What should you do if there are incorrect transactions on your monthly statement?
Report the discrepancy to your bank or card issuer promptly and dispute it in writing within 60 days of the statement date. Do not ignore it or wait. Under the Fair Credit Billing Act, timely written notice protects your right to an investigation and correction.
The answer
If you spot incorrect transactions on your monthly statement, you should report the discrepancy to your bank or card issuer promptly and dispute it in writing within 60 days of the statement date. The correct action is active and fast, not passive. The right to have a billing error investigated is time-limited, so ignoring the error, waiting to 'see if it corrects itself,' or simply paying the wrong amount all put your money and your protections at risk.
For credit cards, this deadline comes from the Fair Credit Billing Act (FCBA): you must send written notice to the creditor within 60 days after the first statement containing the error was mailed to you. The issuer must acknowledge your dispute within 30 days and resolve it within two billing cycles (no more than 90 days). While the disputed amount is under investigation, you don't have to pay it and it can't be reported as delinquent.
Why the other choices are wrong
Ignore it / do nothing. Errors don't reliably fix themselves, and once the 60-day window closes you can lose the legal right to a formal investigation. Silence can also be read as acceptance of the charge. This is the worst option.
Just pay the full statement to avoid a late fee. Paying an incorrect charge doesn't erase your right to dispute, but it makes recovery harder — you're now chasing a refund rather than withholding payment on a disputed amount, and you may forfeit FCBA protections on that portion.
Only call and never follow up in writing. A phone call is a good first step to alert the issuer, but a verbal report alone may not preserve your full FCBA rights. The law protects a written dispute sent within 60 days. Call to flag it, then confirm in writing and keep records.
Close the account immediately. Closing the account doesn't resolve the disputed charge and can complicate the investigation. Dispute first; decide on the account later.
The bigger picture: how to dispute correctly
Work the problem in order. First, review the statement and confirm the charge really is wrong (not a forgotten subscription, a pending hold, or a merchant name you didn't recognize). Second, contact the issuer promptly by phone to open the dispute and, for clearly unauthorized/fraudulent charges, to freeze or replace the card. Third, send a written dispute within the 60-day window. A good dispute letter includes your name and account number, the date and dollar amount of each disputed charge, and a clear explanation of why it's wrong. Send it to the issuer's billing-inquiries address (not the payment address) and keep a copy.
Note the distinction between a billing error/dispute (FCBA, 60-day written notice, credit cards) and unauthorized electronic/debit transactions, which fall under the Electronic Fund Transfer Act and Regulation E and have their own, generally shorter, reporting timelines — another reason to act fast. Either way: verify, report promptly, put it in writing, and keep records until it's resolved.
- 1
Verify the charge is truly wrong
Rule out forgotten subscriptions, pending holds, and unfamiliar merchant names before disputing.
- 2
Contact the issuer promptly
Call the bank or card issuer to open the dispute. For fraud, ask to freeze or replace the card immediately.
- 3
Dispute in writing within 60 days
Send written notice within 60 days of the statement date (Fair Credit Billing Act) to the billing-inquiries address, with account number, dates, amounts, and the reason.
- 4
Keep records and track the timeline
The issuer must acknowledge within 30 days and resolve within two billing cycles (max 90 days). You need not pay the disputed amount while it's investigated.
Frequently asked
How long do you have to dispute a charge?
For credit card billing errors under the Fair Credit Billing Act, you have 60 days from the date the statement containing the error was sent to you. Send written notice within that window to preserve your right to an investigation.
How do you write a billing dispute letter?
Include your name and account number, the date and amount of each disputed charge, and a clear explanation of why it is wrong. Send it to the issuer's billing-inquiries address (not the payment address) within 60 days, and keep a copy for your records.
What is the Fair Credit Billing Act?
The Fair Credit Billing Act (FCBA) is a federal law that lets consumers dispute billing errors on credit card accounts. It requires written notice within 60 days, obligates the issuer to investigate, and protects you from paying or being penalized on the disputed amount during the review.
Can you get a refund for an unauthorized transaction?
Yes. Report unauthorized charges promptly. Credit card fraud liability is limited to $50 (often $0), and unauthorized debit/electronic transfers are covered under the Electronic Fund Transfer Act with lower liability the faster you report, so act quickly.
What information goes in a dispute letter?
Your name, address, and account number; the specific transaction date, merchant, and dollar amount in dispute; a statement that you believe it is an error and why; and a request for correction. Attach supporting documents and keep a dated copy.