Once in a while, you might find an error on your ATM, debit, or credit card statement. You could lose the right to challenge the error if you don't act quickly.
Know your rights and obligations if you discover a mistake.
If you find an error on an ATM statement or debit receipt, and your physical debit card itself isn't lost or stolen, you have 60 days from the financial institution's transmittal of the statement to notify the bank. Always notify by phone first and follow up with a letter. If you don't notify the bank within 60 days, it has no obligation to respond—which means you're probably out of luck.
If you notify the bank of the error within 60 days, it has ten business days (20 business days for new accounts) to investigate the problem and inform you of the result. If the bank needs more time, it can sometimes take up to 45 days or 90 days.
You must notify a credit card company of any billing error no later than 60 days after it transmitted the first statement that reflects the alleged error. Otherwise, the credit card company has no obligation to investigate or respond.
Notify the company in writing by sending a letter or going online, if available, and enclose copies of supporting documents, like receipts showing the correct amount of the charge. If you decide to send a letter, be sure to send it to the address designated for this purpose. Look on your statement, your credit card agreement, or online to get the proper address. (You generally get more legal protections with a letter, so it's a good idea to send a written notification.)
These procedures apply only to billing errors, which include:
The credit card company must respond in a timely manner. The credit card company must acknowledge receipt of your dispute notice within 30 days, unless it corrects the bill within that time. Then, within two billing cycles—but not more than 90 days—the company must either correct the error or explain why it believes the amount on the statement is correct. If the company doesn't comply with these time limits, it forfeits up to $50 of any amount you might owe.
What happens to the charge during the investigation? During the two-billing-cycle/90-day period, the credit card company can't report the amount as delinquent to a credit bureau or other creditors. But it can apply the disputed amount to your credit limit and charge interest on the amount. Of course, if the company later agrees that you were correct, it must drop these interest charges.
If the company doesn't remove the disputed charge, dispute the charge again. If the company sends you an explanation but doesn't correct the error, and you're not satisfied, you have ten days to send another notice explaining why you still refuse to pay. If the company then reports your account as delinquent, it must also report that you believe you don't owe the money.
For more on credit and debit cards, as well as other information you need to restore your finances to good health, read Solve Your Money Troubles: Debt, Credit & Bankruptcy, by Amy Loftsgordon and Cara O'Neill (Nolo).
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