What is the Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a law designed to protect consumers from erroneous or unfair billing practices by credit card companies. The FCBA is administered by the Federal Trade Commission (FTC). The FCBA grants consumers the right to dispute charges and resolve billing errors with the card issuer. It also establishes standards for the card issuer, such as the prompt crediting of payments, the timely delivery of statements, and the provision of accurate information about the due date for payment. The FCBA has specific requirements for how card issuers should handle billing disputes. For example, the card issuer must conduct a reasonable investigation of any dispute, and must provide the results of the investigation within two complete billing cycles, but not more than 90 days after they received notification of the problem. If the investigation reveals that an error did occur, the card issuer must correct the error and send a corrected statement. The FCBA also prohibits credit card companies from charging you late fees, interest, or other penalty fees if the billing error was the company’s fault. However, if you are responsible for the error, you may have to pay the fees. In addition, the FCBA protects you from actions, such as closing your account, denying credit, or taking any other retaliatory action for filing a dispute. Overall, the Fair Credit Billing Act is an important law that provides consumers with rights when dealing with billing errors on their credit cards. It is enforced by the Federal Trade Commission, and violations of the FCBA may result in a fine or other penalties.

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What is the Fair Credit Billing Act?

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