The Fair Credit Billing Act
The Fair Credit Billing Act helps consumers dispute credit card billing errors. The FCBA was passed in 1970 as an amendment to the Truth in Lending Act. This Act is specifically in place so that billing mistakes can be removed fairly.
This Act does not regulate lender agreements or other contracts that allow installment payments. The FCBA created a standard for disputing credit card charge errors only.
What are billing errors according to the FCBA?
- Unauthorized Charges
- Charges with the wrong date or dollar amount
- Charges for items not received or accepted
- Math Errors
- Non-posted payments or returns
- Failure to send bills to the correct address when the change of address was submitted
- Charges which require a verbal or written explanation for proof of purchase
The procedure set in place by FCBA states that the credit card holder must write to the creditor's billing department within 60 days of the billing error. This letter must be certified and include: their name, address, account number and description of billing error. Copies of materials that represent you are correct should be attached. If the credit card holder follows the dispute standard the creditor must respond within 90 days.
- Understanding Credit:
