The 640 MEG Shareware Studio 2/The 640 Meg Shareware Studio CD-ROM Volume II (Data Express)(1993).ISO/wp/ccsii.zip/16.CCS

Text File | 1992-12-25 | 15KB | 288 lines

                           CREDIT CARD BILLING ERRORS

          What is a billing error? Federal law says that it's just
          about anything the consumer says it is. It's that simple.
          The following are plain language examples of billing errors:


                A CHARGE FOR A PURCHASE YOU DID NOT MAKE.

                EXAMPLE: There's a charge for $54.93 from the Westside
                Seafood Restaurant. You're allergic to seafood and
                you've never eaten there. This is a billing error.



                A CHARGE THAT YOU CANNOT IDENTIFY OR ONE THAT YOU DO
                NOT RECALL MAKING.

                EXAMPLE: There's a charge for $19.95 listed as
                "TRANS#01LACA." You bought a "Home for the Holidays"
                compact disk last month for $19.95, but, is this the
                charge? You don't know, so, this is a billing error.



                AN INCORRECT CHARGE AMOUNT, THAT IS AN OVERCHARGE OR
                AN UNDERCHARGE.

                EXAMPLE: You bought a book for $9.95. Your statement
                shows up and lists the purchase as "Bob's Bookstore,
                BOOK, $99.95." This is a billing error.



                A POSTING ERROR.

                EXAMPLE: You mail in a payment of $100. When your next
                statement arrives it shows a credit of $10 instead of
                $100. This is a billing error.



                A CHARGE FOR AN ITEM NOT DELIVERED AS PROMISED. SUCH
                A DELIVERY CAN BE PROMISED EITHER TO YOU OR TO A
                PERSON ACTING ON YOUR BEHALF.

                EXAMPLE: You purchase a spa from Bubbles Are Us Spas.
                You put a $500 deposit on your credit card. They
                promise to deliver the spa in two weeks. Three weeks
                pass and no spa. Your statement shows up and there's a
                $500 charge from Bubbles Are Us Spas. This is a
                billing error.



                A CHARGE FOR AN ITEM NOT ACCEPTED BY YOU OR BY A
                PERSON ACTING ON YOUR BEHALF.

                EXAMPLE: Four weeks after purchasing a spa from
                Bubbles Are Us Spas, they call and say they will
                deliver your spa a week from Friday. Since you'll be
                gone on vacation, you arrange to have your brother
                there to accept delivery. Friday comes and the spa
                arrives as scheduled. Your brother finds a large
                scratch in the spa and refuses delivery. Your next
                statement shows up and there's a $1500 charge from
                Bubbles Are Us Spas. This is a billing error.



                IF YOUR STATEMENT HAS ARITHMETIC ERRORS, INCLUDING
                PRICES AND COMPUTATION OF FINANCE CHARGES, LATE FEES,
                OVER LIMIT FEES, DEBITS, CREDITS, ETC., THIS IS A
                BILLING ERROR.



                IF YOUR STATEMENT IS NOT MAILED TO YOUR CURRENT
                ADDRESS, AND, YOU NOTIFIED THE CREDIT CARD ISSUER, IN
                WRITING, WITHIN 20 DAYS OF THE CLOSING DATE OF YOUR
                STATEMENT, THIS IS A BILLING ERROR. THIS IS IMPORTANT,
                ESPECIALLY IF THEIR ERROR RESULTS IN ADDITIONAL
                INTEREST AND LATE FEES.



          The procedure for disputing a billing error is fairly easy.
          First, you must file your complaint, within 60 days of the
          statement closing date that is on the statement on which the
          billing error in question occurred. Please note, this 60
          days is from the close of your statement date, not, 60 days
          after you receive your bill. You must send your complaint,
          in writing, to the address given on your monthly statement
          for this purpose. This address is usually listed on the
          front of your statement. Many credit card companies will
          label this address with small, hard-to-read print because
          they don't want you to complain.

          When you file your written inquiry, you must give the
          following information:

                      Your name and account number.

                      The exact dollar amount of the suspected error.

                      Describe the suspected error and explain, if
                       you can, why you believe an error exists.

                      If you are unsure about a statement entry,
                       describe that entry and state that you need
                       information to clarify the item.


          This information is usually listed on the back of your
          monthly statement under the section entitled "Billing Rights
          Summary."

          When you file a complaint, do not write it on the statement
          or payment stub; this is not a legally acceptable method and
          the credit card company can ignore the complaint. You must
          draft a letter, which can be brief.

                  EXAMPLE: "On my April 15, 1992 statement, the amount
                  billed for the item listed under reference number 05679375
                  is incorrect. The amount, which is listed as $539.90 should
                  be $53.99. Please investigate."

          You should always, repeat always, mail your letter via
          Certified Mail ($1 as of 9/92) and request a Return Receipt
          ($1 as of 9/92). Also, NEVER send original documents, always
          keep your originals and send photocopies.

          After the credit card company receives your inquiry, they
          have 30 days in which to investigate and answer your
          complaint. If they cannot do so within the 30 day time
          limit, they must notify you in writing acknowledging receipt
          of your complaint.

          After such notification, the credit card company then must
          investigate and answer your complaint before two complete
          billing cycles lapse. Federal law imposes a 90-day limit on
          the complaint process. So, the entire complaint process
          should never take more than 90 days. When the credit card
          company completes their investigation, they are required to
          take one of the following two actions:

                #1.    If the statement is in error, they must make
                       the appropriate correction(s), including
                       crediting of finance charges and late fees
                       involved, if any. Also, they must send the
                       credit card holder notification of such
                       corrections, including an explanation of any
                       adjustments to amounts in dispute.


                #2.    If the statement is correct, they must send you
                       an explanation or clarification of the item(s)
                       in question. If the credit card holder so
                       requests, documentation substantiating the
                       credit card company's claim must be provided to
                       the consumer.

                       In disputes involving items that were not
                       delivered as agreed between the credit card
                       holder and the merchant account holder, the
                       credit card issuer, must prove, as part of
                       their investigation that the goods in fact were
                       delivered as agreed. Also, the credit card
                       issuer must provide the credit card holder with
                       a statement of such determination. Failure on
                       the part of the credit card issuer to do
                       either, is substantiation of the credit card
                       holder's billing error claim.


          Suppose that after complaining, your billing error is not
          resolved. "Not resolved" means the credit card company says
          they are right and you are wrong, but, you still feel you
          are right. Well, you can continue to complain, but, if the
          credit card company has followed the letter of the law, it's
          a closed matter where the law is concerned. Except, if you
          respond to the credit card issuer within 10 days stating
          that the amount is still in dispute, they cannot report your
          account as delinquent to a credit reporting agency. But,
          they can come after you for payment of the amount. Again, if
          they complied with the letter of the law, it's a done deal!


          But, what if they don't comply with the letter of the law?
          What if they fail to resolve the issue within 30 days after
          failing to send an acknowledgement of your written
          complaint? What if after 120 days of receiving and
          acknowledging your written complaint, the credit card issuer
          fails to respond?

          You win, that's what! Federal law provides that if a credit
          card issuer fails to respond to a properly filed complaint
          in the manner set forth by law, you win the dispute. The law
          does, however, set a $50 limit on the penalty that may be
          imposed on the credit card issuer for failing to investigate
          a claim in a timely fashion.

          This means that if the disputed amount is $42.93, you owe
          nothing. If the disputed amount is $64, you are only liable
          for $14 ($64 - $50). So, as you can see, it pays to
          complain.

          If it was, in fact, a valid charge, you're ahead $50. If the
          charge was in error, when the credit card issuer finally
          gets around to fixing it, you'll receive a credit for the
          entire amount, which is in this example, $64.

          Who has the burden of proof in a billing error dispute? The
          credit card issuer does, not you! If you the consumer
          believes there is a billing error on your statement, the
          credit card issuer must prove that they are right and that
          you are wrong. The law, in essence, places no burden of
          proof on the consumer.

          How does the credit card issuer prove that they are right?
          They do this by conducting what's called a "reasonable
          investigation." A reasonable investigation is commonly
          regarded as a review of the consumer's complaint and all
          pertinent documents, written or verbal contact with the
          merchant who is the subject of the complaint, and, written
          or verbal contact with the consumer.

          One important point to remember: If the credit card company
          properly investigates your claim and decides that they are
          right and you are wrong, they will take the necessary steps
          to collect the disputed amount. This can consist of
          including the disputed amounts in the account balance and
          posting any payments made to that balance.

          A credit card issuer also may report the delinquent payment
          to a credit reporting agency, such as TRW, Equifax, or
          TransUnion. They must, however, report that the delinquent
          amount is "in dispute" when doing so. At the same time, the
          credit card issuer must inform the credit card holder of the
          name and address of each credit reporting agency to whom the
          delinquent information was given.

          A credit card issuer may not restrict or close a credit card
          holder's account before issuing a written answer to a credit
          card holder's complaint. However, if the credit card issuer
          properly investigates the complaint and sends a written
          response, the consumer should be prepared to have their
          account restricted or closed if they choose not to pay up.
          If the credit card company follows the letter of the law and
          the consumer still refuses to pay their bill, the credit
          card company is under no legal or moral obligation to
          continue to do business with the consumer.

          The next section called "stopping payments" will explain how
          to stop or "undue" a charge from being posted to your credit
          card. It's important to mention that at this point because a
          knowledge of both "billing disputes" and "stop payment"
          procedures are two of the most powerful means of protection
          available to consumers. There are, however, two major
          differences between the two with which you should be
          familiar.

          In the case of billing disputes, there is a 60-day time
          limit in which to file complaints. On the other hand, stop
          payments have a geographical and dollar amount limitation.
          To stop payment on a purchase, it must have been made within
          100 miles of your credit card statement mailing address,
          and, the charge must be for more than $50.

          These two provisions of the law ensure that you will always
          prevail if you have a valid complaint. In situations where
          filing a billing dispute may not help, ordering a ■good
          faith■ stop payment may, and vice versa.


                THE "60-DAY" STOP PAYMENT (Disguised as a billing
                error dispute): You have 60 days from the mailing date
                of your statement to file a complaint. There is a $50
                limit of liability for the credit card issuer. But,
                there are no geographical limitations. The credit card
                issuer cannot charge the credit card holder for making
                a 60 day stop payment.



                 * * * End of CREDIT CARD BILLING ERRORS * * *