What is the Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a federal law that applies to credit card purchases made in the United States. It protects a consumer who has a dispute with a creditor or who believes they have been charged an incorrect amount on a credit card bill. This law also provides consumers with the right to withhold payment on those disputed charges until the issue is resolved in an effort to protect their rights as well as their credit score. The FCBA requires creditors to look into any disputes and resolve them within two billing cycles. While the consumer can continue to dispute the charge, they are also required to pay any non-disputed charges and any late fees or interest that may have accumulated. The FCBA also requires creditors to provide the consumer with documentation of the dispute when they receive an inquiry. This means that consumers have the right to get a written explanation of the dispute from their creditor in order to better comprehend the issues at hand. This law applies to all consumer-initiated disputes that involve previously-billed amount, goods or services the consumer purchased with a credit card, a claimed billing error, or a violation of the terms of the credit agreement. It does not apply to issues such as cash advances, balance transfers, or disputes over interest rate increases. In Florida, it is important to be aware of and understand this federal law in order to protect your rights and disputes any incorrect billing.

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What is the Fair Credit Billing Act?

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