Define: Fair Credit Billing Act

The Fair Credit Billing Act (FCBA) is a federal law that protects consumers from unfair billing practices and gives them the right to dispute and correct billing errors on their credit card statements.

The FCBA covers unauthorized charges, charges for goods or services not received, charges for goods or services that were not as described, and mathematical errors on your credit card statement.

To dispute a billing error, you must send a written notice to your credit card issuer within 60 days of receiving the statement with the error. The notice should include your name, account number, the amount of the disputed charge, and the reason for the dispute.

Once you dispute a billing error, the credit card issuer must acknowledge your dispute within 30 days and investigate the error. During the investigation, the issuer cannot report the disputed amount as late or take any action to collect the disputed amount.

No, the credit card issuer cannot charge you interest or fees on the disputed amount while it is being investigated.

Yes, you have the right to withhold payment on the disputed amount and any related finance charges while it is being investigated.

If the credit card issuer determines there was no error, they must provide you with a written explanation and any evidence of the error. You have the right to request copies of any documents used in the investigation.

Yes, if the credit card issuer violates the FCBA, you may be able to sue for damages, including any actual damages you suffered and additional damages up to $1,000.

The FCBA does not apply to business credit cards or charges made outside the United States.

You can find more information about the Fair Credit Billing Act on the website of the Consumer Financial Protection Bureau or by consulting with a qualified attorney.