can a paid credit card bill be disputed within 59 days? Does Paying in full waive rig
Jun 1, 2007, 2:57 pm
#1
Original Poster
Join Date: Nov 2000
Location: New York City, United States.
Posts: 2,629
can a paid credit card bill be disputed within 59 days? Does Paying in full waive rig
I know billing summary says "to preserve your rights under federal law we must hear from you in writing no later than 60 days after we sent you the first bill on which the ... appeared.
but it says "special rule for credit card purchases"
if you have a problem..... you may not have to pay the "remaining amount due on the services or goods.
My concern is specific to Citibank.
Citi is not very customer service oriented., With Amex it has never been a problem but I don't know if thats at the issuers discretion. I want to know if its federal law consumer protection.
I got a lot of possible problematic charges right before my bill closed.
I want to pay within grace period to avoid any interest charges, but I don't want to lose the rights to dispute with 60 days.
My question is can a paid credit card bill be disputed within 59 days?
but it says "special rule for credit card purchases"
if you have a problem..... you may not have to pay the "remaining amount due on the services or goods.
My concern is specific to Citibank.
Citi is not very customer service oriented., With Amex it has never been a problem but I don't know if thats at the issuers discretion. I want to know if its federal law consumer protection.
I got a lot of possible problematic charges right before my bill closed.
I want to pay within grace period to avoid any interest charges, but I don't want to lose the rights to dispute with 60 days.
My question is can a paid credit card bill be disputed within 59 days?
Jun 1, 2007, 9:16 pm
#3
In memoriam
Join Date: Jan 2006
Posts: 4,020
Your position is stronger if you have not paid, but paying does not eliminate your rights.
The key is notify the card company in writing (mail only) at the billing error address on your statement (not the address where you send payment) with sixty days of the time the disputed bill was MAILED to you (not when received). And be sure to be able to prove you sent the letter, certified mail, return receipt requested. Or, if you have some time, enclose a check which the bank is rather likely to cash, with a notation, enclosed with billing error letter to xyz bank re account # 000.
The key is notify the card company in writing (mail only) at the billing error address on your statement (not the address where you send payment) with sixty days of the time the disputed bill was MAILED to you (not when received). And be sure to be able to prove you sent the letter, certified mail, return receipt requested. Or, if you have some time, enclose a check which the bank is rather likely to cash, with a notation, enclosed with billing error letter to xyz bank re account # 000.
Jun 2, 2007, 8:16 am
#4
Join Date: Dec 2004
Posts: 7,905
Paying your bill does not waive your right to dispute a billing error. Also, I thought the 59 days starts from the day you receive the bill, but apparently that has changed. I can tell you first hand, I have successfully disputed charges more than 60 days after the bill wa mailed.
By the way, Citi recovered about $3000+ dollars for me in a difficult dispute, and I found them outstanding.
By the way, Citi recovered about $3000+ dollars for me in a difficult dispute, and I found them outstanding.
Jun 2, 2007, 10:07 am
#5
Join Date: Dec 2003
Location: Clearwater, FL
Posts: 1,006
I always thought that the 60 days started from the date of the bill/statement on which the disputed charge appeared. As an FYI, in the few times that I've challenged a charge, I just called the credit card company and verbally challenged the item. I guess I was lucky that I didn't have to put my challenge in writing which I admit, is really the way to go to protect your rights.
Jun 2, 2007, 11:47 pm
#6
In memoriam
Join Date: Jan 2006
Posts: 4,020
Paying your bill does not waive your right to dispute a billing error. Also, I thought the 59 days starts from the day you receive the bill, but apparently that has changed. I can tell you first hand, I have successfully disputed charges more than 60 days after the bill wa mailed.
Jun 3, 2007, 10:49 am
#7
Join Date: Jan 2006
Location: ELP
Programs: AA EXP/LT PLAT, Marriott Titanium/LT PLAT
Posts: 4,120
Paying your bill does not waive your right to dispute a billing error. Also, I thought the 59 days starts from the day you receive the bill, but apparently that has changed. I can tell you first hand, I have successfully disputed charges more than 60 days after the bill wa mailed.
By the way, Citi recovered about $3000+ dollars for me in a difficult dispute, and I found them outstanding.
By the way, Citi recovered about $3000+ dollars for me in a difficult dispute, and I found them outstanding.
I have never had a problem with Citi in my 7+ yrs of doing business with them and I always pay my bill "IN FULL" so I am considered a deadbeat
I did have issues with AMEX....but since then I have not used them....
By no means am I a CITI apologist, but I have the "right" fit with them....
Jun 5, 2007, 4:05 am
#8
Join Date: Oct 2003
Programs: AA lifetime Gold, SPG
Posts: 442
I have always called to dispute charges, which seems to work OK. The CSR puts the dispute into the system, and then says that I am not required to pay the disputed charge while in dispute (they credit it back or do something like that). Then they send a letter which I am suppose to sign and return if it gets to that point --- the letter basically summarizes my dispute that they took over the phone. If it is fraud related, then they will definitely send the letter for me to sign detailing the fraud.
I have questioned charges accidentally (ones I've forgotten, weird parent company name, etc). They first credit back the disputed item, then when it is verified, they recharge my account for the item. Have not seen any finance charges accrued even for these error disputes, which is nice.
I have always promptly called (within billing cycle w/ the dispute) though. I don't know about the 60 days -- but it doesn't hurt to call and put in a dispute.
I have questioned charges accidentally (ones I've forgotten, weird parent company name, etc). They first credit back the disputed item, then when it is verified, they recharge my account for the item. Have not seen any finance charges accrued even for these error disputes, which is nice.
I have always promptly called (within billing cycle w/ the dispute) though. I don't know about the 60 days -- but it doesn't hurt to call and put in a dispute.
Jun 5, 2007, 8:58 am
#9
Join Date: Jan 2007
Posts: 5,679
I have always called to dispute charges, which seems to work OK. The CSR puts the dispute into the system, and then says that I am not required to pay the disputed charge while in dispute (they credit it back or do something like that). Then they send a letter which I am suppose to sign and return if it gets to that point --- the letter basically summarizes my dispute that they took over the phone. If it is fraud related, then they will definitely send the letter for me to sign detailing the fraud.
I have questioned charges accidentally (ones I've forgotten, weird parent company name, etc). They first credit back the disputed item, then when it is verified, they recharge my account for the item. Have not seen any finance charges accrued even for these error disputes, which is nice.
I have always promptly called (within billing cycle w/ the dispute) though. I don't know about the 60 days -- but it doesn't hurt to call and put in a dispute.
I have questioned charges accidentally (ones I've forgotten, weird parent company name, etc). They first credit back the disputed item, then when it is verified, they recharge my account for the item. Have not seen any finance charges accrued even for these error disputes, which is nice.
I have always promptly called (within billing cycle w/ the dispute) though. I don't know about the 60 days -- but it doesn't hurt to call and put in a dispute.
The bennefits to a written dispute is as follows:
1) Called disputes are not covered by the Fair Credit Billing Act. If the creditor screws you over and 60 days have passed you have no legal remedy to the situtation. End of story.
2) If the creditor does not reply, in writing, within 30 days to your dispute you automatically win $50, even if the dispute doesn't go your way.
3) Since it's in writting and binding you usually get very experienced CSRs or their managers.
4) I think you get better outcomes. I've seen the decision over the phone from the CSR and Managers overturned. No one wants to write the dumb letter that appears on 60 minutes or dateline.
The only con to the system is you don't get instant results. But I think on the whole you get better results.
Jun 5, 2007, 11:52 am
#10
Join Date: Jul 2003
Location: Hou, Tx
Posts: 314
Learn something new everyday on FT. I wonder how do I get the $50.00 coming to me?
Jun 5, 2007, 3:16 pm
#11
In memoriam
Join Date: Jan 2006
Posts: 4,020
Just ask for it. Actually, they are supposed to credit it automatically, but, guess what ... 
By the way, failure to deal with a properly made billing error allegation within the time limits can get you some big bucks if you want to go to Court. I have seen several folks get 10-15K for this sort of thing. Gotta try and keep the credit card companies in line.
By the way, failure to deal with a properly made billing error allegation within the time limits can get you some big bucks if you want to go to Court. I have seen several folks get 10-15K for this sort of thing. Gotta try and keep the credit card companies in line.
Jun 6, 2007, 2:09 pm
#13
In memoriam
Join Date: Jan 2006
Posts: 4,020
A long legal analysis is, IMHO, beyond what we need in FT. So, I won't provide one. If you want to know more check the FTC web site or go to your local law school library and take a look at the National Consumer Law Center's book on Truth in Lending. http://www.consumerlaw.org/publicati...ng_truth.shtml Or take a look at "What Every Credit Card User Needs to Know" (out of print, but probably at your local library). http://www.amazon.com/What-Every-Cre...1160760&sr=8-1
Basically, the Truth in Lending Act incorporates some weird and complex rules about how billing error disputed amounts are allocated depending on whether paid or not paid when disputed.
Best thing, do not pay before disputing in writing. If you already paid, no reason not to go ahead and dispute, if you see a problem.
Basically, the Truth in Lending Act incorporates some weird and complex rules about how billing error disputed amounts are allocated depending on whether paid or not paid when disputed.
Best thing, do not pay before disputing in writing. If you already paid, no reason not to go ahead and dispute, if you see a problem.
Jun 6, 2007, 8:32 pm
#14
Join Date: Feb 1999
Location: Denver CO
Posts: 3,682
I wasn't looking for a long revew but a concise recap would be helpful since all the consumer advice I've seen says that a proper, timely disputed item puts the matter under review-how would paying or not paying impact that?
If indeed there is a difference, and there may be, is it a difference affecting every dispute or only certain circumstances (eg. allocation of disputed items, which seems to require that there is more than one)?
If indeed there is a difference, and there may be, is it a difference affecting every dispute or only certain circumstances (eg. allocation of disputed items, which seems to require that there is more than one)?
Jun 7, 2007, 3:21 pm
#15
In memoriam
Join Date: Jan 2006
Posts: 4,020
Might be a good idea here to take a look at the book suggested above which covers this in detail. The quote below covers some of this.
From: "What Every Credit Card User Needs to Know"
"What if you make just a partial payment on your credit card account? Suppose you pay $100 of a $200 total on your monthly statement? And you later dispute a $120 charge on your account, after you paid the hundred bucks?
Here are the rules the credit card company is supposed to follow in applying the payment for the purpose of figuring out if you have paid for a purchase you have complained about.
Payment goes first to any late charges on your account, with the oldest late charges being paid off first. Then your money goes to pay off finance [interest] charges, again, with the oldest being paid off first. Next, your payment is applied to any other charges on the account. Again, the oldest are paid off first.
What happens if two or more charges are billed to your account on the same day is not clear from the Fed's regulations.
If you have charged two or more items on the same charge slip, payment would, according to the Fed, be applied to each individual charged item in the same proportion the dollar amount of the unsatisfactory purchase bears to the total amount charged on the slip. For Example: You go out to dinner with a pal and charge the tab for the $120 meal (you old sport, you). Your meal was okay. Your pal gets food poisoning from the steak tartare. You pay your entire bill when it comes in from the credit card company except for $60 to cover the cost of the meal that poisoned your pal. Then, you complain to the restaurant [that was a mistake!, don't wait to scream!].
Here's where the problem with the rules comes in. You can only refuse to pay $30 of the $60 that the poisoned meal cost. Under the Fed rules the money you paid was applied not $60 to the good meal and nothing to the poisoned meal as you might reasonably expect. Instead, it was applied $30 to your meal, and $30 to the poisoned meal.
This is pretty silly. There is no reason the Federal Reserve Board could not have adopted a rule that would have applied all your $60 payment to the good meal and none of it to the bad meal. The credit card companies think that the Fed's present rule is better for them, though, and that may just be the reason it was adopted.
Fortunately, if you follow this book's advice you will not have any problem with this.
Complain to the seller or the credit card company before you pay anything on your account. Then you are protected from this foolish application of the Federal Reserve Bank Board's rules."
From: "What Every Credit Card User Needs to Know"
"What if you make just a partial payment on your credit card account? Suppose you pay $100 of a $200 total on your monthly statement? And you later dispute a $120 charge on your account, after you paid the hundred bucks?
Here are the rules the credit card company is supposed to follow in applying the payment for the purpose of figuring out if you have paid for a purchase you have complained about.
Payment goes first to any late charges on your account, with the oldest late charges being paid off first. Then your money goes to pay off finance [interest] charges, again, with the oldest being paid off first. Next, your payment is applied to any other charges on the account. Again, the oldest are paid off first.
What happens if two or more charges are billed to your account on the same day is not clear from the Fed's regulations.
If you have charged two or more items on the same charge slip, payment would, according to the Fed, be applied to each individual charged item in the same proportion the dollar amount of the unsatisfactory purchase bears to the total amount charged on the slip. For Example: You go out to dinner with a pal and charge the tab for the $120 meal (you old sport, you). Your meal was okay. Your pal gets food poisoning from the steak tartare. You pay your entire bill when it comes in from the credit card company except for $60 to cover the cost of the meal that poisoned your pal. Then, you complain to the restaurant [that was a mistake!, don't wait to scream!].
Here's where the problem with the rules comes in. You can only refuse to pay $30 of the $60 that the poisoned meal cost. Under the Fed rules the money you paid was applied not $60 to the good meal and nothing to the poisoned meal as you might reasonably expect. Instead, it was applied $30 to your meal, and $30 to the poisoned meal.
This is pretty silly. There is no reason the Federal Reserve Board could not have adopted a rule that would have applied all your $60 payment to the good meal and none of it to the bad meal. The credit card companies think that the Fed's present rule is better for them, though, and that may just be the reason it was adopted.
Fortunately, if you follow this book's advice you will not have any problem with this.
Complain to the seller or the credit card company before you pay anything on your account. Then you are protected from this foolish application of the Federal Reserve Bank Board's rules."
Last edited by biggestbopper; Jun 7, 2007 at 5:36 pm