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  • Writer's pictureSubhan Tariq, Esq

The Fair Credit Billing Act (FCBA)


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The Fair Credit Billing Act (FCBA) is a federal law that regulates how credit card companies handle billing disputes with consumers. It was enacted in 1974 as an amendment to the Truth in Lending Act and is designed to protect consumers from unfair and inaccurate billing practices. In this blog, we will discuss the salient features of the FCBA and how it benefits consumers.

The FCBA provides consumers with several key protections when it comes to billing disputes. For example, if a consumer believes that there is an error on their credit card bill, they have the right to dispute it with the credit card company. The credit card company must then investigate the dispute and respond to the consumer within a reasonable amount of time. If the company determines that there was indeed an error, it must correct it and refund any overpayments made by the consumer.

Another important protection provided by the FCBA is the right to withhold payment on a disputed charge. If a consumer disputes a charge on their credit card bill, they have the right to withhold payment on that charge until the dispute is resolved. This can help to prevent consumers from being held responsible for charges that they do not believe are valid.

The FCBA also requires credit card companies to provide consumers with certain information about their accounts. For example, companies must provide consumers with a statement of their account balance and a list of all transactions made during the billing cycle. This can help consumers to keep track of their spending and detect any errors or fraudulent activity.

In addition to these protections, the FCBA also prohibits certain billing practices that can be harmful to consumers. For example, credit card companies are not allowed to charge late fees or interest on disputed charges while the dispute is being investigated. This can help to prevent consumers from being unfairly penalized for disputes that are not their fault.

The FCBA also requires credit card companies to provide consumers with certain disclosures about their billing practices. For example, companies must provide consumers with information about how interest rates are calculated and how minimum payments are determined. This can help consumers to understand how their credit card bills work and make informed decisions about their credit card use.

Finally, the FCBA provides consumers with the right to sue credit card companies that violate its provisions. If a consumer believes that a credit card company has violated the FCBA, they can file a lawsuit and seek damages for any harm caused by the violation. This can help to ensure that credit card companies take the FCBA seriously and comply with its provisions.

In conclusion, the Fair Credit Billing Act provides consumers with important protections when it comes to credit card billing disputes. It requires credit card companies to investigate and correct errors on consumers' bills, prohibits certain billing practices that can harm consumers, and provides consumers with the right to sue companies that violate its provisions. These protections help to ensure that consumers are treated fairly and can make informed decisions about their credit card use. For more info, reach out to us at info@tariqlaw.com or submit a case review request.

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