The Fair Credit Billing Act

: Reese Baker & Associates

  Filed under: Credit

The Fair Credit Billing Act (FCBA) was added to the Truth in Lending Act to provide rights for customers that believe they have been charged in error by a credit card company.

By checking your credit card billing statements, you can keep on top of any extra charges or errors in billing. Mistakes happen, and if you catch and report them, you won’t be making additional payments as well as interest on those items.

Covered by the FCBA are:

  • Unauthorized charges
  • Charges listing the wrong date or amount
  • Chares for goods or services you didn’t accept or weren’t delivered as agreed
  • Mathematical billing errors
  • Failure to post payments and other credits, such as returns
  • Failure to send bills to your current address

To Dispute a Charge

You must send a written notice to the billing department listed on your statement within 60 days of the statement. Include your name, address, and account number and spell out what you believe the error is. You may want to send this certified mail so you can prove the recipient received it.

The creditor has 30 days to acknowledge your complaint and no more than 90 days to resolve it. You can withhold payment on the item in question, and the creditor can not take any action against you.

Written Notice

The creditor must send you a written account of the correction and adjustments that will be made to your account if you are correct. If you are wrong, you will also receive a written notice telling you how much you owe and why.

If you have a large amount of unsecured debt and are unable to make the minimum payments, contact a Houston bankruptcy attorney to find out how you can have your qualifying debt eliminated.