Can Unauthorized Charges Be Removed from Credit Card Statements?

Unauthorized charges on a credit card can be frustrating and concerning, especially if they are the result of fraud or identity theft. Fortunately, consumers are protected under federal law and have several steps they can take to dispute these charges and have them removed from their credit card statements.

Steps to Remove Unauthorized Charges:

1. Review Your Credit Card Statement:
   • Carefully review your credit card statement to identify any charges you do not recognize. These could be the result of fraudulent transactions or errors made by merchants. It's important to act quickly, as credit card issuers often have time limits for reporting unauthorized charges.
2. Contact Your Credit Card Issuer Immediately:
   • As soon as you notice an unauthorized charge, contact your credit card issuer to report the issue. Most credit card companies offer 24/7 customer service, either by phone or through their online portal.
   • Reporting Timeline: Under the Fair Credit Billing Act (FCBA), you must report any unauthorized charges within 60 days of the statement date to avoid liability for the charge.
3. File a Dispute:
   • Request that your credit card issuer initiate a dispute for the unauthorized charge. The issuer will typically ask you for details about the charge, including when and where it occurred, and may ask you to provide any supporting documentation (e.g., proof that you didn’t make the purchase).
   • Chargeback Process: In cases of fraud, your card issuer may offer a chargeback process, where the disputed charge is reversed while they investigate the claim.
4. Provide Required Information:
   • Be prepared to provide additional information if necessary. Some credit card companies may ask for a written statement or documentation showing that you didn’t authorize the charge, or they may require you to complete a formal dispute form.
5. Monitor Your Account:
   • After filing the dispute, monitor your account closely for any updates or new charges. Your card issuer will typically have a set time frame (usually 30-60 days) to investigate and resolve the dispute. If the dispute is successful, the unauthorized charge will be removed from your statement, and your account will be credited.
6. Investigate Potential Fraud:
   • If the unauthorized charge is the result of fraud or identity theft, you should also consider taking additional steps to protect yourself, such as:
   • Freezing Your Credit: This will prevent new accounts from being opened in your name without your consent.
   • Filing a Police Report: If the fraud involves significant amounts or identity theft, you may need to file a police report.
   • Report to the FTC: In the U.S., you can file a complaint with the Federal Trade Commission (FTC) through IdentityTheft.gov.
7. Follow Up:
   • If the credit card issuer doesn’t resolve the dispute within the required time frame or if they reject your claim, you can escalate the issue. You have the right to appeal the decision or escalate the matter to the Consumer Financial Protection Bureau (CFPB) or your local consumer protection agency.

Legal Protections for Consumers:

• Fair Credit Billing Act (FCBA): Under the FCBA, consumers are protected from unauthorized charges on their credit cards. If you report a fraudulent charge within 60 days of the statement date, your liability is limited to $50. In practice, most credit card companies waive this liability if the fraud is reported promptly.
• Zero Liability Policies: Most credit card issuers offer zero-liability policies for fraudulent charges, meaning that you are not responsible for charges you didn’t authorize, even if they exceed the $50 limit set by the FCBA.
• Fraud Protection: Many credit card companies offer fraud protection services, such as alerts for suspicious activity or the ability to lock or freeze your account instantly through mobile apps. Using these services can help prevent unauthorized charges and help resolve disputes faster.

Example:

Unauthorized Charge Due to Fraud: A consumer notices a charge for a luxury item on their credit card statement that they did not purchase. They immediately report the charge to their card issuer, who initiates a dispute and issues a provisional credit for the charge while they investigate. After confirming that the charge was fraudulent, the issuer removes the charge from the account and updates the consumer’s credit card statement.

Conclusion:

Unauthorized charges on a credit card can be removed through a formal dispute process, and consumers are well-protected under U.S. law, especially through the Fair Credit Billing Act and zero liability policies offered by most card issuers. Prompt action is key—reporting the charge within 60 days of the statement date, providing necessary documentation, and following up with your credit card company can help ensure that fraudulent or mistaken charges are removed. Additionally, if fraud is suspected, consider taking extra steps like freezing your credit or filing a police report to protect your identity and financial security.