What is a Fair Credit Billing Act?

The Fair Credit Billing Act is a federal law that applies to credit cards in Tennessee and throughout the United States. This law was passed in 1975 and provides consumers with protection against unfair billing practices such as unauthorized charges, incorrect charges, and failures to post payments in a timely manner. The Fair Credit Billing Act requires credit card companies to correct billing errors quickly and limits their attempts to collect payment on erroneous charges. This law also allows consumers to dispute charges and request refunds for those that are found to be incorrect or unauthorized. It also prevents companies from assessing late fees unless the consumer has been provided with a clear written statement of any late fees and interest due. The Fair Credit Billing Act also provides protection for consumers against credit card companies that attempt to overcharge for services or items and require consumers to purchase insurance and other add-ons, that are unnecessary or not wanted. If any of these issues arise, the consumer can dispute the charges and receive a refund, if any, that is due. Overall, the Fair Credit Billing Act is a law that protects consumers from unfair billing practices and provides a mechanism for refunds and dispute resolution. It is important for consumers to know and understand their rights under this law in order to take action if they are ever subjected to unfair billing practices.

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What is a Fair Credit Billing Act?

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