By: Robert J. Nahoum
The Fair Credit Billing Act (FCBA) is a federal law that protects consumers from unfair billing practices. The FCBA applies to open-end credit accounts, such as credit cards, charge cards, and home equity lines of credit.
The FCBA covers a wide range of billing errors, including:
- Charges that you didn’t make
- Charges for goods or services that you didn’t receive
- Charges that are incorrect
- Charges that are not properly explained
If you believe that your credit card statement contains a billing error, you have the right to dispute it. You must notify your creditor in writing within 60 days of the date the statement was mailed to you.
Your creditor must investigate your dispute within 30 days of receiving your notice. If the creditor finds that the error was made, it must correct your statement and credit your account for any amount that you were overcharged.
If the creditor doesn’t find that the error was made, you can request a copy of the creditor’s evidence. You can also ask for a second review of your dispute.
If you are still not satisfied with the outcome of your dispute, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
The FCBA also limits your liability for unauthorized charges on your credit card account. Your liability is limited to $50 if you report the unauthorized charge to your creditor within 60 days of the statement date on which the charge first appeared. If you report the unauthorized charge after 60 days, your liability is limited to $500.
The FCBA provides important protections for consumers from unfair billing practices. If you believe that your credit card statement contains a billing error, you should contact your creditor immediately to dispute it.
Remedies and Damages Available to Aggrieved Consumers
In addition to the protections listed above, the FCBA also provides for certain remedies and damages to consumers who have been aggrieved by unfair billing practices. These remedies include:
- The right to have the disputed charge removed from your credit report
- The right to be reimbursed for any money that you paid as a result of the billing error
- The right to be awarded actual damages, up to $1,000
- The right to be awarded statutory damages, up to $500
, If you have been a victim of unfair billing practices, contact us today to see what we can do for you.
The Law Offices of Robert J. Nahoum, P.C