What is the Fair Credit Billing Act?

The Fair Credit Billing Act is a federal law enacted in Washington in 1975 to protect consumers from errors in their billing statements. It applies to all consumers who have bank accounts in the state and applies to all types of credit transactions, including credit cards, charge cards, and loan agreements. The Fair Credit Billing Act requires creditors to promptly correct any errors or mistakes in their billing statements. When an error is identified, the consumer must notify the creditor in writing within 60 days from the date of the first billing statement containing the error. The creditor must then send a written response to the consumer within two billing cycles or 90 days, whichever is shorter. If an error is disputed and the creditor cannot resolve it, the consumer can withhold payment on the disputed amount until the dispute is settled. The consumer also has the right to demand that the creditor insert a written statement in the next billing cycle that the amount is in dispute. The consumer is also entitled to receive a refund on the disputed amount if the creditor fails to resolve the dispute within two billing cycles. The Fair Credit Billing Act is an important consumer protection law in Washington and provides strong protection against billing errors. It is important that consumers understand their rights under the law and take advantage of its protections when there is a billing error.

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What is the Fair Credit Billing Act?

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