Credit Card Rights

• Author: Daniel A Edelman
• Profession: Lawyer
• Pages: 27-33

27

Credit Card Rights

CHAPTER

8

Credit Billing

The Truth in Lending Act (TILA) gives consumers the right to challenge billing errors and raise claims and

defenses in credit card transactions.

Under the Fair Credit Billing provisions of TILA, within sixty days after receiving a statement of

account first showing a charge, the consumer has the right to send a written notice to the creditor at the

address given on the statement for disputes/inquiries (not the payment address) contesting the charge. The

notice cannot be on a payment stub. It must give the account name and number, state that there has been

an error in the bill and the amount of the error, and provide an explanation (15 U.S.C. §1666(a)).

Because of this limited period, it is absolutely essential that consumers review their credit card state-

ments promptly upon receipt, check for any unauthorized or unidentifiable items, and complain about

any such items in writing.

Billing errors include the following:

•that the item is not the consumer’s;

•that the amount is wrong;

•that the consumer does not recognize the merchant name or transaction and wants documentary

evidence of the charge;

•that goods or services were not accepted or not delivered in accordance with the agreement;

•failure to reflect payment/credit; and

•computational or accounting errors.

Billing errors do not include defects in accepted goods or services performed. The billing-error proce-

dure also does not allow complaints about contract terms or disclosures. You may have other rights with

respect to such problems, but they are not covered by the Fair Credit Billing provisions.

Some Internet sites and credit repair organizations advise consumers to send billing-error notices

complaining about contract terms or disclosures. This is not sound advice.

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