What is a Fair Credit Billing Act?
The Fair Credit Billing Act is a federal law that protects consumers in the state of Washington from unfair billing practices. This law allows for customers to dispute inaccuracies on their credit card billing statements and seek a remedy from the credit card company. According to this law, if a customer notices errors on a billing statement, they can dispute the charges and request documents to verify the charges. The credit card company then has thirty days to respond to the customer’s dispute and either correct the stated amount or provide sufficient documentation to back up the charge. Additionally, this law protects customers from being held liable for unauthorized purchases. When a credit card is used without consent, the customer may be held responsible for up to $50 in charges. However, if the customer or the credit card company notifies the credit card issuer of the unauthorized use of the card within two days of their discovery, then the customer is exempt from these charges. The Fair Credit Billing Act also protects consumers from unfair practices such as late fees, over-limit fees, and interest rate increases. Credit card companies are required to notify customers of changes in billing terms at least 45 days prior to the effective date of the change. This allows customers to have ample time to review the changes and take appropriate action. Overall, the Fair Credit Billing Act is a set of regulations that protects consumers from unfair billing practices and unauthorized purchases. This law gives customers the power to dispute and verify charges, and helps ensure that credit card companies fairly treat their consumers.
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