Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change frequently. For advice specific to your situation, consult a licensed attorney in your area.
From billing errors to price gouging to unauthorized charges, overcharging takes money from your pocket unfairly. Whether it's a simple mistake or deliberate fraud, you have rights to dispute charges and recover what you're owed. For more information on your consumer rights, visit the FTC Consumer Protection website.
Review Every Bill: Studies show billing errors are extremely common - especially in healthcare and utilities. Always review charges before paying and dispute anything that looks wrong.
Types of Overcharging
Billing Errors
- Double charges
- Wrong price applied
- Quantity errors
- Charges for unreceived items
- Miscalculated totals
Unauthorized Charges
- Services you didn't request
- Undisclosed fees
- Auto-renewals without consent
- Upgrades you didn't authorize
Price Gouging
- Emergency price increases
- Essential goods during crisis
- Exploiting shortage situations
- Illegal in most states
Deceptive Pricing
- Advertised price not honored
- Hidden fees added later
- Bait and switch
- False comparison prices
Keep All Receipts: Your proof of what you agreed to pay is essential. Without original quotes, receipts, or advertisements, disputing charges becomes much harder.
Healthcare Billing
Common Healthcare Overcharges
- Duplicate billing for same service
- Upcoding (billing for more expensive service)
- Unbundling (billing separately for bundled services)
- Charges for never-rendered services
- Wrong patient charges
How to Dispute
- Request itemized bill
- Compare to Explanation of Benefits
- Research fair prices
- Contact billing department
- File appeal with insurer
No Surprises Act
- Protects from surprise out-of-network bills
- Emergency services at in-network rates
- Good faith estimates required
- Dispute process for excess charges
Utility Overcharges
Common Issues
- Estimated meter reads (high)
- Wrong rate applied
- Billing for wrong address
- Hidden surcharges
- Meter malfunction
Dispute Process
- Compare to usage history
- Request meter test
- Contact customer service
- File with public utility commission
Your Rights
- Clear billing statements
- Right to dispute charges
- Can't be disconnected during dispute
- Meter testing on request
Utility Commission Complaints: State utility commissions regulate electric, gas, and water companies. They investigate billing disputes and can order corrections.
Retail and Service Overcharges
Scanner Overcharges
- Price scanned higher than displayed
- Sale price not applied
- Many states have scanning accuracy laws
- Some require item free or at lower price
Service Industry
- Final bill exceeds estimate
- Unauthorized additional work
- Time padding
- Inflated parts prices
Auto Repair
- Must authorize work over estimate
- Written estimate required in most states
- Return old parts if requested
- Itemized invoice required
Credit Card Disputes
Valid Dispute Grounds
- Charged wrong amount
- Didn't receive item/service
- Charged for cancelled order
- Duplicate charges
- Unauthorized charges
Dispute Process
- Contact merchant first (usually)
- File with card issuer
- Provide documentation
- Issuer investigates
- Provisional credit while pending
Time Limits
- 60 days for billing errors (FCBA)
- 120 days for quality disputes (card rules)
- Act quickly for best results
Document Before Disputing: Gather evidence of correct price, quotes, or advertised amounts before filing. Your dispute is stronger with documentation.
Taking Legal Action
Demand Letter
- Specify incorrect charge
- Show correct amount owed
- Include supporting evidence
- Demand refund of difference
- Set deadline
Small Claims Court
- Good for smaller overcharges
- Bring all documentation
- Show original price/quote
- Demonstrate overcharge amount
State Consumer Protection
- May provide additional damages
- Some states have specific pricing laws
- File complaint with state AG
Price Gouging Laws
What's Prohibited
- Excessive price increases during emergency
- Usually 10-25% above normal price
- Essential goods and services
- State emergency declaration triggers
Reporting
- State Attorney General hotlines
- FTC complaints
- Document prices before and during
- Keep receipts
Remedies
- Refund of excessive amount
- State enforcement actions
- Civil penalties for businesses
- Private lawsuits in some states
Prevention
Before Paying
- Get written quotes
- Read contracts carefully
- Ask about all fees
- Compare prices
- Screenshot advertised prices
Regular Monitoring
- Review all statements monthly
- Set up transaction alerts
- Compare to usage patterns
- Keep records organized
Fight Overcharges
Generate a demand letter for refund of excessive or unauthorized charges.
Create Your Letter