What is the Fair Credit Billing Act?

The Fair Credit Billing Act is a federal law protecting consumers in Kansas and across the United States. It was passed in 1975 and amended in 1988. The law provides consumers with rights and protection against billing errors on their credit accounts. It gives consumers the right to dispute any billing mistakes or errors, regardless of who is responsible for the mistake. The Fair Credit Billing Act requires credit card companies to acknowledge complaints in writing within 30 days and investigate the issue within two billing cycles or 90 days, whichever is shorter. It also gives consumers the right to withhold payment until the investigation is complete. The law also requires creditors to explain why any finance charges or interest charges were made, correct any billing mistakes, remove any late fees caused by the mistake, and if appropriate, reverse any finance charges that were made. If a creditor fails to comply with any of these guidelines, the consumer can sue for damages.

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What is the Fair Credit Billing Act?

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