9 Vital Facts About Credit Card Billing
The use of credit card for meeting modern day purchasing needs has brought a lot of convenience to consumers. It has given a right to make purchases of goods and services when the consumer has no cash balance at his disposal. At the same time, the consumer gives a legal undertaking to pay the amount to the credit card issuing agency with applicable interest rates. Thus, the issuing agency bills the consumer at fixed intervals, which in most cases is on a monthly basis.
The Billing Is Done In a Systematic Manner
Billing statements are prepared by the provider on a monthly basis. This statement lists out all prices, purchases, payments, and credits that have been undertaken during the credit card billing cycle. The statement is sent at the credit card holder’s address. This is done 21 days prior to its due date. This is done to give sufficient time to the cardholder to make necessary arrangements for payment on due time. This helps the holder to avoid a finance charge. The statement clearly specifies the payment conditions. It includes a warning message related to late payments. This information is incorporated in the bill irrespective of the payment status.
Role of Billing Service
It is a wrong presumption to think credit card billing experts are in possession of any magic wand. On the contrary, with little-disciplined thinking, you can lead a debt-free future. Creditors are more likely to reduce interest rates in the event they are approached by agencies. This service is ideally meant for people who have no ‘control’ over their expenditures.
Finding the Service Has Become Easier
Information about such billing services are offered by the credit card provided free of cost when asked for.
Be Vigilant of the Service Provider
Just be extra vigilant of agencies that show great interest in knowing too many things about you or your business. This reflects their interest in your business rather than the debts incurred. Similarly, avoid agencies that restrict their services to one option only. Those who deny going beyond traditional debt management plan should be avoided at any cost.
When Should You Skip The Service?
These services are subject to a certain amount of applicable fees. In instances where fees charged are in excess of 20% of your monthly payments, it is better to discontinue the service. Every agency has its own proposed schedule of monthly payments. Just make sure it does not cast any financial strain on you. In case it does and you are not comfortable with it, simply discontinue it. If needed, call the customer helpdesk number. To arrive at the authenticity of credit payment of the billing agency, have a close watch on their billing cycle. If they do not, simply disassociate from their service.
How to Fix the Billing Issues
Paying unfair or fraudulent charges is a common thing with most credit card billing. The best move to avoid this is to know what your bill speaks. On receipt of the credit card statement each month, you need to sit down and check each item. Make sure you actually ‘did’ purchase it. In case you come across inconsistencies and inaccuracies, report it according to laid down procedures. If you do not, the card company is likely to notify the reporting agency and things might get even murkier. Yes, it could be an error by the store. However, this is perhaps the clear-cut indication that someone else is making wrongful use of your identity. Hence, it is always prudent to nip it in the bud. Keep everything in a written format. Write a letter clearly spelling out you dispute the charge.
Billing Errors Could Be Many
The billing errors are of many types. It includes a purchase you never made or authorized. It includes charges levied for goods and service you refused to accept or did not receive. Payments that you made but were not credited to the account you hold also come within the definition of such errors. Bills containing mathematical errors or charges you dispute are also included in it.
Are You Under A Legal Obligation To Pay Disputed Amount?
The answer is a big NO. You can withhold both – the disputed amount and finance charge. This can be done until the card company has completed the investigation for the disputed amount. The right to withhold is applicable on the interest payment related with the disputed amount.
How can the Billing Errors be corrected?
The credit card holder has 60 days with him to notify the credit card company. This has to be done in a written format and he/she has 60 days from the date of the statement to do so. The letters must be sent to the address mentioned on the credit card statement. This should be done after incorporating necessary information such as date and amount of error, account number, and your name. It needs to be supported with a letter explaining why you think the credit card billing is wrong. You are also entitled to request proof of purchase. Always make sure to send the letter under certified mail. The return receipt should be asked for as a proof of delivery.