In order to keep your credit report accurate and up to dare, it is important to carefully read through your credit-card statement each month to make certain that any transactions are accurate and that any other charges, such as finance charges, late or over-the-limit fees, are correct. Billing errors and unjustified fees can end up costing you more than money, as this information is ultimately reported to the Credit Reporting Agencies and affects your credit score.

Luckily, there is a law to help you if you do discover an error in your monthly statement. The Fair Credit Billing Act applies to credit card and charge accounts as well as to overdraft checking. You can use this act to defend yourself if you encounter any billing errors, unexpected charges, unauthorized use of your account, and goods or services that were charged to your account but were either not received or not provided as promised.

In order to protect your rights when it comes to a credit card dispute, follow these if you perceive a problem:

1. Write to your credit card issuer or bank within 60 days from the date that the first bill containing the disputed charge was mailed to you. Even if more than 60 days has passed since you were originally billed for the item, you still may be able to dispute the charge if you only recently became aware of the problem, but be certain to explain why the error just came to your attention.

2.  Clearly state your name, account number, date and amount of the charge in dispute and a thorough explanation with all facts to support your dispute of the charge.

4.  Make a copy of your letter and any supporting documents that you choose to include.  If you do send any supporting documents, such as receipts, previous letters sent to them or to the provider of the disputed goods or services, make certain to keep the originals and send copies.

3.  Send your letter and any supporting documents by certified mail, with a return receipt requested, to the address provided on the bill for any billing questions or concerns.  Do not simply send the letter with your payment.

The credit card issuer or bank is required to acknowledge your letter in writing within 30 days after they receive it, and they must conduct an investigation within 90 days.  While you are waiting for the bill to be investigated, you do not have to pay the amount in dispute. The creditor or credit card issuer is not allowed to take any action to collect this disputed amount, to report the amount as being delinquent or to close or restrict your account in any way during the investigation period.

Once the credit card company or bank finishes its investigation, they must notify you of the results.  If they determine that there was an error or that you do not owe the amount in question, then the credit card issuer or bank is required to credit your account and remove any finance charges or late fees relating to the amount that was disputed. If they determine that any amount is still owed, you have the right to a full explanation and to copies of any documents that prove you do owe the money. You must be notified in writing of what you owe and why. Unfortunately, if they find that the charge is valid, you will owe that amount plus any applicable finance charges.

This is yet another good reason to keep all receipts and records at least until you receive your monthly credit card statement.  That way, if you do have a billing dispute, you will have the documentation to support it.