Regulation Z — Credit Card Dispute Procedures

Regulation Z (12 CFR Part 1026) implements the Truth in Lending Act, including the Fair Credit Billing Act (FCBA). Two sections are especially important for credit card disputes.

Section 1026.13 — Billing Error Resolution

This is the primary rule for disputing credit card charges. It defines what qualifies as a billing error and establishes the process creditors must follow.

What Qualifies as a Billing Error

1. Unauthorized charges — charges you didn't make or authorize
2. Wrong amount — charges for an incorrect dollar amount
3. Non-delivery — charges for goods or services not delivered as agreed
4. Calculation errors — mathematical mistakes on your statement
5. Failure to post payments or credits — payments or refunds not reflected
6. Charges needing clarification — any charge you need more information about

Timeline Requirements

• You must dispute within 60 days of the statement containing the error
• Creditor must acknowledge your dispute within 30 days
• Creditor must resolve within 2 billing cycles (maximum 90 days)

Your Rights During Investigation

• You are not required to pay the disputed amount during the investigation
• The creditor cannot report you as delinquent for the disputed amount
• The creditor cannot charge interest on the disputed amount (if resolved in your favor)

Section 1026.12(c) — Claims and Defenses

This lesser-known provision allows you to assert against your credit card issuer any claims or defenses you have against the merchant, under certain conditions:

1. The transaction must exceed $50
2. The transaction must have occurred in your home state or within 100 miles of your address (though this geographic limit is often waived for online purchases)
3. You must have made a good-faith effort to resolve the dispute with the merchant first

This is powerful for disputes involving defective products, services not rendered, or merchant refusal to honor guarantees.

Official References

• 12 CFR § 1026.13 — Billing Error Resolution
• 12 CFR § 1026.12(c) — Claims and Defenses
• 12 CFR Part 1026 — Full Regulation Z Text