What is a Fair Credit Billing Act?

The Fair Credit Billing Act is a federal law which protects consumer rights in regards to credit card billing and is enforced in the state of California. This law provides consumer protection against unfair billing practices, holds creditors responsible for errors, and requires creditors to investigate consumer disputes. The Fair Credit Billing Act guarantees consumers the following rights when it comes to credit card billing: 1. Consumers have the right to dispute charges on their credit card bills. Errors on a credit card bill can be due to unauthorized charges, incorrect charges, and incorrectly stated charges. Consumers must notify the creditor immediately if an error is disputed. 2. Creditors are required to investigate the dispute and make corrections to the bill if necessary. 3. Consumers are only required to pay the correct charges on their credit card bills. 4. Creditors are prohibited from charging late payment fees if they fail to resolve a dispute correctly within two billing cycles. The Fair Credit Billing Act helps protect consumers from inaccurate or unfair billing practices and helps ensure fair and accurate credit card billing in California. It is important for consumers to understand their rights under this law and understand the dispute process in order to dispute any incorrect charges on their credit card bills.

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What is a Fair Credit Billing Act?

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