The Fair Credit Billing Act states that a consumer has 60 days after the receipt of a bill to dispute it in letter form. They must send it to the address of the customer service department usually located on the back of the billing statement. They must include their name, account number, and why they believe the bill is in error. Copies of receipts of other purchases made within the period in question may be helpful in clarifying the billing error. As with all correspondence, keep a copy for your file.

Within 30 days, the creditor must respond with some explanation of the charge. The consumer cannot be reported to the credit bureau as a delinquent until the dispute is settled. The creditor can, however, continue to add finance charges on the amount.

This act also allows consumers to withhold payment for faulty or defective goods or services that were bought with the credit card.

To read The Fair Credit Billing Act in its entirety, visit
http://www.fdic.gov/regulations/laws/rules/6500-500.html#6500chap4cb