What is the Fair Credit Billing Act?

The Fair Credit Billing Act is a federal law that was passed by Congress in 1975. It applies to all consumer loans, including mortgages, car loans, and credit cards. The FCBA applies to anyone living in Delaware or any other U.S. state. The purpose of the Fair Credit Billing Act is to ensure that any consumer receiving a loan that has been negatively impacted by a billing mistake, such as an incorrect charge, will have the right to dispute the charge with their creditor. The FCBA allows the consumer to dispute the charge within sixty days of the statement date. Under the FCBA, creditors are required to investigate mistakes made by their employees. If the creditor was at fault, the consumer is entitled to a refund of the full amount of the charge, plus any related interest and fees. The creditor is also required to contact the consumer and explain why the charge was made and how it can be corrected. The FCBA also protects consumers who are victims of credit card fraud. Consumers are only responsible for up to $50 of the fraudulent charges, which is then refunded by the creditor. Overall, the Fair Credit Billing Act provides protections to Delaware consumers who receive incorrect billing statements. The law ensures that creditors must investigate and correct any mistakes, while also protecting consumers from fraudulent charges.

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