Fair Credit Billing Act (FCBA)
Definition - What does Fair Credit Billing Act (FCBA) mean?
The Fair Billing Credit Act is an amendment to the Truth in Lending Act; it was enacted as a U.S. federal law in 1974. The law was enacted to safeguard consumers against unfair billing practices and acts as a measure through which consumers can resolve billing disputes concerning credit accounts.
Justipedia explains Fair Credit Billing Act (FCBA)
The Fair Billing Credit Act has set guidelines that consumers and creditors must follow when a billing error arises. Miscalculations, overcharging, and wrongfully charging an account are some of the billing errors that are covered under the Fair Billing Credit Act. Under the act, a consumer must notify the creditor in writing of a billing error within 60 days of receiving the bill. The act also mandates that creditors inform the consumer that they have received the complaint within 30 days of receiving it, investigate the claim within 90 days of receiving the complaint, and either return the unfair amount that the consumer has been charged or send a letter to the consumer, explaining why the creditor believes that the consumer hasn't been unfairly charged.