How does the Fair Credit Billing Act protect credit card consumers?

The Fair Credit Billing Act (FCBA) is a federal law that protects credit card consumers in South Carolina. The law gives credit card holders the right to dispute any inaccuracies on their credit card bills. This includes errors in the amount charged for goods or services, unauthorized charges, and charges not made by the cardholder. Under the FCBA, cardholders can file a written dispute with the creditor within 60 days after the charge appears on their statement. Once the dispute is received, the creditor must investigate the claim within two billing periods. If the creditor find that there is an error, the cardholder must be notified in writing within 90 days and the error must be corrected, including any late fees or finance charges. In the event that the creditor finds no error, the cardholder can continue to dispute the charge. The FCBA also requires that the creditor must provide written notice of any increase in the annual percentage rate (APR) of the credit card. This notice must be provided at least 15 days prior to any increase. Finally, the FCBA prohibits creditors from threatening cardholders with criminal prosecution or garnishment of wages for a failed payment. Any attempts by creditors to threaten or harass cardholders is a violation of the law. In summary, the Fair Credit Billing Act provides cardholders with the right to dispute charges on their credit card bills. It also protects cardholders from creditors increasing the APR without notification, and from creditors harassing or threatening them.

Related FAQs

What rights do I have under the Equal Credit Opportunity Act?
Is it possible to obtain a refund if I have been the victim of fraud?
What is the Fair Debt Collection Practices Act?
How do I initiate a chargeback?
What are the federal laws governing credit cards?
What happens if I am found guilty of fraud or misuse in a credit card dispute?
Can I negotiate with credit card companies?
What can I do if I am being harassed by debt collectors?
What rights do I have under the Electronic Fund Transfer Act?
What can I do if I am charged late fees for my credit card payments?

How does the Fair Credit Billing Act protect credit card consumers?

Related FAQs

Related Blog Posts