How can I resolve unauthorized credit card charges and clear my credit history?

Full question:

Credit card company charged me for merchandise I did not order. I asked them numerous times to credit my account. Instead of a credit, they keep adding finance charges and late charges. In addition I am getting threatening letters from collection agencies. I am quite frustrated with the treatment I am getting without a solution to my problem. How can I clear up my credit history?

• Category: Debts and Credit
• Date: 04/07/2025
• State: New York

Answer:

If a collection agency contacts you about a debt you believe you do not owe, you can send them a letter within thirty days stating your dispute. This letter will stop them from contacting you until they verify the debt. However, they can resume collection efforts if they provide proof, such as a bill showing the amount owed.

Under the Fair Debt Collection Practices Act (FDCPA), within five days of their initial contact, the collector must send you a written notice that includes:

1. The amount of the debt.
2. The name of the creditor.
3. A statement that the debt will be assumed valid unless you dispute it within thirty days.
4. A statement that if you dispute the debt in writing, the collector will obtain verification of the debt.
5. A statement that upon your request, they will provide the name and address of the original creditor.

If you dispute the debt in writing, the collector must stop collection efforts until they verify the debt and send you the verification.

If the collector violates these laws, you can report them to the Federal Trade Commission or file a lawsuit against them, usually within one year of the violation. You may recover actual damages, plus up to $1,000 in individual lawsuits or $5,000 in class actions, along with attorney fees.

To address inaccuracies in your credit report, contact both the credit reporting agency and the company that provided the information. Write to the credit reporting agency detailing what information you believe is incorrect. Under the Fair Credit Reporting Act, the information provider must investigate and report the results. If they find the information is incorrect, they must notify all nationwide credit reporting agencies to correct your file. If the dispute remains unresolved, you can ask to include your statement about the dispute in your file, which must be noted whenever the credit reporting agency reports the negative item.