What is a Fair Credit Billing Act?
The Fair Credit Billing Act (FCBA) is a federal law that provides consumers with protection in Wisconsin when using credit cards. This law requires creditors to correct billing errors, limit consumer’s liability for unauthorized use, and provide certain disclosures. The FCBA applies to all credit cards and open-end lines of credit. Examples of open-end credit include credit cards, revolving charge accounts, and home equity lines of credit. This law does not apply to installment loans such as a personal or student loan. The FCBA requires creditors to resolve any billing errors, including unauthorized charges, incorrect amounts, failure to credit payments or other misapplied payments. If a billing error is found, the consumer must alert the creditor in writing within 60 days of the statement with the error. The creditor is then responsible for resolving the issue. The FCBA also limits the consumer’s liability for any unauthorized use of their credit card. This law states a consumer cannot be liable for more than $50 of unauthorized use, and in some cases, no liability is allocated. Finally, the FCBA also requires creditors to provide certain disclosures to the consumer. This includes the acknowledgement of the dispute, an assurance that the consumer can make payments without penalty, a statement of the investigation results, and a description of any item in dispute. Overall, the Fair Credit Billing Act is an important law in Wisconsin that provides consumers with important protections when using credit cards. It allows for billing errors to be disputed, helps limit liability for unauthorized use, and provides the consumer with important disclosures.
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