Difference between revisions of "Disputing a Credit Card Bill"

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{{REVIEWEDPLS | reviewer = [http://www.leighco.ca/wendy-andersen Wendy Andersen], Digby Leigh & Company|date= October 2017}} {{Dial-A-Law TOC|expanded = money}}
{{REVIEWEDPLS | reviewer = [https://www.bcuc.com/ Anna Fung, KC], BC Utilities Commission|date= October 2019}} {{Dial-A-Law TOC|expanded = money}}
We use them all the time — to make purchases, shop online, and collect points. '''Credit cards''' are practical and convenient. Knowing your rights relating to credit cards can limit problems.  
You’re looking over your monthly credit card statement and you notice a mistake or an unauthorized charge. Learn your rights and what to do to dispute a credit card bill.


==Understand your legal rights==
==What you should know==


===Your rights are set out in a “cardholder agreement”===
===Your credit card bill must include certain information, including how to correct errors===
With a credit card, you get to buy things now in exchange for a promise to pay later. The credit card issuer (such as Visa or Mastercard) allows you to spend up to a certain amount. This is called the '''credit limit'''.  
Your credit card issuer sends you a '''monthly statement of account''' — they have to by law. The statement (or bill, as it’s called) must include certain information.


If you don’t pay within a certain period of time, the card issuer will charge you '''interest'''.  
The bill must include a description of each charge and transaction during the billing period. Importantly, it must explain how you can correct billing errors. There’ll typically be a number to call if you have issues.


The card issuer sets the credit limit, rate of interest, and other terms of the credit card in a contract, called the “'''cardholder agreement'''”.  
===The time frame to dispute a charge===
Check the credit card bill closely for the time window for you to dispute a charge. Typically, card issuers require you to let them know of any mistakes within 30 days of the end of the period the bill covers.


You must accept the terms of the cardholder agreement before using the card.
===You can dispute different types of transactions===
You can dispute various errors that may show up on your credit card bill:


===If there’s a change to your agreement===
* '''An unauthorized transaction'''. When someone who isn’t supposed to have access to your credit card makes a charge to your account.
Under [http://canlii.ca/t/8mh3 Canadian law], the card issuer can’t raise the credit limit on your credit card without your permission — you have to authorize the increase. It’s not enough that you tell a representative you want a higher credit limit. They need to confirm your consent in writing.  
* '''An incorrect charge'''. When you’re charged the wrong amount.
* '''An overcharge'''. When you’re charged an amount more than you agreed to.
For other changes to your cardholder agreement, the card issuer must inform you of the changes.  
* '''A double charge'''. When you’re charged twice.
* '''A missing or inaccurate refund'''. When you don’t get a refund, or get one for the wrong amount.


For a select few changes, they can inform you in your next monthly statement. For example, if the card issuer is decreasing the interest rate or any other charge.  
==Work out the problem==
Here are the steps to dispute a charge on your credit card bill.


For all other changes to your cardholder agreement, the card issuer must tell you about the change '''at least 30 days before''' the change takes effect.
===Step 1. Confirm the charge isn't valid===
===If you lose your credit card or it’s stolen===
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec99_smooth law in BC], your liability for a lost or stolen credit card is limited. Once you report a missing card to your credit card issuer, you don’t have to pay for anything bought with your card after you told them.


If someone uses your card '''before''' you report it as missing, the law '''limits your liability to $50''' — even if your agreement with the credit card issuer says differently. There is one exception to this rule — where your credit card is used at an automated teller machine (ATM) with your personal identification number (PIN). (Although it may seem convenient, giving away or sharing your PIN is never a good idea.) 
Make sure it’s a real mistake. For example, you may not recognize a transaction because it was posted late; or maybe the business uses more than one name. Check your files. Does the charge match your credit card receipts?


You can report the missing card to your issuer by phone or in writing.
===Step 2. Contact the business===


===If you receive a credit card you didn’t ask for===
The quickest way to get a charge off your credit card bill is to speak directly to someone at the business. Call and explain what’s happened. Give them any evidence you have (such as a receipt number). They’ll often be able to fix things on the spot and refund your money.
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec11_smooth law in BC], if you get a credit card you didn’t ask for, you don’t have to accept it. If you don’t accept it, you aren’t responsible for it. However, if you use an unsolicited credit card, you are telling the sender you’re accepting it, and you’re then responsible for what you buy with it.


==Common questions==
Create a paper trail — or an electronic trail — of the dispute. Keep a record of everything that happened. Save copies of all emails and letters.


===What if I let someone use my credit card, and they misuse it?===
===Step 3. Contact the credit card issuer===
As explained earlier, your liability for a lost or stolen credit card [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec99_smooth is limited] — except where your credit card is used at an automated teller machine (ATM) with your personal identification number (PIN). So let’s say you give your credit card and PIN to a friend to buy something at the store. Later, without your authorization, that person uses your credit card and PIN to get cash advances from an ATM. You’re responsible for this debt.


===Are bank and debit cards treated the same as credit cards?===
If you can’t solve the problem with the business — or if you suspect fraud or identity theft — contact the credit card issuer right away. The clock is ticking. There’s often a short time window to bring a dispute. (Your monthly statement will tell you if that’s the case.)
Bank and debit cards aren’t covered by the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec99_smooth BC law that limits credit card liability]. So you’re not protected by the $50 limit on liability if someone steals your bank or debit card and PIN and uses them to get money from your account.
==Get help==


===If you think you’ve been scammed===
Many financial institutions have dedicated phone lines just for credit card issues. Do your homework before you call. Have all your details ready, including the date and description of the charge.
If you think someone may have stolen your credit card information through a scam, contact the '''Canadian Anti-Fraud Centre'''.
:Toll-free: 1-888-495-8501
:Web: [http://www.antifraudcentre-centreantifraude.ca/ antifraudcentre-centreantifraude.ca]


===If you’re struggling with debt===
===Step 4. Pay your bill===
The '''Credit Counselling Society''' is a non-profit society that helps people better manage their money and debt.
 
:Toll-free: 1-888-527-8999
It may take your credit card issuer a few weeks to investigate. In the meantime, keep paying your credit card bill. Otherwise, you may be charged interest on the balance. You should get a refund if your dispute is successful.
:Web: [http://www.nomoredebts.org/ nomoredebts.org]
 
===Step 5. Contact an ombudsperson===
 
You may be wondering, ''ombudsperson'', what’s that? It’s a person who resolves complaints from the public. If you’re still having problems, and your credit card was issued by a bank, a further option is the bank ombudsperson. This is a bank employee who helps customers resolve their disputes with the bank.
 
Check your credit card issuer’s ombudsperson policy. The Canadian Bankers Association provides a contact list for the ombudsperson offices for most Canadian banks. [https://cba.ca/resolving-problems-with-your-bank Visit their website].
 
===Go deeper===
 
If you’re looking to go further, we have more detail on the steps to dispute a credit card bill. [https://www.peopleslawschool.ca/disputing-credit-card-bill/ See our in-depth coverage of this topic].
 
==Who can help==
===Helpful agencies===
Depending on the nature of the problem, you might try this agency.
 
:'''Better Business Bureau'''
:Receives complaints about local businesses that are members.
:Call 1-888-803-1222
:[https://www.bbb.org/ca/bc Visit website]
 
===Legal advice===
If a large dollar amount is involved, getting legal advice can help you decide what to do next.
 
:'''Lawyer Referral Service'''
:Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
:Call 1-800-663-1919
:[https://www.accessprobono.ca/our-programs/lawyer-referral-service Visit website]
 
:'''Access Pro Bono's Free Legal Advice'''
:Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
:Call 1-877-762-6664
:[https://www.accessprobono.ca/get-legal-help Visit website]
 
:'''People’s Law School'''
:See more options for free or low-cost legal help.
:[https://www.peopleslawschool.ca/options-legal-help Visit website]


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Latest revision as of 00:54, 7 November 2023

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Anna Fung, KC, BC Utilities Commission in October 2019.
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You’re looking over your monthly credit card statement and you notice a mistake or an unauthorized charge. Learn your rights and what to do to dispute a credit card bill.

What you should know

Your credit card bill must include certain information, including how to correct errors

Your credit card issuer sends you a monthly statement of account — they have to by law. The statement (or bill, as it’s called) must include certain information.

The bill must include a description of each charge and transaction during the billing period. Importantly, it must explain how you can correct billing errors. There’ll typically be a number to call if you have issues.

The time frame to dispute a charge

Check the credit card bill closely for the time window for you to dispute a charge. Typically, card issuers require you to let them know of any mistakes within 30 days of the end of the period the bill covers.

You can dispute different types of transactions

You can dispute various errors that may show up on your credit card bill:

  • An unauthorized transaction. When someone who isn’t supposed to have access to your credit card makes a charge to your account.
  • An incorrect charge. When you’re charged the wrong amount.
  • An overcharge. When you’re charged an amount more than you agreed to.
  • A double charge. When you’re charged twice.
  • A missing or inaccurate refund. When you don’t get a refund, or get one for the wrong amount.

Work out the problem

Here are the steps to dispute a charge on your credit card bill.

Step 1. Confirm the charge isn't valid

Make sure it’s a real mistake. For example, you may not recognize a transaction because it was posted late; or maybe the business uses more than one name. Check your files. Does the charge match your credit card receipts?

Step 2. Contact the business

The quickest way to get a charge off your credit card bill is to speak directly to someone at the business. Call and explain what’s happened. Give them any evidence you have (such as a receipt number). They’ll often be able to fix things on the spot and refund your money.

Create a paper trail — or an electronic trail — of the dispute. Keep a record of everything that happened. Save copies of all emails and letters.

Step 3. Contact the credit card issuer

If you can’t solve the problem with the business — or if you suspect fraud or identity theft — contact the credit card issuer right away. The clock is ticking. There’s often a short time window to bring a dispute. (Your monthly statement will tell you if that’s the case.)

Many financial institutions have dedicated phone lines just for credit card issues. Do your homework before you call. Have all your details ready, including the date and description of the charge.

Step 4. Pay your bill

It may take your credit card issuer a few weeks to investigate. In the meantime, keep paying your credit card bill. Otherwise, you may be charged interest on the balance. You should get a refund if your dispute is successful.

Step 5. Contact an ombudsperson

You may be wondering, ombudsperson, what’s that? It’s a person who resolves complaints from the public. If you’re still having problems, and your credit card was issued by a bank, a further option is the bank ombudsperson. This is a bank employee who helps customers resolve their disputes with the bank.

Check your credit card issuer’s ombudsperson policy. The Canadian Bankers Association provides a contact list for the ombudsperson offices for most Canadian banks. Visit their website.

Go deeper

If you’re looking to go further, we have more detail on the steps to dispute a credit card bill. See our in-depth coverage of this topic.

Who can help

Helpful agencies

Depending on the nature of the problem, you might try this agency.

Better Business Bureau
Receives complaints about local businesses that are members.
Call 1-888-803-1222
Visit website

Legal advice

If a large dollar amount is involved, getting legal advice can help you decide what to do next.

Lawyer Referral Service
Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
Call 1-800-663-1919
Visit website
Access Pro Bono's Free Legal Advice
Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
Call 1-877-762-6664
Visit website
People’s Law School
See more options for free or low-cost legal help.
Visit website
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