div> Your name</div> <div> Enclosures: (List what you are enclosing.)</div> </tD> </tR> </TABLE></div> <div> <B>What happens while my bill is in dispute?</B></div> <div> You may withhold payment on the disputed amount (and related charges), during the investigation. You must pay any part of the bill not in question, including finance charges on the undisputed amount.</div> <div> The creditor may not take any legal or other action to collect the disputed amount and related charges (including finance charges) during the investigation. While your account cannot be closed or restricted, the disputed amount may be applied against your credit limit.</div> <div> <B>Will my credit rating be affected?</B></div> <div> The creditor may not threaten your credit rating or report you as delinquent while your bill is in dispute. However, the creditor may report that you are challenging your bill. In addition, the Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants who exercise their rights, in good faith, under the FCBA. Simply put, you cannot be denied credit simply because you've disputed a bill.</div> <div> <B>What if...</B></div> <div> <B>...the bill is incorrect?</B></div> <div> If your bill contains an error, the creditor must explain to you - in writing - the corrections that will be made to your account. In addition to crediting your account, the creditor must remove all finance charges, late fees or other charges related to the error.</div> <div> If the creditor determines that you owe a portion of the disputed amount, you must get a written explanation. You may request copies of documents proving you owe the money.</div> <div> <B>...the bill is correct?</B></div> <div> If the creditor's investigation determines the bill is correct, you must be told promptly and in writing how much you owe and why. You may ask for copies of relevant documents. At this point, you'll owe the disputed amount, plus any finance charges that accumulated while the amount was in dispute. You also may have to pay the minimum amount you missed paying because of the dispute.</div> <div> If you disagree with the results of the investigation, you may write to the creditor, but you must act within 10 days after receiving the explanation, and you may indicate that you refuse to pay the disputed amount. At this point, the creditor may begin collection procedures. However, if the creditor reports you to a credit bureau as delinquent, the report also must state that</div> <div> you don't think you owe the money. The creditor must tell you who gets these reports.</div> <div> <B>...the creditor fails to follow the procedure?</B></div> <div> Any creditor who fails to follow the settlement procedure may not collect the amount in dispute, or any related finance charges, up to $50, even if the bill turns out to be correct. For example, if a creditor acknowledges your complaint in 45 days - 15 days too late - or takes more than two billing cycles to resolve a dispute, the penalty applies. The penalty also applies if a creditor threatens to report - or improperly reports - your failure to pay to anyone during the dispute period.</div> <div> <B>An important caveat</B></div> <div> Disputes about the quality of goods and services are not "billing errors," so the dispute procedure does not apply. However, if you buy unsatisfactory goods or services with a credit or charge card, you can take the same legal actions against the card issuer as you can take under state law against the seller.</div> <div> To take advantage of this protection regarding the quality of goods or services, you must:</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">have made the purchase (it must be for more than $50) in your home state or within 100 miles of your current billing address; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">make a good faith effort to resolve the dispute with the seller first. </div> <div> The dollar and distance limitations don't apply if the seller also is the card issuer - or if a special business relationship exists between the seller and the card issuer.</div> <div> <B>Other billing rights</B></div> <div> Businesses that offer "open end" credit also must:</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">give you a written notice when you open a new account - and at certain other times - that describes your right to dispute billing errors; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">provide a statement for each billing period in which you owe - or they owe you - more than one dollar; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">send your bill at least 14 days before the payment is due - if you have a period within which to pay the bill without incurring additional charges; </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">credit all payments to your account on the date they're received, unless no extra charges would result if they failed to do so. Creditors are permitted to set some reasonable rules for making payments, say setting a reasonable deadline for payment to be received to be credited on the same date; and </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">promptly credit or refund overpayments and other amounts owed to your account. This applies to instances where your account is owed more than one dollar. Your account must be credited promptly with the amount owed. If you prefer a refund, it must be sent within seven business days after the creditor receives your written request. The creditor must also make a good faith effort to refund a credit balance that has remained on your account for more than six months. </div> <div> <B>Suing the creditor</B></div> <div> You can sue a creditor who violates the FCBA. If you win, you may be awarded damages, plus twice the amount of any finance charge - as long as it's between $100 and $1,000. The court also may order the creditor to pay your attorney's fees and costs.</div> <div> If possible, hire a lawyer who is willing to accept the amount awarded to you by the court as the entire fee for representing you. Some lawyers may not take your case unless you agree to pay their fee - win or lose - or add to the court-awarded amount if they think it's too low.</div> <div> <B>Reporting FCBA violations</B></div> <div> The Federal Trade Commission (FTC) enforces the FCBA for most creditors except banks. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at <FONT SIZE="3" COLOR="#0000FF" FACE="Arial" ><U>www.ftc.gov</U></FONT>. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.</div> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> Attorney Gordon R. Leech</div> <div> Samster, Konkel & Safran, SC</div> <div> 1110 N. Old World Third St., Suite 405</div> <div> Milwaukee, WI 53203</div> <div> Tel: 414-224-0400</div> <div> Email: <A HREF="mailto:gleech@attorneyleech.com" TARGET="_top" TITLE="mailto:gleech@attorneyleech.com"><U>gleech@AttorneyLeech.com</U></A></div> <div> Web: www.AttorneyLeech.com; <A HREF="http://www.myfaircredit.com" TARGET="_top" TITLE="http://www.myfaircredit.com"><U>www.MyFairCredit.com</U></A>; <A HREF="http://www.skslawyers.com" TARGET="_top" TITLE="http://www.skslawyers.com"><U>www.SKSLawyers.com</U></A></div> <bR> </td> </tr></table></body>