How to Proceed If You Find Fraudulent Charge on Your Credit Card Statement?

When you find some strange item on your credit card which you have never ordered or approved, you get upset. You may be making frantic calls in your effort to get that item removed. In fact you should handle the situation without panic. The following guidelines can help you:

1. If the amount in dispute is with a merchant you already know, contact his office. Most of the problems are resolved at this stage itself. If the merchant is not ready to co-operate or if the merchant is unknown, then you can involve your credit card company.

2. You should explain to your credit card company about the unauthorized charges. Keep handy your statements and other supporting documents while speaking to the credit card company. Remember if you are unable to contact to your company within 60 days from the date the statement containing faulty charges was received by you, you are not likely to succeed. For this purpose, it is important to keep a record of the date and time of your call and the name of the person you spoke to.

3. It is very important for you to file a written complaint with the credit card companies so that they are bound to take the decision within 60 days from the date of such complaint. Complaints over the phone are not good in legal process. While making such written complaint, attach copies of relevant invoices or receipts to support your claim.

4. Most of the credit card companies will ask you to sign a statement to confirm the unauthorized charges. You should promptly sign and send back such statement and preferably stop using the card when the dispute is in progress.

5. If you feel that the dispute is not decided fairly, then you can file a complaint with the attorney general of your state or the Better Business Bureau. This trick works very well and the merchant or the credit card company may come forward to end the dispute in your favor.

6. You can also think of filing a lawsuit. This is a very long and expensive process. However, you can get the help of an attorney who can accept awarded damages as payment.

7. Once the charges are resolved and they are the removed from your credit card statements, get a copy of your credit report to ensure that the record is updated. Sometimes during the period of dispute these charges might have been reported to the credit bureau as late payments. You can ensure that your report is clear of all these entries. It is also important for you to thank all the people and agencies who helped you to resolve the dispute.