A balance dispute should be broken down transaction by transaction so everyone can see what is actually agreed and what is not.
Saying “I dispute the balance” is often too vague. A strong dispute starts with an agreed opening point and reconstructs charges, credits, payments, refunds, adjustments and interest until the difference is identified.
This matters because debt collection, arrears reporting and remedies can all depend on whether the claimed sum is genuinely due.
Key points
- Ask for a statement or ledger showing how the balance was calculated.
- Identify each disputed component and the reason for the dispute.
- Keep proof of payments and promised credits.
- If collection or credit reporting continues, make sure the organisation knows the balance is specifically disputed.
Reconstruct the account
Start from the last statement or balance you accept. Add each subsequent charge and subtract each payment or credit. Mark anything unsupported or duplicated. This simple reconciliation often reveals the real disagreement faster than long correspondence.
Different disputes need different evidence
- Payment not credited - bank statement or payment reference
- Cancelled service still billed - cancellation confirmation and effective date
- Refund not applied - refund confirmation and transaction record
- Charge never agreed - contract/order evidence
- Early termination fee disputed - contractual term and reason for cancellation
What “in dispute” does and does not do
A dispute should cause a responsible organisation to investigate, but the phrase does not automatically freeze every contractual consequence. If you want collection paused, credit reporting corrected or interest stopped, ask explicitly and explain the basis.
In practice
- Send a concise reconciliation table rather than a narrative alone.
- Pay any genuinely undisputed amount where appropriate, making clear what remains disputed.
- Ask the creditor to answer each disputed line item.
What to do
A practical next-step plan
- Request the full transaction history.
- Build a balance reconciliation.
- Identify evidence for each disputed item.
- Write to the creditor with the exact correction or credit sought.
- Ask it to explain any item it maintains is due.
- Check subsequent statements and credit reporting for consistency.
Common traps
Things that often confuse the issue
- A collections agent may only see the balance it was sent; challenge the source creditor as well.
- Do not rely on phone assurances without a written record.
- Disputing a balance and disputing a credit-file marker are connected but separate issues.
Evidence worth keeping
Keep credit reporting aligned with the unresolved dispute.
A disputed balance may also be reported to CRAs. The existence of a dispute does not automatically require deletion of accurate history, but the lender must not knowingly report an inaccurate amount/status. Raise the data accuracy issue separately if the reported balance or status cannot be substantiated.
Useful wording.
“My calculation differs by £[x]. The disputed entries are listed below. Please provide the account ledger and contractual basis for each charge, suspend recovery while the valid dispute is investigated, and ensure no inaccurate balance is reported to CRAs.”
Ask for the ledger, not only a closing figure.
Request the transaction history and explanation of disputed entries. If the account has been sold, ask whether the purchaser has a complete statement history or is relying on a transferred closing balance. A debt purchaser remains responsible for fair handling of the dispute within the applicable FCA rules.
FCA rules give a genuine dispute procedural protection.
CONC 7.14 requires regulated firms to suspend recovery where the debt is disputed on valid grounds or what may be valid grounds, investigate and provide details/outcome. Where the dispute is about identity or amount, the firm must establish the borrower or amount. This does not mean that writing “debt disputed” automatically freezes every genuine debt indefinitely; give concrete grounds and evidence.
| Ground | Example |
|---|---|
| Payment missing | Bank statement shows £200 paid but ledger omits it. |
| Fee/interest disputed | Charge not authorised by agreement or calculated on wrong balance. |
| Refund missing | Merchant/lender confirmed credit but account never adjusted. |
| Wrong borrower/account | Identity details or account history do not correspond to you. |
“I dispute the balance” needs a calculation behind it.
Separate opening principal, purchases/advances, contractual interest, fees, payments, refunds, write-offs and adjustments. A lender’s current total is not self-proving, but a consumer’s alternative figure also needs evidence. Build a reconciliation by statement period where possible.
Official sources
Check the rules behind this guide
- FCA Consumer Credit sourcebook (CONC)
- Debt collecting - Financial Ombudsman Service
- FCA CONC 7.14: disputed debt ↗
These are official or primary sources for this topic. Rules, scheme terms and deadlines can change, so check the live source before relying on a formal time limit or procedure.