Quick summary
A billing error occurs when a bill, invoice, or statement contains an incorrect charge — including double charges, unauthorized transactions, charges for services not rendered, or incorrect amounts. This guide walks through practical, documented steps you can take to dispute a billing error, timelines to respect, and escalation choices if the provider or creditor doesn’t respond. It also explains where federal protections apply and where state or industry rules may differ.
Why document everything? (short primer)
Every successful dispute I’ve handled started with solid paperwork. Documentation gives you leverage and creates a timeline the company — and, if needed, a regulator or court — can verify. Even short notes from a phone call with a date, time, and name of the representative can matter.
Step-by-step: How to dispute a billing error
Follow these steps in order. In my 15+ years helping clients, following the sequence below shortened resolution times and improved outcomes.
- Collect and organize evidence
- Account statements showing the error (highlight the line item).
- Contracts, receipts, service agreements, cancellation confirmations, work orders, and previous bills.
- Screenshots of error pages or subscription settings.
- Email threads or letters with the provider.
- Notes from phone calls (date, time, representative’s name, summary).
- Confirm the type of error and the rules that apply
- Credit card billing errors: the Fair Credit Billing Act (FCBA) gives protections and specific timing (see below). For an overview, see our internal piece on the Fair Credit Billing Act (FCBA).
- Debit/ACH/ATM errors: covered under the Electronic Fund Transfer Act (Regulation E); liabilities and timelines differ from credit cards.
- Medical bills: separate rules, complex itemizations, and frequent coding mistakes — see our guide on medical billing errors and credit.
- Begin with the billing entity — in writing
- Why written? Written notices create a paper trail and often trigger formal internal dispute processes. Send via email or certified mail, return receipt requested, if possible.
- Include: account number, date of the statement, specific charge(s) in dispute with the amount, concise explanation of why you believe it’s wrong, copies (not originals) of supporting documents, and a clear request (refund, correction, or statement retraction).
- Keep a plain, professional tone: facts, dates, and documents matter more than emotion.
- Use a dispute template or letter
- A structured letter ensures you include the required details and reduces back-and-forth. For a ready template and a sample letter you can adapt, see our detailed dispute letter template.
- Track timelines and follow up
- Credit card errors: under the FCBA you typically must send a written dispute to the card issuer within 60 days of the date the creditor mailed (or delivered) the statement containing the error. The issuer must acknowledge receipt within 30 days and resolve within two billing cycles (but not more than 90 days) in most cases. (See the CFPB and FTC pages linked below.)
- Debit card/electronic transfer errors: under the Electronic Fund Transfer Act (Regulation E), you generally must report an error promptly; specific liability limits depend on how quickly you report (e.g., reporting within 2 business days limits loss for unauthorized transfers to $50, but waiting longer increases potential liability).
- If you don’t hear back within the timeframe the company states, follow up in writing and reference your prior notice and dates.
- If the company refuses or ignores you: escalate
- For bank/card disputes, contact your card issuer or bank’s dispute unit and ask about chargebacks (a merchant dispute handled by the card network).
- For utilities, telecom, or other regulated industries, file a complaint with the state public utility commission or the state attorney general.
- File a complaint with the Consumer Financial Protection Bureau (CFPB) for unresolved financial disputes (https://www.consumerfinance.gov/complaint/).
- File a complaint with the Federal Trade Commission (FTC) for broader consumer protection issues (https://www.consumer.ftc.gov/).
- If credit reporting is affected, dispute the entry with the bureaus
- If the billing error led to a negative mark on your credit report, you must dispute the inaccurate item with each credit bureau (Equifax, Experian, TransUnion). The bureaus have online dispute portals and are required to investigate under the Fair Credit Reporting Act (FCRA). Keep copies of your dispute and the evidence you submitted.
- When to consider legal help
- For large sums, repeated refusals, identity theft, or when time-sensitive rights are at risk, consult an attorney who specializes in consumer law. If you carry insurance that covers legal help for consumer disputes, review the policy.
Timelines at a glance (common rules)
- FCBA (credit card billing errors): written dispute within 60 days of the billing statement containing the error; issuer must acknowledge within 30 days and usually resolve within two billing cycles (not more than 90 days). See CFPB guidance.
- Reg E (debit/ATM/electronic transfers): liability depends on how quickly you report; report unauthorized transfers promptly.
- State/industry: utilities, healthcare, and other providers may have unique internal timelines — always check the provider’s billing policy and your state consumer protection office.
Documentation checklist (what to send)
- A clear cover letter or completed dispute form with account and statement details.
- Copies of the disputed statement pages (highlighted).
- Proof of payment or cancellation (if the error is a recurring fee you canceled).
- Copies of contracts, receipts, or service confirmations.
- Communications (emails, chat logs).
- Any relevant medical records or itemized billing codes for medical disputes.
Common mistakes to avoid
- Waiting too long: many protections have strict time limits.
- Relying only on phone calls: follow up in writing and keep copies.
- Overlooking related charges: a small fee may indicate a larger billing or subscription problem.
- Deleting or ignoring notices that could start dispute timelines (collections letters, final notices).
Real-world examples (short)
- Internet overbilling: I helped a client assemble the cancellation email and billing statements showing a one-month post-cancellation charge. The provider reversed the charge after receiving the written dispute and proof.
- Medical coding error: a client faced a surprise $1,800 charge after a visit. We collected the itemized bill and matched CPT codes to the billed services; after correction, the provider reduced the bill by more than 60%.
Escalation options and complaints resources
- CFPB: submit a complaint at https://www.consumerfinance.gov/complaint/ or call to see complaint process timelines (good for credit card and bank disputes).
- FTC: consumer guidance and complaint portal at https://www.consumer.ftc.gov/ (useful for scams and billing schemes).
- State Attorney General and Public Utility Commissions: for regulated industries like utilities and telecommunications.
How disputes affect your credit report
If a billing error results in a late payment or collection account, it can appear on your credit report and damage your score. After you dispute, furnish the credit bureaus with documentation and ask for a reinvestigation. If the bureaus correct the information, they must notify you and the creditor. For medical-specific billing and credit issues, review our article on how medical billing errors impact your credit report.
Tips that save time and yield results
- Start with the smallest win: get the charge corrected or removed quickly, then pursue refunds.
- Send disputes by certified mail or an authenticated email so you can prove delivery dates.
- Use clear subject lines like “Billing dispute — account #12345 — disputed charge $XX.XX — DATE.”
- Snapshot evidence: screenshots of account dashboards can show cancellation times, plan changes, and error messages.
Frequently asked questions
Q: How long will the dispute take?
A: It varies. Under the FCBA, issuers usually must acknowledge within 30 days and resolve within two billing cycles (often not more than 90 days). Bank investigations and regulatory complaints may take longer.
Q: Can I withhold payment while disputing?
A: For credit card billing errors under FCBA, you can withhold payment on the disputed amount while the issuer investigates; you should pay any undisputed balance to avoid interest and late fees. For services billed to other account types, consult your contract and state rules.
Q: Will filing a dispute hurt my credit?
A: Filing a dispute itself doesn’t hurt your credit score; however unresolved late payments or collections that predate the dispute can harm your score until corrected.
Final checklist before you send the dispute
- Did you include account number and exact statement date?
- Are the disputed charges clearly circled or highlighted on copies?
- Did you attach supporting documents and copies (not originals)?
- Did you keep a copy of everything you sent and proof of delivery?
Sources and further reading
- Consumer Financial Protection Bureau (CFPB) — Disputes and complaints: https://www.consumerfinance.gov/
- Federal Trade Commission — Disputing billing errors: https://www.consumer.ftc.gov/articles/0219-disputing-billing-errors
- Our internal resources: Dispute letter template, Fair Credit Billing Act (FCBA), Medical billing errors and credit
Professional disclaimer: This article is educational and informational only and does not constitute legal or financial advice. For personalized guidance about a specific billing dispute, consult a licensed consumer attorney or a qualified financial professional.
Author note: In my practice, disputes resolved fastest when clients organized evidence first and used a concise written dispute that referenced applicable rules and dates. If you want help drafting a dispute letter, use our template above and adapt it to your situation.
