What is the Fair Credit Billing Act?

The Fair Credit Billing Act is a federal law that applies to all states, including Delaware, and protects consumers from predetermined and unjust billing practices. It is enforced by the Federal Trade Commission (FTC) and regulates how creditors must handle billing disputes involving consumers. Under this law, creditors are required to investigate any billing errors that are brought to their attention within a certain amount of time. If a billing error is found, creditors must correct the mistake and provide the consumer with a written explanation of the error and the process for dealing with the error. The act also protects consumers from unfair or deceptive practices. Creditors are prohibited from assessing any charges for services not agreed to by the consumer, such as late fees and interest rate charges. If a consumer believes s/he is a victim of unfair or deceptive practices, they have the right to dispute the charges and have the creditor investigate. Additionally, the act prohibits creditors from threatening or harassing consumers over billing disputes. Creditors are only allowed to contact the consumer to inquire about the dispute. The Fair Credit Billing Act is an important law that protects consumers from unfair and deceptive billing practices. It ensures that creditors are held accountable for any billing mistakes and that consumers have access to the correct information about their accounts. It is important for all consumers to be familiar with their rights in order to protect themselves.

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What is the Fair Credit Billing Act?

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