The Fair Credit Billing Act (FCBA) is a legislation designed to safeguard individuals who utilise credit cards. It stipulates that if an unauthorized or incorrect charge appears on your credit card statement, you have a 60-day window to notify the credit card company and request rectification. Additionally, the law states that if someone uses your credit card without your consent, you are only liable for a maximum of $50 in charges. The Federal Trade Commission (FTC) ensures that companies adhere to this law. If you require assistance in disputing a charge on your credit card statement, you can find further information on the FTC’s website.
The Fair Credit Billing Act (FCBA) was enacted in 1974 to safeguard consumers who utilise credit cards. This legislation mandates credit card companies to adhere to specific billing practices and grants consumers the right to challenge charges on their credit card statements. According to the FCBA, credit card companies are obligated to: allow consumers 60 days to dispute charges exceeding $50, promptly investigate and respond to disputes, rectify any errors on the consumer’s account, and limit consumers’ liability for unauthorized charges to $50. Instances of disputes that can be raised under the FCBA encompass charges for undelivered or misrepresented goods or services, unauthorized charges, and incorrect amounts. For instance, if a consumer receives a credit card statement displaying a charge for an item they never received, they can dispute the charge under the FCBA. The credit card company is then obliged to investigate the dispute and rectify any errors on the consumer’s account.
The Fair Credit Billing Act (FCBA) is a federal law that provides consumer protections for billing errors on credit card accounts.
The FCBA covers various billing errors, including unauthorized charges, charges for goods or services not received, charges for incorrect amounts, and charges for goods or services that were not properly delivered.
To dispute a billing error, you must send a written notice to the credit card issuer within 60 days of receiving the bill that contains the error. The notice should include your name, account number, a description of the error, and the amount in dispute.
Once the credit card issuer receives your dispute, they are required to acknowledge your complaint within 30 days and investigate the error within 90 days. During this time, they cannot report the disputed amount as delinquent or take any collection actions.
No, the credit card issuer cannot charge interest or fees on the disputed amount while it is being investigated. However, you are still responsible for paying any undisputed portion of the bill.
Yes, you have the right to withhold payment on the disputed amount and any related finance charges during the investigation. However, you must still pay the remaining balance on your credit card bill.
No, the credit card issuer cannot take legal action against you for withholding payment on the disputed amount. However, they can report the account as delinquent if you fail to pay the undisputed portion of the bill.
If the credit card issuer determines that the billing error is valid, they must correct the error and remove any finance charges or fees related to the error. They are also required to notify you in writing of the correction.
Yes, if the credit card issuer fails to comply with the FCBA, you may be able to sue them for damages, including any actual damages you suffered, statutory damages, and attorney’s fees.
Yes, you generally have one year from the date of the credit card issuer’s alleged violation of the FCBA to file a lawsuit. However, it is advisable to consult with an attorney to understand the specific time limits that may apply in your case.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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