What is the Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a law established to protect consumers when they have billing disputes with their creditors. It applies to most types of consumer credit accounts, such as credit cards and store charge accounts. It sets out guidelines for how creditors must handle billing errors and establishes procedures for how consumers can dispute and resolve any issues they have with their accounts. The FCBA provides consumers with the right to dispute charges on their billing statements that they believe to be incorrect. If a consumer finds an error, they can submit a written statement of the dispute to their creditor. The creditor must then investigate the claim and either correct the error or provide an explanation why the charge is valid. If the claim is found to have merit, the creditor must correct any errors within two billing cycles and may not report any negative information about the dispute. In South Carolina, as in all US states, the FCBA provides consumers with important protections when dealing with their creditors. It is the responsibility of the creditor to adhere to the guidelines set forth by the FCBA and make sure their customers are treated fairly in the event of a billing dispute. Thanks to this law, consumers can be sure that if they find any errors on their statements, they will be given the opportunity to resolve them in a timely and fair manner.

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What is the Fair Credit Billing Act?

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