Credit cards can be our worst enemies if we use them too much and overextend. But under the Fair Credit Billing Act you have rights that allow your credit card company to help you with complaints about defective merchandise or billing errors.

If you use your credit card to buy a product and discover the item was defective and the store didn’t correct the problem by repair or replacement, you may refuse to pay through the credit card issuer. This is called “disputing the charge.” The law does not help you settle the problem, but it may allow you to hold on to your money while it is being settled.

There are limitations to the act: your purchase must total more than $50, you cannot have already paid your credit card company for the purchase, and the merchant must be located in your state or within a 100 mile radius of your address. These limitations do not apply if the creditor mailed you an advertisement for the item or if the merchant is operated by the creditor.

Your creditor has 30 days to acknowledge receipt of your billing complaint. The creditor then has 90 days from the day your letter is received to correct the error or explain why it believes the bill was correct. Once the creditor has explained the bill, it is under no further obligation to you even though you may still believe it is in error.

When you write to the creditor, include your name and mailing address, the date and place of purchase, the item purchased with a description of the defect, the date when you returned the product to the store for repair or replacement, and an explanation of nonrepair or nonreplacement. Send it certified, return receipt requested and keep a copy for yourself.

If the credit company demands payment or threatens to sue you, notify the company by certified mail (return receipt requested) that you are exercising your right pursuant to Section 226.14 of Regulation Z under the Fair Credit Billing Act.

If the creditor’s explanation still doesn’t satisfy you, within 10 days after you receive its explanation you may notify the credit card company (in writing and keep a copy) that you still refuse to pay the disputed amount. The creditor may then report you to the credit bureau and other creditors or reporting agencies, but it must also report your contention that you do not owe any money and it must let you know to whom such reports were made. Once the dispute has been settled between you and your creditor, the creditor must report the resolution to those to whom it reported you as delinquent.

The Fair Credit Billing Act was passed by Congress as an amendment to the Truth in Lending Act. It is enforced by the Comptroller of the Currency for National Banks; the Federal Reserve Board for State Banks in the Reserve System; and the Federal Deposit Insurance Corp. for State Banks not in the Reserve System. Questions or complaints about creditors can be sent to the Federal Trade Commission. The FTC doesn’t represent individuals in private disputes, but information from consumers is vital to enforcement.

Help soon will be available online through COMBAT’s Maine Center for the Public Interest Web site. To be notified when this Web site is activated, or if you want to help make the center a reality, send your name, home address, and e-mail to NeCOMBAT@aol.com. This is for notification only. Consumer complaints or inquiries cannot yet be handled online.

Consumer Forum is a collaborative effort of the Bangor Daily News and Northeast COMBAT. Send questions to Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329. COMBAT is a nonprofit organization with annual dues of $10. For membership information, write to the above address.