Understanding the Fair Credit Billing Act (FCBA): Common Scams, Legal Process, and Consumer Rights

What Is the Fair Credit Billing Act (FCBA)?

Enacted in 1974, the Fair Credit Billing Act (FCBA) provides essential protections for consumers against unfair billing practices and fraud involving credit card accounts. It establishes clear procedures for disputing errors, limits consumer liability for unauthorized charges and other billing errors, and ensures fair resolution processes for billing disputes. ​

Common Examples of Scams and Errors Implicating the FCBA

Consumers frequently encounter billing errors and scams that fall under the protection of the FCBA, including:

  • Unauthorized charges: Charges made without your consent or knowledge, such as fraudulent transactions following a credit card scam.
  • Billing for goods or services not received: Charges for items you didn’t accept or that weren’t delivered as promised.
  • Mistaken or duplicate charges: Errors like being billed twice for the same service or incorrect amounts.

Recognizing and Responding to Billing Errors

The FCBA empowers consumers to dispute billing errors within a strict 60-day window from receiving the erroneous statement. The process includes:

  • Written dispute: You must send a written notice to the creditor detailing the error, including your account information and a description of the issue.
  • Creditor’s acknowledgment: The creditor is required to acknowledge receipt within 30 days.
  • Investigation period: The creditor has up to 90 days to investigate and resolve the dispute, during which they cannot attempt to collect the disputed amount.
  • Outcome notification: After investigation, the creditor must notify you of the findings. If they uphold the charge, they must provide documentation; if they find an error, they must correct it.

Failure to follow these timelines or procedures gives consumers additional protections and can prevent creditors from collecting disputed amounts or reporting delinquencies.

How FCBA Lawsuits Work & Timelines

When creditors violate FCBA procedures, consumers can pursue legal action to recover damages. The typical litigation process involves:

  • Filing a dispute within 60 days after the billing error’s first report.
  • The creditor’s obligation to respond within 30 days and investigate within 90 days.
  • If the creditor fails to meet these timelines, they are barred from collecting the disputed amount.

Consumers may sue for violations, including failure to acknowledge disputes, incorrect billing, or improper reporting of delinquency. Courts may award damages if violations are proven.

Damages Consumers May Recover Under the FCBA

Consumers can seek various damages if their rights under the FCBA are violated, including:

  • Actual damages: Compensation for financial harm, such as excess charges, incorrect payments, or reimbursement of lost funds.
  • Statutory damages: Fixed monetary amounts allowed by law, typically ranging from $100 to $1,000, depending on the violation and whether misconduct was willful.
  • Punitive damages: In some cases, courts may award punitive damages for egregious misconduct.

Understanding your rights under the FCBA can help you defend against improper charges and seek compensation for violations.

Protect Your Credit Rights Today

If you believe you’ve been a victim of an FCBA violation—such as unauthorized charges, billing errors, or deceptive practices—consult an experienced consumer rights attorney. Legal action can help recover damages and prevent further abuses.

Contact Nahoum Law today for a free evaluation of your FCBA claim. Safeguard your finances and enforce your rights under federal law.