Well, it’s that season again!  Time for eggnog, parties, caroling, and swiping our credit cards through those little machines until they are hot enough to melt.  Some of us use credit cards for convenience, some for the frequent flyer miles, and some because we’re just a little short of cash.  Whatever the reason, almost all of us will be using our credit cards this season.

For most of us, the process should go pretty smoothly.  But what happens if we review our bill in January and we see a mistake?  (We ARE all reviewing our credit card bills before we pay them, right?)  What happens if we purchase something and it never shows up?  Do we have any recourse?  You bet we do.

There is a Federal law called the Fair Credit Billing Act (“FCBA”) that covers just these situations.  For example, let’s say you go to Toys R’ We and buy your little munchkin a “Tickle Me Flemo” doll for $49.95.  (Lucky you!  You got the LAST ONE in the store!)  Your credit card statement comes and you see that Toys R’ We charged you $495.50 for ten of the annoying little suckers!  First things first: you must try to make a good faith effort to settle the matter with the merchant.  If you are unable to do so, you should then write a letter to the credit card company explaining the error and disputing the charge.  As long as you follow the necessary procedures, the FCBA will protect you in this situation.

IMPORTANT:  In order to keep the protections of the FCBA, you must make sure that you write your dispute letter to the creditor at the address given in your statement for “billing errors” or “billing inquiries,” and NOT to the address to which you normally send your payment.  Also, your letter MUST reach the creditor within 60 days of the date of the statement on which the incorrect charge appeared.  For this reason, you should send your dispute via certified mail, return receipt requested, so that you have a “green card” showing proof of delivery.  The creditor MUST acknowledge your complaint within 30 days of receiving it, and MUST resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

The FCBA also covers situations such as:  unauthorized charges (your liability is limited to the first $50 of unauthorized charges, and many credit card companies will often waive this as a courtesy); charges listing the wrong date or amount; charges for goods or services you did not receive or were not delivered as agreed; math errors; and failure to properly post credits and payments.

There are other situations where the FCBA can come in handy during the holiday shopping season (and all year round, actually), so I would encourage you to take a look at the U.S. Federal Trade Commission web site (www.ftc.gov) for more information.  In the meantime, if you see me at the store reaching for that very last X-Game Station Cube III, you better just get outta’ my way!

Stewart J. Guss is a licensed attorney practicing in the Houston area for 15 years.  He concentrates in the areas of personal injury, insurance law, accidents and consumer law.  Mr. Guss maintains an office in the Cypress area and is proud to serve the entire Houston area.  He may be reached at 281-664-6500 or via email at stewart@attorneyguss.com.