When an unfamiliar balance or billing error suddenly appears on a credit card statement, most people assume the issuer will fix it quickly. Yet consumers often learn the hard way that an unauthorized retail charge can spiral into months of denials and frustration.
This very scenario happened to David. David purchased furniture at a big-box retail store using a promotional credit card and paid the balance on time. Six months later, a new $10,000+ charge appeared — one he never made, received merchandise for, or signed for.
Shocked, David immediately challenged the transaction. The credit card company initially refunded the amount, then abruptly issued a reversal reinstated without providing proof of authorization or proof of delivery. Meanwhile, his account began accruing fees/interest.
David filed multiple written disputes within 60 days, each demanding validation of the transaction. Instead of complying with their issuer investigation duties, the bank continued to collect the balance and report the account past due. David had no choice but to file a CFPB complaint and escalate his claim.
If you discover an unauthorized charge, whether from a retailer, contractor, or an unfamiliar seller, you have options. The Fair Credit Billing Act (FCBA) gives you powerful protection to fight back, recover damages, and prevent unlawful fees or reporting.
Below is a practical, consumer protection playbook for using the FCBA to your advantage.
Trigger your FCBA protections
The Fair Credit Billing Act shields consumers from unfair billing practices on “open-end” accounts like credit cards. Under the law, you have the right to dispute errors within 60 days of the bill and require creditors to investigate and respond to your complaints. During this time, the issuer must place a pause on disputed amounts, stop negative reporting during investigation, and follow strict issuer deadlines.
FCBA protections give you the right to:
- Dispute charges for wrong amounts, incorrect items, undelivered goods, or missing credits.
- Request a written explanation or proof of purchase.
- Limit liability for fraudulent or unauthorized charges to $50.
- Fair treatment. This prevents negative credit actions (like damaging a credit score) during an investigation.
- A prompt response. Creditors must respond to complaints and investigate errors quickly.
How to write the dispute
To trigger your FBCA protections, submit a written disputethat explains exactly what went wrong.
Clearly identify the billing error, state the unauthorized charge, and provide precise account details. The more information you include, the stronger your case will be. Your dispute should also request docs like signed authorization, delivery records, and any transaction paperwork.
Send your letter by certified mail with a “return receipt requested.” This creates an official proof of delivery required to later enforce your rights and starts the 30-day investigation clock required by law. If the issuer violates their obligations, having a paper trail shows you took the right action and met every legal requirement.
If the issuer won’t fix it
What happens when the issuer refuses to take action? If there is a failure to investigate properly, a reinstated charge without evidence, or continued collection despite proving the charge was unauthorized (no signed receipt or no delivery confirmation), you have strong rights.
Under the FCBA, you can seek compensation for statutory/actual damages and attorney fees. This includes:
- Any money the creditor collected illegally
- Credit-related losses (e.g., higher interest rates on denied loans)
- Lost income
- Out-of-pocket expenses
- Damages for emotional distress caused or reputational harm
But if the issuer or the credit agency acted maliciously or in deliberate bad faith, you may need to escalate with regulators. False credit reporting damagecan have lasting consequences that ruin your financial security and future opportunities.
Unauthorized charges don’t have to derail your finances. When an issuer denies your claim, the law gives you the leverage to protect your money, your credit, and your future.