You can dispute an unauthorized charge on your credit report by contacting the credit bureau reporting the incorrect information and the creditor responsible for the account.
If the charge resulted from identity theft, you can also file an identity theft report and request that fraudulent information be blocked from your credit reports.
An unauthorized charge may appear as an unfamiliar credit card balance, a fraudulent account, an incorrect collection, or a payment history you do not recognize. However, individual credit card transactions usually do not appear separately on credit reports.
This guide explains how to dispute an unauthorized charge on your credit report, gather evidence, remove fraudulent information, and protect yourself from additional identity theft.
Table of Contents
How to Dispute an Unauthorized Charge on Your Credit Report: Step-by-Step
If you discover an unfamiliar account or balance, act promptly. You may need to dispute the credit reporting information and separately report fraudulent transactions to your credit card issuer.
Follow these steps to address the problem.
Step 1: Get Copies of Your Credit Reports
Start by obtaining your credit reports from the three nationwide credit bureaus:
- Equifax
- Experian
- TransUnion
You can access your free credit reports through AnnualCreditReport.com.
Review each report carefully because an unauthorized account may appear on one report but not the others.
Look for unfamiliar credit accounts, incorrect balances, collection accounts, payment activity, and hard inquiries.
A hard inquiry occurs when a lender reviews your credit report in connection with a credit application.
If someone applied for credit using your identity, an unfamiliar inquiry may appear even if the application was rejected.
Write down which credit bureaus display the suspicious information.
Step 2: Identify the Unauthorized Information
Determine exactly what you are disputing.
Common credit report problems include:
- A credit card account you never opened.
- An unfamiliar loan or collection account.
- A fraudulent balance on an existing account.
- Incorrect payment history caused by fraud.
- An unauthorized credit application.
- A duplicate or incorrectly reported debt.
For example, suppose your credit report shows a $3,000 credit card balance from a lender you have never used.
You should investigate whether the account belongs to another consumer, resulted from identity theft, or was reported incorrectly.
If you recognize the credit card account but not a particular purchase, contact the card issuer to dispute the transaction itself.
Disputing credit report information does not automatically reverse a fraudulent purchase.
Step 3: Contact the Creditor or Collection Agency
Contact the company reporting the unauthorized information.
Use the company’s official website or a verified phone number rather than relying on contact information in a suspicious message.
Explain that you found an account, balance, or transaction you did not authorize.
Ask the company to investigate and provide relevant account information.
If the account resulted from identity theft, request that the creditor close or restrict the fraudulent account and correct its reporting.
Keep records of the conversation, including the date, representative’s name, and case number.
If a collection agency is reporting the debt, inform it that you dispute the account.
You may also have separate rights to request debt validation under federal debt collection law.
Step 4: File an Identity Theft Report if Necessary
If someone opened an account or incurred debt using your personal information, report the identity theft through IdentityTheft.gov.
The Federal Trade Commission provides a process for creating an Identity Theft Report and a personalized recovery plan.
Your report can help you request the blocking of fraudulent information from your credit reports.
You may need to provide:
- Proof of your identity.
- Your Identity Theft Report.
- A letter identifying the fraudulent accounts or information.
When a credit bureau receives a complete, qualifying identity theft blocking request, it generally must block the fraudulent information within four business days.
This process differs from an ordinary credit report dispute.
Only use the identity theft blocking procedure for information that actually resulted from identity theft.
Step 5: Gather Evidence for Your Credit Report Dispute
Supporting documents can help the credit bureaus and creditors investigate your complaint.
Unauthorized Charge Dispute Evidence Checklist
- Credit report: Highlight the unauthorized account or inaccurate information.
- Account statements: Show the incorrect balance or transaction.
- Identity Theft Report: Documents suspected identity theft, if applicable.
- Creditor correspondence: Shows previous attempts to resolve the problem.
- Fraud investigation records: Includes any case number or written findings.
- Proof of payment: Helps establish that a reported balance is incorrect.
- Identification documents: Provides identity verification when required.
You do not need every document for every dispute.
For example, if a fraudulent account was opened without your knowledge, your Identity Theft Report and credit report may be particularly important.
Send copies of supporting documents rather than originals.
Step 6: Dispute the Information With the Credit Bureaus
Submit a dispute to each credit bureau displaying the unauthorized information.
You can generally dispute inaccurate information online, by mail, or by phone.
A written dispute creates a useful paper trail.
Your dispute should include your name, address, account details, and a clear explanation of the error.
Identify the specific account or balance and request its removal or correction.
Attach copies of your evidence.
If you submit your dispute by mail, consider using certified mail with a return receipt.
You do not need to pay a credit repair company to dispute inaccurate information.
Federal law gives consumers the right to dispute credit report errors for free.
Sample Letter to Dispute an Unauthorized Charge on Your Credit Report
Use this template to challenge inaccurate information with a credit bureau.
Subject: Formal Dispute of Unauthorized Credit Report Information
Re: Dispute of Unauthorized Account or Balance
Dear Dispute Department,
I am writing to dispute inaccurate information appearing on my credit report.
Creditor Name:
Account Reference:
Disputed Amount: $Amount
I do not recognize or authorize the disputed account or charge listed above.
I request that you investigate this information and remove or correct any information that is inaccurate, incomplete, or cannot be verified.
I have attached a copy of the relevant portion of my credit report and supporting documentation.
If this information resulted from identity theft, I also request that you process my enclosed identity theft documentation under the applicable blocking procedures.
Please provide written confirmation of your investigation results and any corrections made.
Thank you.
Sincerely,
Include only the identity theft paragraph if the information actually resulted from identity theft and you are submitting the required documents.
Keep copies of your letter and supporting records.
Step 7: Wait for the Credit Bureau’s Investigation
Credit reporting agencies generally must investigate disputes within 30 days.
In certain circumstances, the investigation period may extend to 45 days.
The credit bureau will usually contact the company that supplied the disputed information.
That company must investigate the information and report its findings.
If the information is inaccurate, incomplete, or cannot be verified, the credit bureau must correct or delete it as appropriate.
You should receive the investigation results and an updated credit report if changes were made.
Remember that identity theft blocking requests follow a separate process with different requirements and deadlines.
Step 8: Review Your Updated Credit Report
After receiving the investigation results, obtain or review your updated credit report.
Confirm that the unauthorized account, incorrect balance, or fraudulent information has been corrected.
Check all three credit bureaus.
An item corrected on one report may still appear on another.
If the creditor previously supplied inaccurate information to multiple credit bureaus, it generally must notify the bureaus to which it provided that information when it determines a correction is necessary.
Continue monitoring your reports to make sure the fraudulent information does not reappear improperly.
Can You Dispute an Unauthorized Credit Card Transaction Through a Credit Bureau?
Not usually as a direct transaction dispute.
Credit reports generally show account-level information, such as balances, payment history, credit limits, and account status.
They do not normally list individual purchases.
If someone used your existing credit card without permission, contact the card issuer immediately.
Report the unauthorized transaction and ask the issuer to investigate it.
You may also need to request a replacement card.
Under federal credit card protections, your liability for unauthorized use is generally limited to $50, and many card issuers offer policies that provide additional protection.
If the fraudulent transaction caused an incorrect balance or delinquency on your credit report, dispute that inaccurate reporting separately.
How to Remove a Fraudulent Account From Your Credit Report
If someone opened a credit account using your identity, the identity theft blocking process may provide a direct way to address the resulting credit report information.
Follow these steps:
- Report the identity theft through IdentityTheft.gov.
- Obtain your Identity Theft Report.
- Identify the fraudulent account on your credit reports.
- Submit the required documents to each affected credit bureau.
- Request that the fraudulent information be blocked.
- Contact the creditor to report the fraudulent account.
A qualifying request generally requires the credit bureau to block identity theft-related information within four business days.
However, the bureau may decline or rescind a block under certain circumstances, including when the information provided is materially incorrect or the account did not result from identity theft.
A block is not a substitute for resolving any fraudulent transactions or compromised accounts directly with financial institutions.
Should You Freeze Your Credit After Discovering an Unauthorized Account?
A credit freeze can help prevent identity thieves from opening additional accounts using your information.
You can freeze your credit for free with Equifax, Experian, and TransUnion.
You must contact each bureau separately.
A freeze generally prevents prospective creditors from accessing your credit report when evaluating new credit applications.
It does not prevent fraudulent purchases on credit accounts that are already open.
You can also request a fraud alert.
An initial fraud alert lasts one year and requires creditors to take additional identity verification steps.
Placing a fraud alert with one nationwide credit bureau requires that bureau to notify the other two.
A credit freeze and fraud alert provide different protections, and you can use both.
What to Do if Your Credit Report Dispute Is Denied
If the credit bureau determines that the disputed information is accurate, review its investigation results.
Request details about how the information was verified.
Compare the findings with your supporting documents.
If you have additional evidence, submit it and explain why the original decision was incorrect.
You can also dispute the information directly with the creditor that reported it.
If the problem remains unresolved, consider submitting a complaint to the Consumer Financial Protection Bureau.
For identity theft cases, make sure you have submitted the required documentation for the separate blocking process.
A dispute denial does not automatically establish that an unfamiliar debt belongs to you.
FAQs: How to Dispute an Unauthorized Charge on Your Credit Report
Q. Can I remove an unauthorized charge from my credit report?
A. Yes. If the information is inaccurate or resulted from identity theft, you can dispute it with the credit bureaus and the creditor. Qualifying identity theft information may also be blocked through a separate process.
Q. How long does it take to remove an unauthorized account?
A. Ordinary credit report disputes generally take up to 30 days, with extensions permitted in certain circumstances. A qualifying identity theft blocking request generally must be processed within four business days after the bureau receives the required documentation.
Q. Will disputing an unauthorized charge hurt my credit score?
A. Filing a credit report dispute does not automatically lower your credit score. However, changes to reported account information can affect credit scores. Removing fraudulent negative information may improve your credit profile, but a specific score increase is not guaranteed.
Q. Can I dispute an unauthorized charge without a police report?
A. Yes. You can submit an ordinary credit report dispute without a police report. For identity theft blocking, an FTC Identity Theft Report from IdentityTheft.gov may satisfy the applicable report requirement when properly completed. Additional documentation may be requested in certain circumstances.
Conclusion
Knowing how to dispute an unauthorized charge on your credit report can help you correct inaccurate information and protect your financial identity.
Start by reviewing all three credit reports, contacting the creditor, and disputing the incorrect information with the affected credit bureaus.
If identity theft is involved, file an identity theft report and request that fraudulent information be blocked.
Monitor your credit reports after the investigation and consider placing a credit freeze to help prevent additional fraudulent accounts.
Disclaimer: This article provides general educational information for U.S. consumers and does not constitute legal or financial advice. Credit reporting rights, fraud protections, investigation deadlines, and dispute outcomes depend on the circumstances and applicable laws. Contact your credit bureau, financial institution, or a qualified professional for guidance regarding your specific situation.
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