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Fair Credit Billing Act

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What Is The Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) protects consumers’ rights to dispute credit card issuers’ charges.  For it to be taken up in the court of law, the said charges must be over $50. Anything $50 or over is eligible for dispute.

Deep Definition

The Fair Credit Billing Act (FCBA) is a US-based federal law enacted in 1974 that limits consumers’ liability and protects them from unfair billing practices in several ways.

The fair credit billing act is binding in the constitution; the law explicitly spells out how a consumer can get refunded after being billed wrongly by their bank. The transactions may be unauthorized. The Fair Credit Billing Act (FCBA) lays out consumers’ rights to dispute the correct date or amount or whether calculation errors have occurred. If a good or service was not delivered, that charge could be disputed.

The fair credit billing act has helped protect customers’ rights; many times, some people have been charged wrongly or twice for the same purchase. They were never able to get refunded even after going to the bank for necessary corrections. Still, it wasn’t refunded as the bank refused to hold itself accountable.

If you report the loss before your credit cards are used, the act says the card issuer cannot hold you responsible for any unauthorized charges. The law applies to revolving charge accounts and open-end credit accounts, such as credit cards. To dispute a charge, send the creditor your name, address, account number, and a description of the billing error to the address given for “billing inquiries.” The creditor must receive the letter within 60 days of sending the flawed bill and acknowledge your complaint in writing within 30 days after receiving it. The dispute must be solved within two billing cycles, but no more than 90 days.

Fair Credit Billing Act Example

Any individual who intends to purchase certain items and suspects unfair pricing can exercise the customer rights provisions of the fair credit billing act and file a complaint accordingly for a downward review of the pricing of the said item.

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