Overview

Unauthorized or incorrect charges can appear on credit-card bills, bank statements, or invoices. You have legal protections and practical steps to stop the charges, get provisional credits, and force an investigation. This guide explains how the rules work, what to do first, what evidence to collect, and where to escalate if a creditor won’t cooperate.

Key federal protections (high level)

  • Fair Credit Billing Act (FCBA): Protects consumers disputing credit card billing errors, including unauthorized charges, charges for goods/services not received, and incorrect amounts. The FCBA requires you to send a written dispute within 60 days after the creditor mails the first statement containing the error; creditors must generally acknowledge your dispute within 30 days and resolve it within 90 days. (See CFPB overview and the FCBA guidance.)
  • Electronic Fund Transfer Act (EFTA): Covers unauthorized transfers from checking accounts and limits consumer liability for lost/stolen debit cards and other electronic transfers. Liability limits depend on how quickly you report the problem. (See CFPB and FTC summaries.)

Note: Card networks and many issuers offer “zero liability” policies that can eliminate consumer responsibility beyond the statutory limits. Still, it’s important to follow dispute timelines to preserve these protections.

Step-by-step checklist (what to do first)

  1. Act quickly and stay organized
  • Mark the date you first see the error and the date the statement was mailed if it’s a credit account. Under the FCBA you generally have 60 days from the statement date that contains the charge to mail a written dispute.
  • For debit accounts, faster action reduces your potential liability under the EFTA (report within 2 business days whenever possible to limit exposure to $50; longer delays may increase liability up to $500 or more).
  1. Contact the merchant first (optional but useful)
  • If the charge is a clear merchant error (double billing, wrong amount, or subscription you canceled), call the merchant and request a refund. Take notes: who you spoke with, date/time, and what they promised.
  1. Dispute with the card issuer or bank in writing
  • For credit-card errors protected by FCBA, send a written dispute to the issuer’s billing-inquiry address (not necessarily the customer-service number). Use certified mail or another trackable method and keep copies.
  • Include: account number, date/amount of disputed charge, statement date, brief description of the error, and copies of supporting documents (receipts, prior statements, cancellation confirmations).
  1. Use online dispute forms when appropriate, but preserve proof
  • Many banks let you submit disputes online or by secure message. These are usually acceptable, but always save confirmation numbers and any correspondence.
  1. Watch the timelines and issuer responses
  • Creditors must acknowledge your written dispute within 30 days and investigate. They generally have 90 days to resolve (statutory timelines under the FCBA). If the issuer cannot complete the investigation, they must explain the delay and provide a provisional credit in some cases.
  1. Escalate if unresolved
  • If the issuer denies the dispute or doesn’t comply with timelines, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), and with your state attorney general or the Federal Trade Commission (FTC) for related fraud or identity-theft issues.

What to include in a dispute letter (short template)

  • Your name, mailing address, and account number
  • A clear statement: e.g., “I am writing to dispute an unauthorized charge of $XXX on my account dated MM/DD/YYYY.”
  • Why you believe the charge is wrong (e.g., unauthorized, duplicate, wrong amount) and what you want (credit, correction)
  • A list of enclosed documents (receipts, emails, proof of cancellation)
  • Date and signature

(For a ready-made template, see our step-by-step letter template.)

Documentation to collect

  • Original statements showing the charge
  • Receipts and order confirmations
  • Cancellation emails or screenshots
  • Correspondence with the merchant or bank (notes, chat transcripts)
  • Police or FTC Identity Theft Affidavit if you’re the victim of identity theft

Proof matters. In my practice I’ve seen disputes resolved faster when consumers provide clear, dated evidence. Digital screenshots with timestamps, order numbers, and conversation transcripts are especially persuasive.

Differences: credit-card disputes vs. bank/debit disputes

  • Credit cards (FCBA): Stronger consumer protection process; creditor generally cannot collect the disputed amount while investigating; adverse credit reporting for the disputed portion is restricted during the dispute.
  • Debit cards/checking accounts (EFTA): Faster action required to limit liability. Banks may provisionally restore funds while investigating, but your liability can rise if you delay reporting.

Common outcomes and timelines

  • A provisional credit: Many banks will issue a temporary credit while they investigate. Keep documentation of this credit.
  • Charge reversal or correction: If the merchant or issuer finds the charge unauthorized, you’ll receive a permanent credit.
  • Denial: If the creditor validates the charge, ask for the documentation they relied on and consider escalating.

When a dispute is denied—next steps

  1. Ask for the issuer’s written explanation and copies of evidence used to justify the charge. Under FCBA you may be entitled to detailed documentation.
  2. Reopen the dispute with additional documentation if available.
  3. File a complaint with the CFPB at consumerfinance.gov/file-a-complaint/ and your state attorney general. (CFPB)
  4. If identity theft is involved, file a report at IdentityTheft.gov and consider a police report and fraud alert or credit freeze with the credit bureaus (FTC).

How unauthorized charges affect credit reports

While an active dispute is pending under the FCBA, creditors generally should not report the disputed amount as delinquent to credit bureaus. If you find negative reporting related to a disputed charge, insist the creditor correct it; if they refuse, file a dispute with the credit bureaus and escalate to the CFPB (see: How to Dispute a Billing Error: A Step-by-Step Guide).

When to involve outside help

  • If a merchant repeatedly refuses to correct obvious billing errors
  • If a creditor ignores FCBA timelines or fails to provide required disclosures
  • If the disputed amount is large and your attempts to resolve it fail

Options include filing complaints with federal/state agencies, hiring a consumer-attorney, or using small-claims court for smaller amounts. For guidance on escalating with your bank, see our article on how to escalate a billing dispute with your bank.

Practical tips to prevent future unauthorized charges

  • Archive cancellation confirmations and check for recurring charges monthly
  • Use virtual card numbers or one-time card numbers for online purchases when your issuer offers them
  • Set account alerts for charges over a set amount
  • Use strong passwords and enable multi-factor authentication on financial accounts

Real-world examples (brief)

  • Subscription charge reversal: A client found monthly $9.99 charges they never authorized. Acting promptly, we sent a dispute and copies of the cancellation confirmation; the issuer issued a permanent credit within 45 days.
  • Duplicate billing corrected after escalation: A small-business client was double-billed for a software vendor; documentation and a CFPB complaint led to a full refund plus interest.

Authoritative resources and where to read more

  • Consumer Financial Protection Bureau (CFPB) — dispute process and how to file complaints (https://www.consumerfinance.gov) (CFPB)
  • Federal Trade Commission (FTC) — reporting fraud and identity theft (https://www.identitytheft.gov) (FTC)
  • Text of the Fair Credit Billing Act and summaries available via government sites (FCBA)

Internal resources on FinHelp.io

Common mistakes to avoid

  • Waiting past the 60-day FCBA window for credit-card disputes or delaying reporting debit-card fraud past two business days
  • Relying only on phone calls without keeping records
  • Assuming a small charge isn’t worth disputing—small recurring errors add up over time

Professional disclaimer

This article is educational and does not replace personalized legal or financial advice. For case-specific recommendations, consult a licensed attorney or consumer law specialist. If you believe you are a victim of identity theft, file complaints with the FTC and your bank immediately.

Final takeaway

Customer billing errors and unauthorized charges are stressful but manageable when you know the law and follow a clear process: act fast, document everything, dispute in writing, track timelines, and escalate to regulators when needed. Protecting your money is both a legal right and a practical habit.