Understanding the Fair Credit Billing Act: Protecting Consumers from Unfair Billing Practices
Posted October 24, 2025
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In the realm of consumer protection, the Fair Credit Billing Act (FCBA) stands out as a pivotal piece of legislation, shielding consumers from unfair and inaccurate billing practices. This act ensures that if a consumer spots an error in their credit card statement, they have the right and the means to dispute it. But what exactly does the FCBA entail, and why is it vital for consumers?
Key Provisions of the Fair Credit Billing Act
1. Right to Dispute Billing Errors
One of the primary features of the FCBA is granting consumers the ability to challenge billing mistakes on their credit card accounts. Such errors may include unauthorized charges, charges for goods or services not delivered as agreed, math errors, and charges that the consumer wants more information about or needs clarification on.
2. Written Notice
To initiate a dispute under the FCBA, a consumer must send a written notice to the credit card company within 60 days after the first bill containing the error was mailed. It's crucial to send this letter to the address specified for billing inquiries, not the payment address.
3. Credit Card Company’s Response
Upon receiving a dispute notice, the credit card company is obliged to acknowledge it within 30 days unless the issue has already been resolved. Moreover, the company must resolve the dispute within two billing cycles or within 90 days, whichever is shorter.