What is a Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a federal law in the United States that protects consumers from unfair billing practices by creditors, such as banks, credit card companies, and other creditors. This law, which is enforced by the Federal Trade Commission (FTC), applies to all credit or charge accounts that are covered by the Truth in Lending Act, including open-end accounts like credit cards, retail charge accounts, and revolving charge accounts. Specifically, the Fair Credit Billing Act requires creditors to follow certain procedures when billing consumers for goods and services. These rules ensure that amounts for goods or services purchased with a credit or debit card are accurately calculated and billed. They also include the right to challenge and obtain a correction of billing errors. The law also allows consumers to dispute charges on their credit card statements. If an item on the statement is wrong, the consumer can challenge the charge to the creditor. The creditor is then required to investigate the dispute and either explain why the charge is correct or provide a refund. In South Carolina, the Fair Credit Billing Act is enforced by the South Carolina Department of Consumer Affairs. The department ensures that consumers have access to accurate information about their credit and debit accounts, and that they are protected from unfair and deceptive practices related to their accounts. Consumers can contact the department with questions or concerns about their credit or debit accounts.

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What is a Fair Credit Billing Act?

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