What to do if…
you are charged for an old negative balance you believed was settled

What to do now

1. Save the record before making calls.

   • Take screenshots or photos of the charge, statement entry, letter, email, or credit-report entry.
   • Note the date, amount, account involved, and the name of the company contacting you.
   • Gather any settlement confirmation, paid-in-full message, final statement showing a zero balance, receipt, or reference number.

2. Use the matching dispute route.

   • Bank-account debit or electronic transfer: contact your bank or credit union immediately. Say that you dispute the transaction and ask whether its electronic fund transfer error process applies. For a covered electronic fund transfer error, give notice as soon as possible and generally no later than 60 days after the institution sends the statement first showing the alleged error. The institution may ask for written confirmation within 10 business days after an oral notice. Also ask for an itemized explanation if the transaction appears to be an old-balance adjustment rather than an electronic transfer.
   • Credit-card statement charge: call the card issuer promptly and send a written billing-error notice to the address disclosed for billing inquiries. To preserve federal billing-error rights, the issuer should receive the notice no later than 60 days after it transmitted the first statement reflecting the alleged error.
   • Debt-collector notice: confirm that the collector is legitimate. Use the validation notice and dispute the debt in writing by the end date stated in that notice, generally within a 30-day validation period. If you dispute the debt in writing within that period, collection of the disputed amount generally must pause until the collector sends verification. Send copies of supporting records and keep proof of delivery.
   • Original creditor billing you directly: ask in writing for an itemized accounting showing the original balance, payments, settlement terms, fees, interest, and the reason the amount returned.

3. Protect essential payments.

   • If the transaction caused overdraft fees or leaves you unable to cover essentials, tell your bank that the item is disputed and ask what fee relief or temporary account options are available.
   • Ask whether any further debits are pending and what steps are available if you did not authorize them.
   • Check upcoming rent, utility, food, and transport payments before changing accounts or deposits.

4. Send a short written dispute.

   • State: “I dispute this balance. I believed the account was settled on or about [month and year]. Please send an itemized explanation showing how the amount was calculated and correct the account if the balance is wrong.”
   • Include copies of your strongest records.
   • Keep a copy of what you send and proof of submission or delivery.

5. Check your credit reports if the balance may have been reported.

   • Use the official free-report site.
   • If the balance appears incorrectly, dispute it with each credit-reporting company showing the error and with the company that furnished the information.
   • Send copies of supporting documents, not originals, and keep records of submission.

6. Use a complaint route if the company does not resolve the issue.

   • You can submit a complaint to the Consumer Financial Protection Bureau about covered bank-account, credit-card, credit-reporting, debt-collection, or money-transfer problems.
   • Attach your timeline, copies of your dispute, the response you received, and proof of submission.

7. Use identity-theft steps only if there are signs the debt is not yours.

   • If you see accounts you did not open or activity you did not authorize, use the federal identity-theft site.
   • A credit freeze or fraud alert can help protect against new credit accounts being opened in your name. It does not reverse an existing charge.