What happens if a company doesn't respond to a credit dispute?
Asked by: Mr. Marcos Schoen III | Last update: July 7, 2025Score: 4.3/5 (70 votes)
First, the furnisher may be willing to fix the error, either because it actually does find an error or to maintain good customer relations. Second, if the furnisher does not respond, the credit reporting agency is legally required to delete the disputed information from your credit report.
What if the creditor does not respond to a dispute?
What happens if the creditor does not respond within the required time? If the creditor does not respond within 30 days, TransUnion will delete the information from your credit report.
What happens if a company doesn't respond to a credit card dispute?
If they miss it, they will lose the chargeback dispute by default. Losing the chargeback means not only losing the sales revenue, but also the associated chargeback fees merchants typically must pay to cover the cost of the chargeback process.
How long does a company have to respond to a credit dispute?
A credit bureau will send the dispute to either the creditor or the agency, whichever one reported the debt in the first place. After notification of the dispute, the agency or creditor has 30 days to validate the debt and respond to the credit bureau.
What happens if you don't respond to a payment dispute?
To respond, you'll need to either accept or challenge the payment dispute within 5 calendar days — if you don't respond, the payment institution is likely to find in your buyer's favor.
When Debt Collectors Don't Respond to Your Dispute in 2025
Who loses money when you dispute a charge?
Loss of revenue: Chargebacks result in a direct loss of revenue for merchants, as they have to refund the disputed amount to the customer.
What if my dispute is ignored or I disagree with the results of a credit report dispute?
If your dispute is ignored or you disagree with the results, you still have a few options to fix the issue: Submit a complaint with the Consumer Financial Protection Bureau (CFPB). You have the option to submit a complaint to the CFPB about a consumer reporting agency if the agency has not fixed the dispute.
How often are credit disputes successful?
In fact, 96% of credit cardholders who've filed a dispute had a successful resolution the most recent time, according to the latest LendingTree survey of nearly 2,000 U.S. consumers. Here's a look at the types of disputes consumers file, resolution timelines and more.
What happens if a credit card dispute is denied?
Key takeaways
If the credit card issuer denies the dispute, the customer can request supporting documents and can also appeal the decision or file a complaint with consumer protection agencies. If the dispute is still not resolved, customers can seek legal advice and file a case.
Can you dispute a debt if it was sold to a collection agency?
The Fair Debt Collection Practices Act (FDCPA) grants you the right to request verification of the debt and dispute it if you believe there are errors or discrepancies — and it's often a smart move to do so.
What happens if you don't respond to a credit card lawsuit?
If you do not respond, the court will make a decision without you. This is called a default or default judgment. Whether or not you decide to respond, you can still attempt to negotiate with the debt collector.
Do credit card disputes hurt a business?
From a financial perspective, you not only lose the money, but also the product or service that you sold to the customer as they won't return it. Financial losses aside, chargebacks also have a negative impact on your bank and card network, and this can damage your credit reputation.
What is the 540 day rule for chargebacks?
Within 120 days from the last date the cardholder expects to receive the goods/services (but no more than 540 days from the transaction date). Within 120 days of the date the cardholder was informed that the goods/services would not be provided (but no more than 540 calendar days from transaction).
What happens if you lose a credit dispute?
If your dispute is denied, the charge will go back to your credit card.
What happens if you ignore a lawsuit from a debt collector?
If you get a summons notifying you that a debt collector is suing you, don't ignore it. If you do, the collector may be able to get a default judgment against you (that is, the court enters judgment in the collector's favor because you didn't respond to defend yourself) and garnish your wages and bank account.
What happens if a merchant never responds to a dispute?
Chargeback rules strictly enforce response deadlines - typically between 20 to 45 days from the date the chargeback is filed. Missing a deadline almost always results in a lost chargeback by default.
What happens if a creditor does not respond to a dispute?
Second, if the furnisher does not respond, the credit reporting agency is legally required to delete the disputed information from your credit report. Third, if the error is not corrected, you have a potential legal claim under the FCRA – but ONLY if you have sent a dispute to the credit reporting agency.
Do credit card companies actually investigate disputes?
What does the credit card company have to do? They must acknowledge receipt of your letter within 30 days. Within 90 days or two billing cycles, they must investigate your dispute. They must correct their mistake or explain to you in writing why the bill is correct.
How long does a company have to respond to a credit card dispute?
Within 30 days of getting your complaint, the issuer must acknowledge it in writing, unless the problem has been resolved. Within 90 days of getting your complaint, the issuer must resolve the dispute.
Who usually wins chargebacks?
On average, merchants win approximately 32 out of every 100 chargebacks they decide to contest. This means that if you're a merchant dealing with 100 chargebacks, you can typically expect to successfully recover funds from around 32 of those disputes.
Are credit disputes worth it?
Disputing credit report inaccuracies doesn't affect your credit, but some changes made in response to disputes can help your credit scores. The removal of inaccurate late payments, new-credit inquiries or bankruptcies could result in credit score increases.
What happens if you falsely dispute a credit card charge?
In a Nutshell
The cardholder can face consequences for chargeback abuse, including account freezes, losing one's bank account, damage to one's credit score, and even legal consequences.
What is the 609 loophole?
2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.
What is the best reason to put when disputing a collection?
You should dispute a debt if you believe you don't owe it or the information and amount is incorrect. While you can submit your dispute at any time, sending it in writing within 30 days of receiving a validation notice, which can be your initial communication with the debt collector.
What happens if a company doesn't respond to a CFPB complaint?
Untimely response: If the company does not meet the 15-day deadline to respond to a complaint, the CFPB will mark it as “untimely.” Consumer feedback: Consumers can report their dissatisfaction with a company's response to the Bureau.