• Don't you just hate it when you buy a product and bring it home, only to discover the product is damaged or poorly made? Or a purchase was charged to your account that you didn’t make? To make matters worse, the merchant refuses to replace it or give a refund. If you made the purchase with a credit card, your card company may be able to help.
• Credit card purchases are protected under the Fair Credit Billing Act. This law gives the consumer the right to withhold payment on poor-quality or damaged merchandise purchased with a credit card.
• Under the law, you do need to make a real effort at resolving the dispute with the merchant before you can ask your issuer to stop a credit card payment. There are a few other catches as well.
• The sale must be for more than $50 and have taken place in your home state or within 100 miles of your home address. Few issuers enforce the $50 or 100-mile rule on purchases, but all are free to do so.
• So there's a chance that you will be able to dispute credit card charges on shoddy merchandise purchased outside your home state, over the Internet, by mail order or phone order.
• Because card companies are eager to hang on to their customers, especially good ones, they'll often go above and beyond what's required of them by law when a customer is unhappy with a card purchase. For example, the credit card company may issue a temporary credit to a customer's account when a purchase is in dispute. They may give the customer the benefit of the doubt
• Some card companies may be less generous when a big-ticket item is in dispute or if you made the purchase while traveling overseas. It all depends on the card company and how much they value their customers. The card company can point to the limits spelled out in the Fair Credit Billing Act whenever they want to.

• First, you should try to resolve the problem with the merchant. Give them a chance to fix it. Sometimes they will. If you use common sense and courtesy, it usually gets the problem solved before it becomes a Fair Credit Billing problem.
• If possible, take the defective merchandise back to the store. Otherwise, call the store and ask for a manager or supervisor. Keep records of each conversation so you always have a paper trail. Make notes of dates and times and to whom you spoke.
• If the merchant won't budge, put your complaint in writing. Outline the dispute in a short, detailed letter to the merchant and send it certified mail. *See letters below.
• Make copies of the complaint letter sent to the merchant. One copy should be sent to the credit card company as proof that you tried to resolve the dispute with the merchant and one copy should be kept in your records.
• The next step is to contact your credit card company and alert the company of the disputed purchase amount. To be protected under the Fair Credit Billing Act you need to do this in writing and within 60 days after the bill with the disputed charge was sent to you.
• In your letter, be sure to include your credit card account number, the closing date of the bill on which the disputed charge appears, a description of the disputed item and why you're withholding payment. Enclose a copy of the complaint letter to the merchant and any other documentation you may have supporting your position.
• Send the letter by certified mail, return receipt requested, to the credit card company at the address for "billing inquiries" and not the address for payments. Do not delay in the mailing of the dispute letter, especially if it includes a payment. Under the Fair Credit Billing Act, an issuer can take as many as five days to credit a payment not sent to the payment address.
• The issuer will then contact the merchant and hear its side of the story. Two things can happen. If the card company sides with the merchant, you will have to pay for the disputed item, plus any finance charges. If the card company sides with you, you don't have to pay a penny. Note: A credit card company cannot charge finance charges on a disputed charge. But you will be charged interest on any other purchases you may have made. Be sure to include a payment for these purchases with the letter.
• To dispute a bill, it's best to move quickly. You will want to inform your card issuer of the disputed charge before it's due for payment. You can't withhold a payment once a bill is paid.

Guidelines for writing your letter:
Before beginning your letter, know what you are trying to do and don't write a letter when you are angry. The last thing you want to do is aggravate the situation. Go cool off. Then, when you are calm, write down in your own words what you would like to see happen.

The top of all correspondence should include the date written, the subject for quick reference, from whom the letter is (you), and to whom the letter is.

The remainder of the letter includes:

• Introduction- Why are you writing? You may also want to include an introduction to what action you want to see as a result of the letter.
• Body- Include (as needed): the background material, specifics of the current situation, supporting evidence or reference to the support material, suggested course(s) of action, additional questions and concerns.
• Conclusion- Besides a summary if it is needed, the conclusion should include a strong statement calling for whatever action you are seeking.