Disputing a credit card bill

“I make it a habit to check my credit card statement every month. On a recent bill, I noticed I was charged twice for a blender I bought online. I found my receipt and called the retailer’s customer service line. They refunded me for the second charge, and gave me a small credit to make up for their mistake.”

– Shenda, Burnaby, BC

Under the law in BC, a credit card issuer must send you a monthly statement of account (commonly called a bill). You can choose to receive the statement electronically or by mail.

The statement must contain certain information, including:

• the period covered by the statement

• the outstanding balance at the beginning of the period

• a description of each charge and transaction during the period

• the outstanding balance at the end of the period

• the due date for payment

• the amount that must be paid to take advantage of the grace period

Under the law in BC, your monthly credit card bill must include the following information for each transaction:

• the posting date

• the amount of the charge

• a description of the charge

The description of the charge must be detailed enough to allow you to identify the transaction. You may also receive a separate record of the transaction — like a receipt — with your bill.

BC law says your monthly credit card bill must tell you how you can correct billing errors. It must spell out your rights and obligations. Most major banks and credit unions provide a number to call to speak with someone who can walk you through it.

Check if there’s a time window when you can dispute a charge. Many banks require you to deal with a problem within 30 days of the billing date. 

A variety of errors may show up in your credit card bill. These include:

• An overcharge: When you’re charged too much for something you bought or paid for with a credit card.

• An incorrect charge: When the amount charged to your credit card doesn’t match the amount you paid.

• A double charge: When you’re charged twice for something you bought once.

• A missing or inaccurate refund: When you don’t receive a refund, or receive one for the wrong amount.

• An unauthorized transaction: When someone who isn’t supposed to have access to your credit card makes a charge to your account.

Make sure the charge you’re disputing isn’t a legitimate charge. Some reasons you may not recognize a transaction on your credit card bill include:

• the transaction was posted late

• the business uses more than one name

• the business has a processing centre in a different city

• the charge was made by another authorized user on the account

• you unknowingly signed up for a trial offer of a product or service

If the amount of the disputed transaction looks familiar, check it against your credit card receipts. Have you given others access to your account? If so, ask them if they recognize the charge.

The quickest way to get a charge off your credit card bill is to speak to someone in the business directly. Explain to a sales clerk or store manager what has happened. Give them any receipts or other documentation you have. Often, they’ll be able to correct any mistake and give you a refund. 

Create a paper or electronic trail of the dispute. Keep records of all your communication with the business. Save copies of any emails or letters that you sent. In particular, make note of:

• who you spoke to (the name of the person and their job title)

• when you spoke to them (the date and time)

• the nature of your conversation

• any agreed follow-up actions with applicable dates

If your beef can’t be resolved with the business directly, or you suspect fraud or identity theft, contact the credit card issuer. Move quickly on this: there’s often a time limit for you to bring your dispute. (Your monthly statement will tell you if that’s the case.) 

Most major banks or credit unions have a dedicated customer service phone line just for credit card services. Be prepared before you make this call. Have the transaction details — including the date and description of the charge — at hand. 

You may be asked to send the issuer a record of your correspondence with the business. If so, don’t send the originals of receipts or notes. Instead, keep your originals and make copies to send to the credit card issuer.

In some cases, the credit card issuer may ask for a copy of the transaction receipt from the business. They’ll likely send you a copy and ask you to confirm that the charge isn’t valid.

It may take the credit card issuer a few weeks to investigate your dispute. In the meantime, keep paying your credit card bill. Otherwise, you may be charged interest on the balance. If your dispute is successful, you will get a refund including any interest that has been charged relating to the disputed amount. 

If neither the business nor the credit card issuer is able to resolve your dispute, consider contacting an ombudsman. An ombudsman is a bank employee who helps customers resolve their disputes with the bank. 

Check your credit card issuer’s ombudsman policy. The Ombudsman of Banking Services and Investments represents many banks, and can act as referee for disputes of up to $350,000. The Canadian Bankers Association provides a contact list for the bank ombudsman’s offices for most Canadian banks.

Your credit card issuer may not be able to resolve your dispute right away. This means your bills and interest charges go on as usual. If you refuse to pay your credit card bill, you’ll be charged interest on the outstanding balance. 

First, contact the business and let them know about the problem. (See our guidance on if there is a problem with a purchase.) Most stores and e-commerce websites have a return policy. Many include a money-back guarantee if a product or service is of poor quality. Try to bring your dispute as quickly as possible to avoid missing any deadlines. 

If you aren’t able to solve the problem directly with the business, your credit card issuer may be able to help. Take a look at your cardholder agreement. Often, these agreements say that cardholders must pay charges on the card regardless of product or service quality. However, some credit card issuers offer a warranty for products or services purchased with the card.