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No computer is more accurate, than the person inputting it's data. It doesn't recognise when clerk A has given you Mrs. X's charge for a new dining room suite. Or when a family with the same last name has its file mixed with yours, and they are late paying their bills. All a computer can do, is spit out the printed record of what it has been told.
Billing errors can run from the very simple, to the complicated, and may include any of the following:
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A charge that has no identifying description or point of purchase
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A charge amount that does not match the receipt you have for the purchase
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A charge for an item which you did not accept on delivery
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A charge whose date does not match the receipt of purchase
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Missing payments that you have a receipt or cheque carbon for
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Missing bills, particularly after a change of address that has been given to a creditor, 20 days prior to a billing period
If any of these appear on a credit statement, you need to contact the creditor in writing, within 60 days of receiving the statement. The sooner the better. Remember, these are large companies, and you are just one small part of their billing department. It can take time and a lot of effort to get through to the proper department or personnel, and have the matter cleared up. Be sure to
include:
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Your name and address
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You account number
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A photocopy of the statement, highlighting the disputed item
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A statement detailing why that item is wrong, including relevant information such as dates, amounts, description of item
Yes, you can phone a company. But you will not have concrete proof of your dispute. If you wish, file the written report, and follow it up a week to ten days later, with a phone call. Let them know that you are careful of your credit status and your personal financial records.
The creditor is required to correct errors within 30 days, unless the time frame is too short for researching the item or data related to the transaction. At most, allow two billing periods, and no more than 90 days for them to correct the error or provide you with an explanation as to why they feel the amount is correct and accurate. Meanwhile, make your payments as always. Do not jeopardize your credit record by holding back payments for what may very well be the company's error. That will only reflect on you, not them.
During the dispute period, a creditor may not report you to CRAs or other creditors in a negative way, because of the current dispute. Nor may they take action to collect a disputed amount, until they have provided a statement as to why they find it to be legitimate, and you have then not paid it.
At this point, they may report you to be in delinquency, but you are entitled to file a written dispute of that, which they are then required to pass out when they give out their side of the story. They must also provide you with the name and address of anyone who has been given information regarding the delinquency.
If there has been no error, the creditor must send you an updated statement explaining their findings, and what you currently owe, including any finance charges or overdue payments. You are then generally allowed a normal billing period to make payment, but in no case, should it be less than ten days.
If there has been an error, your bill must be adjusted to remove any finance charges accrued due to the mistake, and they must provide a current balance to your account.
Sorting this out at "ground" level with the original creditor is sound, personal financial responsibility. But it is even more important, that you check your credit report, to make sure that any resolved dispute which may affect your credit status in a negative way, has not lingered on, despite your best efforts. Order a free credit report by signing up at
Free Credit Report.
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