What is a Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a federal law that was established in 1975. It is designed to protect consumers from unfair billing practices when it comes to credit card transactions. In Maryland, the FCBA applies to all credit card companies that operate in the state. The FCBA prohibits credit card companies from charging more than the stated cardholder agreement or billing for services that were not provided. It also requires credit card companies to promptly investigate any claims of billing errors and provide a written explanation of the dispute. It also requires credit card companies to provide a reasonable opportunity for cardholders to dispute and resolve billing errors. The FCBA also requires credit card companies to inform cardholders of their rights to dispute any errors in their credit bills and provides a timeframe for the cardholder to submit a dispute in writing. Additionally, it provides that if a dispute results in a credit or refund, that credit or refund must be applied to the cardholder’s account within seven days. Overall, the FCBA is designed to protect consumers from unfair billing practices in Maryland. It sets out the rights of credit card users and ensures that the credit card companies provide a reasonable process for resolving billing errors. This act provides vital consumer protection and is an important part of Maryland credit card law.

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What is a Fair Credit Billing Act?

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