Fair Credit Billing Act

The Fair Credit Billing Act (FCBA) is a United States federal law enacted as an amendment to the Truth in Lending Act (codified at 15 U.S.C. ยง 1601 et seq.). Its purpose is to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open end" credit accounts, such as credit card or charge card accounts.

The law gives you rights when an error occurs on your credit card statement. You must notify the credit card company of the mistake within 60 days after it mailed the bill to you. The company must then correct the mistake, or at least acknowledge receipt of your letter within 30 days, and must correct the error within 90 days or explain why it believes the credit card statement is correct.

What types of disputes are covered?

The FCBA settlement procedures apply only to disputes about "billing errors." For example:

  • unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
  • charges that list the wrong date or amount;
  • charges for goods and services you didn't accept or weren't delivered as agreed;
  • math errors;
  • failure to post payments and other credits, such as returns;
  • failure to send bills to your current address - provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and
  • charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.

To take advantage of the law's consumer protections, you must:

  • write to the creditor at the address given for "billing inquiries," not the address for sending your payments, and include your name, address, account number and a description of the billing error.
  • send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you.


Sources
http://en.wikipedia.org/wiki/Fair_Credit_Billing_Act
http://www.nolo.com/definition.cfm/Term/862635E6-26F0-42D1-84BC0AADFF0F50E7/alpha/F/
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre16.shtm