What is the Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a law that was adopted in Nebraska and across the United States in 1975. This federal law was intended to protect consumers from unfair or deceptive billing practices when it comes to their credit accounts. The FCBA grants certain rights to consumers who have a credit account, such as the right to dispute any errors in the billing for that account. The FCBA states that if a consumer believes that there has been an error on their credit bill, they may submit a written dispute to their creditor. In turn, the creditor must investigate the dispute and provide the consumer with a written response within two billing cycles, or no more than 90 days. The creditor must also correct any mistakes that they find in the billing and may not charge the consumer additional fees while the dispute is being investigated. The FCBA also limits the amount of money that creditors can collect from consumers if there is an error on the bill. Creditors are not permitted to pursue legal action to collect payments for more than 50 dollars, unless they can prove that they are not liable for the mistake. By providing these protections for consumers, the FCBA helps ensure that people are not unfairly billed for credit account transactions. It also helps to keep the lending process fair, by preventing creditors from charging excessive fees and from attempting to collect payments inaccurately.

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What is the Fair Credit Billing Act?

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