Do I have to pay an incorrect credit card bill?

Don’t ignore a transaction on your credit card statement that is incorrect or that you did not make. You are responsible for the transaction, unless you inform the credit card issuer otherwise and they credit your account.  If there is a transaction on your credit card bill that you don’t recognize, you should contact the company listed on the bill to verify it.

Contact the company

You may not recognize the name of the company on the bill. This is common as the corporate name of the company where you made your purchase may not be the same name as the signage on the building or website.  The company headquarters could be listed instead of the local company, which could be the reason for the confusion. It is best to keep your receipts so you can compare them to your bill.  This may help to clear up any discrepancies with the items listed on your bill.

Some are subscription services that automatically renew unless you contact the company and could be listed under another name.

Dispute it

If there isn’t a contact phone number or you don’t get anywhere with the company, contact your credit card company to dispute the charge.  You will be required to dispute it in writing within 60 days of you being billed, which includes the reason for the dispute. The credit card issuer will investigate the matter, contact the company and determine if you are responsible

After the investigation has been completed, you will be informed of the result.  If the transaction was made by you, the amount is added back onto your bill.  If it wasn’t, you are not responsible for it.  If you are responsible and don’t pay, you will not only carry this balance but also will be paying interest on the unpaid amount.

On the other hand, this could be a transaction you did not make and you are a victim of identity theft or your card was stolen.  Companies have policies to handle this. You are usually not responsible for the charges.

Credit Reporting Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.