What is a Fair Credit Billing Act?
The Fair Credit Billing Act (FCBA) is a federal law that requires credit card issuers and other creditors to follow specific guidelines and follow certain procedures when dealing with billing errors. This law is designed to protect consumers from unfair and deceptive practices by creditors. In Oregon, the FCBA has been adopted by the Oregon Consumer Loan Act, which provides Oregon consumers with additional protections. Under the FCBA, Oregon consumers may dispute billing errors on their credit card statement by writing to the creditor. The creditor must then investigate the dispute within two billing cycles and either correct the error or provide an explanation of why the charge was made. The FCBA also gives Oregon consumers the right to withhold payment on a credit card item they believe may be incorrect. The creditor must then investigate within two billing cycles to determine if the charge is accurate. If the creditor determines that the charge is accurate, the consumer must then pay for it, if it is not, the creditor must notify the consumer of the outcome and take appropriate action. The FCBA also requires that certain procedures be followed if the consumer disputes a charge on a credit card statement and the creditor refuses to resolve the dispute. Overall, the FCBA is an important law in Oregon that protects consumers from unfair and deceptive practices by creditors. It ensures that consumers are given the right to dispute billing errors and withhold payment on a credit card item that they believe may be incorrect. It also requires creditors to investigate and resolve disputes, and provide an explanation of why a charge was made if it cannot be corrected.
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