Chargeback Dispute Kit - Alabama

CHARGEBACK DISPUTE KIT — ALABAMA

PART A: FEDERAL LEGAL FRAMEWORK

Credit Card Disputes — Regulation Z / Truth in Lending Act (TILA)

The Fair Credit Billing Act (FCBA), codified at 15 U.S.C. § 1666 and implemented by Regulation Z (12 C.F.R. § 1026.13), governs billing error disputes for credit card transactions.

Key Protections:

What Qualifies as a "Billing Error" Under TILA:

☐ Unauthorized charge or charge by person not authorized to use the account
☐ Charge for goods/services not accepted or not delivered as agreed
☐ Charge for which you request documentary evidence and the creditor fails to provide it
☐ Computational or accounting error
☐ Charge for which the creditor failed to properly credit a payment or return
☐ Charge for which the creditor failed to mail or deliver a periodic statement to the consumer's last known address
☐ Any other billing error defined in 15 U.S.C. § 1666(b)

Where to Send the Dispute:
The written notice must be sent to the "billing inquiries" address disclosed on the periodic statement — NOT the payment address.

Debit Card / Electronic Fund Transfer Disputes — Regulation E / EFTA

The Electronic Fund Transfer Act (EFTA), codified at 15 U.S.C. § 1693 et seq. and implemented by Regulation E (12 C.F.R. § 1005), governs disputes for debit card and electronic fund transfer transactions.

Consumer Liability Tiers for Unauthorized Transfers:

Error Resolution Timeline:

Provisional Credit:

• If the bank cannot resolve the investigation within the applicable 10-business-day period (20 business days for the specified new-account rule), it generally must provisionally credit the account to use the extended investigation period, subject to the written-confirmation and securities-account exceptions
• Consumer has full use of provisionally credited funds during investigation
• If the bank determines no error occurred, it must give the written explanation and debit notice required by § 1005.11(d), with the rule's five-business-day protection for specified third-party items and preauthorized transfers

Burden of Proof:
In an action involving consumer liability for an unauthorized electronic fund transfer, 15 U.S.C. § 1693g(b) places the authorization and liability-condition burden on the financial institution.

PART B: CHARGEBACK REASON CODES — COMMON CATEGORIES

Category 1: Fraud / Unauthorized Transaction

• Card not present fraud (online, phone, mail order)
• Counterfeit card used
• Card stolen or lost
• Account takeover
• Never authorized the recurring charge

Category 2: Goods or Services Not Received

• Ordered merchandise never delivered
• Service paid for but never provided
• Merchant went out of business before delivery
• Digital goods/content never made available

Category 3: Goods or Services Not as Described

• Merchandise materially different from description
• Defective or damaged goods received
• Counterfeit or misrepresented product
• Service quality significantly below what was promised

Category 4: Duplicate Charge

• Charged twice for the same transaction
• Both a chip and manual entry processed

Category 5: Incorrect Amount

• Charged more than the agreed-upon price
• Incorrect currency conversion
• Tip amount altered after signing

Category 6: Credit Not Processed

• Returned merchandise but credit never issued
• Canceled service but refund not provided
• Merchant promised credit but never processed

Category 7: Subscription / Recurring Billing

• Canceled subscription but charges continued
• Trial period ended and charged without consent
• Amount of recurring charge changed without notice
• Never signed up for the subscription

PART C: TIMELINE CHART — ALL CRITICAL DEADLINES

Credit Card (Reg Z) Deadlines

DAY 0: Statement date showing billing error
|
|--- DAY 60: DEADLINE — Written dispute must be RECEIVED by creditor
|         (Send well before this date via certified mail)
|
|--- After receipt of dispute:
|    |--- 30 days: Creditor must send written acknowledgment
|    |--- 2 billing cycles (max 90 days): Creditor must resolve
|
|--- During investigation:
     - Creditor cannot report amount as delinquent
     - Creditor cannot restrict or close account solely for dispute
     - Consumer may withhold payment on disputed amount

Debit Card (Reg E) Deadlines

DAY 0: Learn of unauthorized transfer or error
|
|--- 2 BUSINESS DAYS: Report to limit liability to $50
|
|--- DAY 0: Statement date showing error
|
|--- DAY 60: DEADLINE — Must notify bank of error
|
|--- After bank receives notice:
|    |--- 10 business days: Bank must complete investigation
|    |         OR provide provisional credit
|    |--- 45 days: Final investigation deadline (standard)
|    |--- 90 days: Final investigation deadline (POS/new acct/foreign)
|
|--- If provisional credit reversed:
     - Bank must give the written debit notice required by § 1005.11(d)(2) and provide the rule's five-business-day protection for specified third-party items and preauthorized transfers

PART D: THREE-LETTER DISPUTE KIT

LETTER 1: INITIAL DISPUTE LETTER TO CARD ISSUER / BANK

[__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

[________________________________]
[Card Issuer/Bank Name]
[Billing Inquiries Department / Dispute Department]
[________________________________]
[________________________________]

Re: Billing Error Notice / Dispute of Unauthorized Transaction
Account Number ending in: [____]
Disputed Transaction Amount: $[________________________________]
Transaction Date: [__/__/____]
Merchant Name: [________________________________]

Dear Billing Inquiries Department:

I am writing pursuant to the Fair Credit Billing Act, 15 U.S.C. § 1666, and Regulation Z, 12 C.F.R. § 1026.13 [OR the Electronic Fund Transfer Act, 15 U.S.C. § 1693f, and Regulation E, 12 C.F.R. § 1005.11] to dispute the following transaction(s) appearing on my account statement dated [__/__/____]:

Reason for Dispute

(Select and complete the applicable section. Delete inapplicable sections.)

☐ Unauthorized Transaction / Fraud
I did not authorize this transaction. I did not make this purchase, nor did I authorize anyone to use my account for this transaction. My card was ☐ lost ☐ stolen ☐ never out of my possession (card-not-present fraud). I discovered the unauthorized charge on [__/__/____].

☐ Goods or Services Not Received
I ordered [________________________________] from [________________________________] on [__/__/____]. The expected delivery/performance date was [__/__/____]. As of the date of this letter, I have not received the goods/services. I contacted the merchant on [__/__/____] and [________________________________] (describe merchant response or non-response).

☐ Goods or Services Not as Described / Defective
I received [________________________________] on [__/__/____]. The goods/services were materially different from what was described because: [________________________________]. I contacted the merchant on [__/__/____] to resolve the issue. The merchant ☐ refused to resolve ☐ did not respond ☐ offered an inadequate resolution: [________________________________].

☐ Duplicate Charge
I was charged twice for the same transaction. The original charge was on [__/__/____] for $[________________________________]. The duplicate charge was on [__/__/____] for $[________________________________].

☐ Incorrect Amount
The correct amount should be $[________________________________]. I was charged $[________________________________], resulting in an overcharge of $[________________________________].

☐ Credit Not Processed
I returned merchandise / canceled services on [__/__/____]. The merchant agreed to issue a credit of $[________________________________] on [__/__/____]. The credit has not appeared on my statement. Return tracking number (if applicable): [________________________________].

☐ Subscription / Recurring Charge Not Authorized
I canceled my subscription/recurring service with [________________________________] on [__/__/____] via ☐ phone ☐ email ☐ online ☐ letter. Confirmation number: [________________________________]. Despite cancellation, I was charged $[________________________________] on [__/__/____].

Actions Already Taken

Request

Pursuant to 15 U.S.C. § 1666 [or § 1693f], I request that you:

1. Investigate this billing error and issue a chargeback for the disputed amount of $[________________________________]
2. Credit my account for the disputed amount
3. Remove any finance charges, late fees, or other charges related to the disputed amount
4. Block future recurring charges from this merchant (if applicable)
5. Provide written confirmation of the resolution

Under Regulation Z, you must acknowledge receipt of this notice within 30 days and resolve the investigation within 2 billing cycles (maximum 90 days). [Under Regulation E, you must complete your investigation within 10 business days or provide provisional credit to my account.]

During the investigation, I understand that I am not required to pay the disputed amount and you may not report the disputed amount as delinquent to any credit reporting agency.

Enclosed Evidence

☐ Copy of account statement with disputed transaction(s) highlighted
☐ Receipts or order confirmations
☐ Correspondence with merchant (emails, chat logs, letters)
☐ Screenshots of product listing or service description
☐ Delivery tracking information
☐ Return tracking information / RMA confirmation
☐ Cancellation confirmation
☐ Photos or videos of defective/non-conforming goods
☐ Police report (for fraud/unauthorized use)
☐ Other: [________________________________]

Sincerely,

Signature: ________________________________________

Printed Name: [________________________________]

Address: [________________________________]

Phone: [________________________________]

Account Number ending in: [____]

LETTER 2: FOLLOW-UP LETTER — PROVISIONAL CREDIT DENIED OR INVESTIGATION UNSATISFACTORY

[__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

[________________________________]
[Card Issuer/Bank Name]
[Billing Inquiries Department / Dispute Department]
[________________________________]
[________________________________]

Re: Second Request — Dispute of Transaction on Account ending in [____]
Original Dispute Date: [__/__/____]
Dispute Reference Number: [________________________________]
Disputed Amount: $[________________________________]

Dear Billing Inquiries Department:

I am writing to follow up on my billing error dispute submitted on [__/__/____] regarding the transaction(s) described in my original dispute letter (copy enclosed). I received your response dated [__/__/____] indicating that [________________________________] (describe the bank's response).

Why the Resolution Is Inadequate

[________________________________]
[________________________________]
[________________________________]

Additional Evidence

Since my original dispute, I have obtained the following additional evidence:

☐ [________________________________]
☐ [________________________________]
☐ [________________________________]

Legal Basis for Continued Dispute

For Credit Card Disputes (Reg Z):
Under 15 U.S.C. § 1666(b)(3), a billing error includes a charge for goods or services not accepted or not delivered as agreed. Under 12 C.F.R. § 1026.13(f), if the creditor determines no error occurred, it must provide a written explanation and, upon request, copies of documentary evidence.

For Debit Card Disputes (Reg E):
Under 15 U.S.C. § 1693f(a), the financial institution bears the burden of proof. Under 12 C.F.R. § 1005.11(c)(2), if no error found, the institution must provide written findings and inform the consumer of the right to request supporting documents.

Request

1. Reconsider your determination and issue a credit for $[________________________________]
2. Provide copies of all documents relied upon in reaching your determination
3. Note that 15 U.S.C. § 1666(e) provides a forfeiture capped at $50 for specified FCBA noncompliance, while § 1693f(e) permits treble damages only if a court makes one of its specified bad-faith or knowing-and-willful findings

I reserve all rights under federal and Alabama state law.

Sincerely,

Signature: ________________________________________

Printed Name: [________________________________]

Address: [________________________________]

Phone: [________________________________]

Account Number ending in: [____]

Enclosures:

• Copy of original dispute letter and certified mail receipt
• Copy of bank's response
• Additional evidence

LETTER 3: REGULATORY COMPLAINT LETTER

[__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

Primary Regulator (select one):

☐ Consumer Financial Protection Bureau (CFPB)
P.O. Box 4503
Iowa City, IA 52244
Online: consumerfinance.gov/complaint

☐ Office of the Comptroller of the Currency (OCC) (national banks)
Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010

☐ Federal Reserve Board (state-chartered Fed member banks)

☐ FDIC (state-chartered non-Fed-member banks)

☐ NCUA (credit unions)

☐ Alabama Attorney General — Consumer Protection Division
501 Washington Avenue
Montgomery, AL 36130

☐ Alabama State Banking Department
401 Adams Avenue, Suite 680
Montgomery, AL 36104

Re: Complaint Against [________________________________] for Violation of [Regulation Z / Regulation E]
Account Number ending in: [____]
Original Dispute Date: [__/__/____]

Dear Sir or Madam:

I am filing this complaint because [________________________________] has failed to comply with the error resolution requirements of [the Fair Credit Billing Act (15 U.S.C. § 1666) and Regulation Z / the Electronic Fund Transfer Act (15 U.S.C. § 1693f) and Regulation E].

Summary of Dispute

On [__/__/____], I submitted a written billing error notice to [________________________________] regarding a disputed transaction of $[________________________________] with merchant [________________________________]. (Summarize the dispute.)

Regulatory Violations

☐ Failed to acknowledge dispute within 30 days (15 U.S.C. § 1666(a)(A))
☐ Failed to resolve within 2 billing cycles / 90 days (15 U.S.C. § 1666(a)(B))
☐ Reported disputed amount as delinquent (15 U.S.C. § 1666(c))
☐ Failed to provide provisional credit within 10 business days (15 U.S.C. § 1693f(c))
☐ Failed to complete investigation within 45/90 days (Regulation E)
☐ Failed to provide written explanation of findings
☐ Restricted or closed account in retaliation for dispute
☐ Other: [________________________________]

Alabama DTPA Exemption Gate

Ala. Code § 8-19-7(3) excludes regulated banks and bank affiliates from the Deceptive Trade Practices Act. Do not plead an ADTPA chargeback claim against a bank or affiliate regulated by one of the agencies listed in that subsection. If the respondent is not exempt, counsel must still identify a separate § 8-19-5 practice, a consumer transaction, monetary damage, the 15-day demand, and the limitations period before adding a state claim.

Resolution Requested

1. Investigation of the financial institution for the violations described above
2. Order requiring compliance with error resolution procedures
3. Credit of $[________________________________] to my account
4. Removal of any adverse credit reporting related to this dispute
5. Appropriate enforcement action

Enclosed Documents

☐ Copy of original dispute letter with certified mail receipt
☐ Copy of follow-up letter with certified mail receipt
☐ Copy of bank's response(s)
☐ Copy of account statements showing disputed transaction(s)
☐ All supporting evidence
☐ Timeline of events

Sincerely,

Signature: ________________________________________

Printed Name: [________________________________]

Address: [________________________________]

Phone: [________________________________]

Email: [________________________________]

PART E: ALABAMA-SPECIFIC CONSUMER PROTECTIONS

Alabama Deceptive Trade Practices Act Screen

Before adding an ADTPA count, counsel must confirm:

• the respondent and activity are not exempt under § 8-19-7, including the regulated-bank exemption;
• the claimant is a natural person who bought goods or services for personal, family, or household use;
• an identified § 8-19-5 practice caused monetary damage;
• the § 8-19-10(e) written demand was communicated at least 15 days before filing; and
• the action satisfies § 8-19-14's one-year discovery period and four-year outer limit, including its special rule for a contract or warranty longer than three years.

Section 8-19-10 provides actual damages or $100, whichever is greater, or up to three times actual damages in the court's discretion, plus fees and costs for a successful action or counterclaim. These are alternatives and conditions, not automatic per-violation awards.

Alabama State Banking Department

The Alabama State Banking Department regulates state-chartered banks in Alabama:

• Phone: (334) 242-3452
• Website: banking.alabama.gov
• File complaints regarding state-chartered banks that fail to comply with dispute resolution requirements

Filing Complaints

PART F: EVIDENCE ORGANIZATION CHECKLIST

Transaction Records

☐ Account statement(s) showing disputed transaction(s) — highlighted
☐ Receipt or order confirmation
☐ Authorization or reference number
☐ Screenshot of online transaction history

Merchant Communications

☐ Emails between you and the merchant
☐ Chat logs or transcripts
☐ Letters sent to/from the merchant
☐ Records of phone calls (date, time, representative name, summary)

Delivery / Service Evidence

☐ Shipping tracking information
☐ Delivery confirmation
☐ Photos of damaged or incorrect merchandise
☐ Videos showing defect or non-conformity

Return / Cancellation Evidence

☐ Return tracking number and delivery confirmation
☐ RMA number and correspondence
☐ Cancellation confirmation
☐ Date and method of cancellation request

Fraud-Specific Evidence

☐ Police report
☐ FTC Identity Theft Report
☐ Statement that you did not authorize the transaction
☐ Evidence of card being in your possession during the fraudulent transaction

PART G: PRACTICE TIPS FOR MAXIMIZING CHARGEBACK SUCCESS

Timing

1. Act quickly. The 60-day period runs from transmission of the first statement reflecting the error, not the transaction date.
2. Send written notice even if you call first. Written notice creates a legally enforceable record.
3. Use certified mail with return receipt. This provides proof of delivery and date received.

Documentation

4. Document everything from day one. Keep a log of every call, email, and letter.
5. Organize evidence by category. Strong documentation significantly improves success rates.
6. Include only relevant evidence. Focus on the most compelling documents.

Strategy

7. Contact the merchant first (when appropriate). Attempting merchant resolution strengthens chargebacks for non-fraud disputes.
8. Match your reason code. Frame your dispute to fit the appropriate category.
9. Be specific and factual. State facts with dates, amounts, and reference numbers.
10. Escalate systematically. Use Letter 1, then Letter 2, then Letter 3.

Legal Leverage

11. Cite the statute. Referencing TILA (15 U.S.C. § 1666) or EFTA (15 U.S.C. § 1693f) shows you understand your rights.
12. State remedies accurately. Section 1666(e) provides a forfeiture capped at $50 for specified FCBA noncompliance. Section 1693f(e) permits treble damages only on the statutory court findings.
13. File a CFPB complaint. The CFPB forwards complaints to the institution, generating faster responses.
14. Screen Alabama DTPA applicability. A regulated bank or affiliate is exempt under § 8-19-7(3); any nonexempt claim still requires the consumer, practice, monetary-damage, demand, and limitations gates.

SOURCES AND REFERENCES

• Fair Credit Billing Act, 15 U.S.C. § 1666: https://www.law.cornell.edu/uscode/text/15/1666
• Electronic Fund Transfer Act, 15 U.S.C. § 1693f: https://www.law.cornell.edu/uscode/text/15/1693f
• Regulation Z, 12 C.F.R. § 1026.13: https://www.consumerfinance.gov/rules-policy/regulations/1026/13/
• Regulation E, 12 C.F.R. § 1005.11: https://www.consumerfinance.gov/rules-policy/regulations/1005/11/
• Alabama Deceptive Trade Practices Act, Ala. Code § 8-19-1 et seq.: https://law.justia.com/codes/alabama/title-8/chapter-19/
• Alabama Attorney General — Consumer Protection: https://www.alabamaag.gov
• Alabama State Banking Department: https://banking.alabama.gov
• Consumer Financial Protection Bureau: https://www.consumerfinance.gov/complaint/

This template is provided for informational purposes only and does not constitute legal advice. Chargeback disputes involve strict deadlines and procedural requirements under federal law. Consult a qualified attorney licensed in Alabama for advice specific to your situation.