For many Americans, going to the local mall can be a real hassle. Standing in long lines at crowded stores, searching through bins for merchandise, and fighting your way out of the parking lot, even a simple trip can cause a lot of hassle.
In some cases, however, the aggravation can extend for months, especially when a consumer’s bill doesn’t match the charges on their monthly credit card bills.
Left unchecked, these charges could hurt a buyer’s finances. While such concerns can affect any shopper, the millions of Americans who live paycheck to paycheck often face the greatest risk, because they may not have the reserve funds in their accounts to cover these additional charges.
As a result, a simple billing error like this can quickly turn into a late payment, which can lead to inaccurate information on a consumer’s credit report and subsequent credit score damage if not corrected in a timely manner.
Unfortunately, up to two-thirds of all Americans don’t check their credit reports annually. These reports, which are used by credit bureaus to calculate credit scores that help lenders evaluate loan applications, contain a consumer’s complete financial record. Those with good credit reports often receive better interest rates on mortgages and credit cards, as well as more affordable insurance premiums.
On the other side of the coin, those with low credit scores may have a harder time accessing lines of credit, and even when they do, they typically pay more for such privileges. Higher interest rates can lead to thousands of dollars in higher payments over a lifetime.
Those who think they may have experienced a serious billing error by a merchant should check to see if the item is on their credit reports. Consumers can get a free copy of their report from each of the three credit bureaus every 12 months.
However, before doing this, consumers should review the Fair Credit Billing Act, which provides rules for disputes over billing errors. It also contains information on how to handle unauthorized charges, math errors, and instances of non-delivery of promised items.
This may mean going back to the local mall and talking to the store manager or supervisor and explaining the error. Consumers must also make a detailed record of their visit to use for future claims, a move that may also be integral to removing the charge from a credit card statement.
Once an error is verified, consumers should contact their financial provider to report the error. Consumers can do this by first contacting the bank or lender by phone and then submitting copies of the receipts containing the errors.
Corrections take 30-45 days to appear on a credit report after a dispute is filed. However, consumers may still need to contact their merchant at a later date to ensure that the improper payment has been waived.
Consumers who experience an inappropriate charge have 60 days to dispute the item with their credit card company. Typically, lenders will request copies of receipts, written agreements, or other documents to remove a charge from company records.
This may seem like a lot of effort to get rid of an inappropriate charge, but by proving that the late payment was caused by merchant error, consumers can avoid significant damage to their credit scores.
In addition, by successfully getting rid of credit blunders, consumers can help maintain their financial well-being and help optimize their family budgets, not to mention save more for long-term goals like a child’s college fund or own retirement.
