Ever purchased a new 4K TV that turned out to be broken? Or maybe that fitness tracker you bought your partner failed to work? Perhaps you've been charged twice for a singular product? You'll be relieved to know that if you bought these items with a credit card, you're protected under the Fair Credit Billing Act. This act lets you contest payments on poor-quality items, damaged goods, or erroneously billed products. Intrigued to know more? Let's take you through how you can dispute a charge and win.
The first thing you should do is contact the merchant and try to resolve the problem. More often than not if you approach them politely and respectfully, they'll be more than willing to address the issue. Indeed, many large retailers tend to lean towards generosity in their customer service, especially within a certain time frame and under regular circumstances.
You have more chances of winning if you act promptly and reasonably. Should the first support representative fail to resolve the issue, requesting to speak with a higher-up can be a fruitful strategy. Document every interaction-note down the names of the representatives you communicated with, the dates and times, for future references if necessary.
If discussions with the merchant are unfruitful, it's time to write. Compose a brief, detailed letter outlining your dispute and send it to the merchant and copies to your credit card company-this forms evidence of your attempts to reach a resolution.
Concurrently, draft a letter to your credit card company to inform them of the disputed charge. The Fair Credit Billing Act requires you to do this within 60 days after the disputed bill was sent. Include your account number, the closing date of the bill, a detailed description of the disputed item, and why you withheld payment. Include copies of your complaint letters and any other supporting evidence to bolster your case. Be sure to send it via certified mail.
Your issuer might allow you to dispute a specific charge over the phone, or via a form sent to you. Even though you're contesting a charge, it's crucial to keep up with your card's other payments and interest. Failing to do so could cause interest accrual or late charges.
At this stage, all that's left is to await the outcome. Many card companies offer temporary credit during the dispute. However, this isn't mandatory, so don't bank on it happening. The card issuer will then contact the merchant for their version of events. If they side with you, you're in for a full refund. But if they don't, you'll pay for the disputed item and any added finance charges.
There are exceptions to the Fair Credit Billing Act, though. Sales over $50 and purchases within your home state or within 100 miles of your billing address qualify. This makes online or phone orders exempt, and withholding payment depends on state law. Few issuers enforce these limits, as many are eager to retain your business given the industry's tough competition.
If you ever find yourself needing to dispute a charge, remember you may well have more rights and options available than you discerned. Tour top priority should be to act swiftly and responsibly. Sort the dispute out courteously with the merchant, and escalate it to your card issuer if you must.
If you suspect fraudulent activity, contact your card issuer immediately to terminate or cancel your card outright.