By: Robert J. Nahoum
A billing error under the Fair Credit Billing Act (FCBA) occurs when a credit card statement contains mistakes such as unauthorized charges, incorrect amounts, charges for goods or services not received, or computational errors. FCBA lawsuits allow consumers to dispute these errors efficiently, and aggrieved consumers may recover financial damages and, in some cases, attorneys’ fees.
What Constitutes a Billing Error under the FCBA
The FCBA defines several types of billing errors, including:
- Charges not made or authorized by the cardholder, such as fraudulent purchases.
- Mistakes on the billing statement like incorrect charge amounts or computational errors.
- Charges for goods or services not delivered as agreed.
- Failure to reflect payments or credits properly.
These errors must be reported to the creditor in writing within 60 days of the statement date to trigger FCBA protections.
How FCBA Lawsuits Work
If a consumer is unable to resolve a dispute through the creditor’s investigation, litigation under the FCBA may be pursued. Generally, the lawsuit will focus on whether the creditor complied with the investigative procedures required by the statute and whether the alleged billing error is valid.
- The consumer must demonstrate timely notice of the dispute and provide evidence of the error.
- The creditor must show it conducted a reasonable investigation.
- Failure by the creditor to properly investigate or correct verified errors may result in liability in court.
Damages Consumers May Recover
Aggrieved consumers may recover the following under the FCBA:
- Actual damages, such as reimbursement for the incorrect charges and consequential losses arising from the error.
- Statutory damages where the creditor fails to comply with FCBA obligations even without actual monetary loss.
- Attorneys’ fees and court costs if the consumer prevails in litigation against the creditor.
These remedies reinforce the FCBA’s consumer protection focus and incentivize creditors to maintain accurate billing and dispute procedures.
If you believe you are the victim of unauthorized credit card transactions or unfair billing practices, it is important to act quickly and assert your rights under the FCBA to minimize your liability and protect your credit. The Law Offices of Robert J. Nahoum, P.C. can assist with disputes and litigation to ensure you receive the full protections and remedies afforded by law.
Contact us today at (845) 232-0202 or visit www.nahoumlaw.com to schedule a consultation.