There will come a time when you see something on your credit card statement that you want to dispute. You may see a charge for an item you never received, for an item or service that was defective or one that you returned. There are certain procedures you must follow in order to dispute a charge you feel is unjustified.

Your first step should be to consult with the merchant or store where you bought the defective merchandise (or service). If the charge is for something you have no knowledge of, you can still contact the merchant and discuss the issue with him or her. If you and the merchant come to an agreement, then he or she can handle submitting some type of “credit” to your card company so that the charge will be zeroed out. If, however, you can not come to an agreement, or if you do not know how to contact the merchant, then there are still procedures you can take to get the issue resolved.

Your next step should be to write a letter to your creditor explaining that you want to dispute the charge. Include information detailing what steps you have already taken in an attempt to resolve the issue, such as talking with the merchant. Explain the situation honestly and thoroughly so that there will be no questions left unanswered. You can also explain that you are not going to pay this particular disputed charge until a resolution is found.

Some conditions must be met in order to file a formal dispute on a claim. The purchase of the disputed item had to have been made in your same state of residence or no more than 100 miles away from your home. In addition, the disputed charge must be in excess of $50.00.

One exception to these conditions is if the business that honored your credit card is connected in some way to the card company. If so, then none of this applies to your situation. For example, if this is a store credit card you used at that store, then these conditions are not viable.

If you already paid all of the charges being disputed, then you can not dispute it. If you only paid part of the charge, then you can dispute the remaining amount.

All of these conditions apply to purchases made via phone using your credit card as long as the state of residence or mileage requirements are met. Use the exact same procedures listed above to file your claim. For out of town vendors, it depends upon who made the contact whether or not you can file a dispute. If the company contacted you at your home, you can file as if it happened within your own state. If you contacted them out of state, then you can not file if it is more than 100 miles away.

The time limitation for filing claims on disputed charges is one year from the purchase date. If the card company or merchant should sue you for these charges, then you can file your claim anytime without having to meet the time conditions.

You should keep these procedures handy just in case you ever find yourself needing to file a dispute on an erroneous charge. It is often difficult to find out (from the credit card company) how to go about filing these claims properly. Now that you know, make sure you keep this information in a safe place.