Fair Credit Billing Act Rights

If you've noticed a billing error on your credit card statement, you may be wondering what your rights are in correcting the situation. Fortunately for consumers, the Fair Credit Billing Act (FCBA) provides specific guidelines for disputing billing errors. The FCBA also protects consumer with regards to truth in lending. Understanding your rights under the FCBA can help to protect your credit rating and ensure that billing disputes are properly resolved.

Types of Disputes

The Fair Credit Billing Act allows consumers the right to dispute certain types of billing errors. These include unauthorized charges; charges that list the wrong date or amount; charges for goods and services you didn't accept; mathematical errors; any failure to post payments or credits to your account; failure to send a current bill to your billing address; or charges for which you request an explanation or written proof of purchase. The FCBA does not give consumers the right to dispute charges based on the quality of goods or services received.

Dispute Process

To initiate a dispute under the FCBA, you must send a written request to the creditor's billing address that includes your name, address, account number and a description of the error. The creditor must be notified within the 60 days following the initial date the error appeared on your bill. The creditor is required to notify you of receipt of your complaint within 30 days, and resolve the error within two billing cycles. During this period, you have the right to withhold payment for the disputed amount only. The creditor is barred from reporting your account negatively to any of the three credit reporting bureaus until the error is resolved. The creditor is required to notify you in writing of whether the bill is correct or incorrect.

Other Billing Rights

In addition to your right to dispute billing errors, the FCBA also offers consumers certain other protections. Any creditor that offers open-ended or revolving credit is required to provide you with written notice of your rights under the FCBA any time you open a new account. Creditors must provide you with a statement for each billing period in which you owe more than $1, and they must send your bill at least 14 days before payment is due. Your creditor must credit all payments on the date they are received, and promptly credit amounts or refunds owed to your account.

Violations

If you feel that a creditor has violated your rights under the FCBA, you may file a complaint with the Federal Trade Commission. Additionally, you are entitled to sue a creditor who violates the FCBA for damages and twice the amount of the finance charges for the disputed item, up to $1,000. The court may also order the creditor to pay your attorney's fees.