What is a Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a federal law in the United States that protects consumers against unfair billing practices by their credit card companies. This law applies to credit cards issued in Illinois and all states in the US. The FCBA ensures that consumers receive accurate and timely statements, protects them from unauthorized charges, and gives them recourse if they are overcharged or not delivered the goods or services they were expecting. In addition, the FCBA provides consumers with a process to dispute inaccurate information on their credit card statements and requires that credit card companies resolve the dispute in a timely manner. Once a dispute is filed, the credit card company must investigate and respond within two billing cycles. If the dispute is resolved in the consumer’s favor, the credit card company will credit the consumer’s account for the disputed amount. The consumer is also protected from any late fees or additional interest charges during the dispute investigation period. The FCBA also prohibits credit card companies from pursuing collection activities against the consumer while a dispute is being investigated. It is important for consumers to know their rights under the Fair Credit Billing Act and take action when a billing issue arises. Doing so can help them protect their financial interests and avoid any unnecessary fees or other negative consequences.

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What is a Fair Credit Billing Act?

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