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 should I do if I am accused of fraudulent charges on my credit card?
What are the laws on credit card debt collection?
Are credit card companies required to follow certain procedures during dispute resolution?
What should I do if I receive a notice of collection from my credit card company?
What are the deadlines for filing a credit card dispute?
What is the Electronic Fund Transfer Act?
What is the Equal Credit Opportunity Act?
What is a liens and can I dispute it?
What does the law say about credit card disputes?
What is the statute of limitations on credit card debt in my state?

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

Related FAQs

Related Blog Posts