ABA Family Legal Guide

Contracts and Consumer Law

When Things Go Wrong

Stopping Payment

What if I'm dissatisfied with goods or services that I've paid for with a credit card?

Then the Fair Credit Billing Act may protect you. Under the act, products you refuse to accept on delivery or that aren't delivered according to an agreement are regarded as billing errors that the card issuer must investigate and may correct by granting you a credit. So long as the consumer has not accepted the goods, the appearance of a charge on the bill is a billing error. If the seller does not press the matter, the consumer will get a credit. If the seller protests, then the card issuer may or may not issue a credit, depending on the issuer's agreement and practices with merchants.

The law may also give you protection against having to pay for shoddy or damaged goods. These are not billing errors, but another section of the FCBA, Section 170, may give you rights against the card issuer. See chapter 7, "Consumer Credit," for more details.

If you have a right not to pay under state law, you may be able to assert that right against the credit card issuer as well, under certain circumstances. You also have billing error rights if you've used a debit card for a purchase.