What is the Fair Credit Billing Act?

The Fair Credit Billing Act, also known as the FCBA, is a federal law related to banking in California. This law protects consumers from unfair billing and credit practices. The FCBA gives consumers the right to dispute fraudulent or incorrect charges and have them corrected or removed from their accounts. It also requires creditors to investigate and respond to consumer complaints within a set time frame. The FCBA applies to creditors who issue credit cards, including banks and retailers. It also covers credit unions and other types of loan services. These parties must investigate and resolve consumer complaints within thirty days. The law also requires creditors to provide a written explanation of the resolution or the reasons for the delay. The FCBA also allows consumers to withhold payments on disputed items while the investigation is ongoing. The law also requires creditors to correctly post payments to a consumer’s accounts and to limit the amount of overdraft fees that may be charged. In addition, the law requires creditors to provide periodic statements that accurately reflect the consumer’s account balances. The Fair Credit Billing Act gives consumers the right to challenge bills they believe to be inaccurate. This law helps ensure that consumer banking rights are respected and that consumers are not unfairly charged for services.

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What is the Fair Credit Billing Act?

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