What is the Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a federal law designed to protect consumers when using a credit card. It was passed in 1974 and amended in 1976. It applies to most types of consumer credit, including credit cards, gas cards, department store accounts, and open-end loans like lines of credit or home equity loans. The FCBA protects consumers by regulating how creditors or lenders must handle errors, billing mistakes, and unauthorized charges. If a consumer notices an error or unauthorized charge on their statement, they must inform the creditor in writing within sixty days. The creditor is required to investigate the issue and respond to the consumer within ninety days of receiving the written complaint. If the creditor finds that the consumer is correct, they must correct the billing statement, remove any unauthorized charges, and provide a refund for any payments already made. They must also remove any finance charges and fees associated with the billing error. Furthermore, the creditor must send the consumer a statement showing the correction. The FCBA was created to give consumers peace of mind when spending on credit. It ensures that creditors and lenders will take responsibility for any errors they make. This helps ensure safety and security for consumers in Nebraska and throughout the United States.

Related FAQs

What is the Community Reinvestment Modernization Act?
What is the Payment Card Industry Data Security Standard?
What is required for a loan to be considered “secured”?
What is the Right to Financial Privacy Act?
What are the U.S. banking laws?
What is the Debt Collection Improvement Act?
What legal issues do banks face?
What is FDIC insurance?
What is the Check Clearing for the 21st Century Act?
What is the International Banking Act?

What is the Fair Credit Billing Act?

Related FAQs

Related Blog Posts