How to Dispute a Bill for Services Not Rendered and Billing Errors
Learn how to dispute a bill for services not rendered or incorrect charges. Follow proper legal steps, document your claim, and protect your rights as a consumer. 6 min read updated on February 07, 2025
Key Takeaways:
- Review bills carefully for discrepancies before disputing them.
- Act promptly when you identify a billing error to meet legal time limits.
- Document everything, including receipts, contracts, and correspondence.
- Understand your rights, such as those under the Fair Credit Billing Act.
- Follow proper dispute channels, including written notifications.
- Escalate the dispute if necessary through regulatory agencies or legal means.
- Seek legal help if the issue remains unresolved.
How to dispute a bill for services starts with checking all your bills for discrepancies to ensure the amount that you are being billed is correct, because creditors can make errors. If you notice a billing oversight or overcharge, it is necessary for you to notify the creditor by sending them written notification of the incorrect billing amount.
Written notification sent to creditors concerning billing disputes compels them to abide by federal requirements to clear up the disagreement. To support your claim of a billing error, it's imperative to keep all documentation pertaining to the account with the creditor such as proof of payments, receipts from the creditor, and the written contract that involves you and the creditor. These items of proof along with your bank statement will assist you in proving your dispute.
Things to Do To Prove The Validity of Your Dispute
-
Inspect the Invoice
- Make sure you understand what charges added to your invoice by analyzing it thoroughly. If you've received previous invoices from the same business, compare preceding invoices to the current bill and look for any differences or similarities. The company could have neglected to include payment acknowledgment from the earlier invoice and added both totals to the current bill. So it is vital to provide documentation that proves payment from the past invoices to support your claim.
-
Check your Accounting Records
- Compare the amount of the current invoice to your own financial records and figure out the difference to determine if a discrepancy exists. If the business states that you failed to pay a bill, include a photocopy of the canceled check to indicate that you had sent a payment or any other type of proof of payment. Bank statements depicting the cleared check payment are also helpful.
-
Review the Business Contract
- Find out if there is an agreed-upon method for resolving billing issues, written in the contract provided by the company with whom you are doing business. Whether you owe a payment depends on whether you've received the goods or services, or not. If the business bills you for services or goods that you haven't received yet, then you don't owe them a payment.
-
Contact the Company
- Inform the creditor that you are questioning the amount of the bill you recently received. Listen to the representative's explanation of the invoice amount and if you disagree with the explanation, explain to the representative that you don't agree because the invoice amount is different from your financial records. The discrepancy could be a clerical mistake.
- If the error is amendable via phone call, ask the representative to send you an amended invoice. If you resolve the dispute by phone, send a written notification of the resolved matter to the company that confirms the settlement. Don't count on any statement that was made by the representative until you are in possession of written confirmation of the new agreement, like an amended invoice.
-
Collect Proof to Support Your Dispute
- If you have past receipts or any other financial records that support the fact that you were mistakenly charged, photocopy them and send the proof to the creditor. Do some investigation and research the reputation of the business if you are new to doing business with them. It would be helpful to find out if this company has had billing issues in the past or if it is an ongoing problem.
Understanding Your Rights Under the Fair Credit Billing Act
If you are disputing a bill, especially for services not rendered, it's important to understand your legal rights. The Fair Credit Billing Act (FCBA) provides protection for consumers facing billing errors on credit card accounts, including:
- Unauthorized charges
- Incorrect amounts
- Charges for goods or services not received
- Billing statements sent to the wrong address despite proper notification
- Failure to post payments correctly
To take advantage of these protections:
- Dispute the charge in writing within 60 days of receiving the billing statement.
- Your creditor must respond within 30 days to acknowledge your dispute.
- The creditor must resolve the issue within two billing cycles (not exceeding 90 days).
- You have the right to withhold payment on the disputed amount while the issue is under investigation.
- Your credit score cannot be negatively impacted during the dispute process.
For medical or utility bills, different consumer protection laws apply. Some states have additional protections that govern billing disputes for essential services.
Requirements Creditors Must Adhere to When a Bill of Service is in Dispute
Some requirements have time limits that the creditor must abide by, if you send written notice informing them of their error, for instance:
- The creditor must acquiesce to the notice of the error within 30 days of receiving it.
- If the creditor is at fault, they have two billing cycles to make adjustments to the account and amend the billing mistake or provide an explanation for the billing amount.
How to Dispute a Bill for Services Not Rendered
A common billing dispute occurs when consumers are charged for services they never received. If this happens, follow these steps:
- Verify the contract or agreement – If you signed an agreement, check whether the service was actually required or fulfilled.
- Gather proof – Collect any evidence that supports your claim, such as emails, appointment cancellations, or work orders.
- Contact the service provider – Call or email the company to discuss the issue and request an adjustment.
- Submit a written dispute – If the issue remains unresolved, formally dispute the charge by sending a letter via certified mail.
- Contact consumer protection agencies – If the provider refuses to cooperate, escalate the matter to the Federal Trade Commission (FTC), Better Business Bureau (BBB), or state regulatory agencies.
- Consider legal action – If the dispute remains unresolved, consult with an attorney to explore legal options, such as filing a small claims lawsuit.
Sample Dispute Letter for Billing Errors
When disputing a bill, a well-structured written dispute letter is essential. Use the following template:
[Your Name][Your Address][City, State, ZIP Code][Email Address][Date]
[Creditor's Name][Company’s Billing Department][Company Address][City, State, ZIP Code]
Subject: Billing Dispute for [Invoice Number or Account Number]
Dear [Creditor’s Name or Billing Department],
I am writing to formally dispute an incorrect charge on my [credit card, utility, medical, or service] bill dated [Billing Date]. The bill includes a charge of [$Amount] for [describe the service or product], which was not received/rendered.
As per my understanding of the Fair Credit Billing Act (if applicable) and my agreement with your company, I request a correction to my account. Enclosed, please find copies of [receipts, cancellation confirmations, service agreements, or any other supporting documents] proving that the charge is incorrect.
Please respond to this dispute within 30 days, per federal guidelines, and issue a corrected bill. If I do not receive a resolution, I will pursue further action by filing a complaint with the Federal Trade Commission (FTC) and my state’s consumer protection agency.
I appreciate your prompt attention to this matter. Please confirm receipt of this letter and provide a timeline for resolution.
Sincerely,
[Your Name]
Frequently Asked Questions:
-
What should I do if my dispute is ignored by the creditor?
- If your dispute is ignored, escalate the matter by filing complaints with the FTC, BBB, or your state’s consumer protection agency. You can also seek legal assistance.
-
Can I refuse to pay a bill for services not received?
- Yes, under the Fair Credit Billing Act, you have the right to dispute the charge and withhold payment on the disputed amount while it’s being investigated.
-
What happens if the company continues to bill me despite my dispute?
- If a company continues billing you unfairly, you can take legal action or file a formal complaint with the Consumer Financial Protection Bureau (CFPB).
-
How long do I have to dispute a billing error?
- The FCBA requires disputes to be filed within 60 days of receiving the statement. However, for non-credit billing disputes, state laws may provide additional protections.
-
What agencies can help if I need to escalate my dispute?
- Agencies such as the FTC, CFPB, BBB, state attorney general offices, and local consumer protection agencies can assist with billing disputes.
Find out about your rights as a consumer and if you decide you need legal representation against a creditor, post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and have an average of 14 years of experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.