How Long Can You Wait to Dispute a Charge?

When an unexpected or incorrect charge appears on a financial statement, understanding dispute timeframes is important. Consumers have rights and protections for such errors, contingent on timely action. Acting quickly safeguards funds and ensures accurate financial records.

Regulatory Timelines for Disputing Credit Card Charges

Federal law, specifically the Fair Credit Billing Act (FCBA), outlines protections and timelines for disputing credit card billing errors. A “billing error” includes unauthorized charges, incorrect amounts, charges for unreceived goods or services, or a creditor’s failure to properly credit payments or refunds.

Under the FCBA, consumers have 60 days from the statement transmittal date to notify the creditor of a billing error. Written notification should be sent to the address provided on the statement for billing inquiries. While a phone call might resolve the issue, a written dispute within this 60-day window is necessary to trigger full FCBA protections.

For disputes related to undelivered or significantly different goods or services, some card networks or issuers may offer extended timeframes. Some may allow up to 120 days from the transaction date for a chargeback. Disputes over the quality of goods or services are not considered billing errors under the FCBA, unless the goods were not as described or accepted.

Regulatory Timelines for Disputing Debit Card and Bank Account Charges

The Electronic Fund Transfer Act (EFTA) provides protections for electronic fund transfers, including debit card transactions. The EFTA differentiates between reporting unauthorized transfers and other errors, with varying implications for consumer liability.

For unauthorized electronic fund transfers, such as those from a lost or stolen debit card, consumer liability is limited if reported promptly. If an unauthorized transfer is reported within two business days of learning about the loss or theft, liability is capped at $50. If reported after two business days but within 60 calendar days of the statement showing the first unauthorized transfer, liability can increase to $500.

A consumer must report an unauthorized electronic fund transfer on a periodic statement within 60 days of the financial institution’s transmittal to avoid unlimited liability for subsequent transfers. EFTA errors also include incorrect transfers, statement omissions, or computational errors. For these other errors, consumers have 60 days from the statement date to notify their financial institution.

Essential Steps for Initiating a Dispute

Before formally submitting a dispute, gather all relevant information and documentation. Identify the specific transaction, including its date, exact amount, and the merchant’s name. This precise identification helps your financial institution efficiently locate the transaction within their records.

Understand the reason for the dispute. Whether it is an unauthorized charge, duplicate billing, or unrendered service, articulating the specific issue strengthens your claim. Collect supporting documentation, such as receipts, order confirmations, or merchant correspondence. If fraud is involved, police reports can serve as valuable evidence. Maintaining detailed records of all communications and documents related to the transaction will be beneficial throughout the dispute process.

The Dispute Resolution Process

Once all necessary information is prepared, the formal dispute process begins by contacting the financial institution. This can be done via phone, an online portal, or certified mail. Many institutions acknowledge receipt of the dispute within 30 days and may provide a temporary credit while the investigation is underway.

Financial institutions must investigate the disputed charge within specific timelines. For credit card disputes, they have two billing cycles, or a maximum of 90 days, to complete their investigation. For debit card disputes, an investigation must be completed within 10 business days, though this can be extended to 45 or even 90 days under certain conditions, with provisional credit often provided during extended investigations. Upon conclusion, the financial institution will notify the consumer of their decision, explaining the findings and any corrections made. It is advisable to continue monitoring statements and retain all correspondence related to the dispute, and consumers may have the option to appeal a denied dispute.