What is the 'Fair Credit Billing Act - FCBA'

A federal law designed to protect consumers from unfair credit billing practices. The Fair Credit Billing Act (FCBA) provides guidelines for both consumers and creditors including procedures to manage disputes regarding billing statements. In addition, any interest accrued on the billing error has to be dropped if your claim is confirmed.

BREAKING DOWN 'Fair Credit Billing Act - FCBA'

One of FCBA's provisions states that consumers with a dispute must notify the creditor in writing within 60 days of a billing statement and the creditor must acknowledge receipt of the letter within 30 days. Examples of billing errors include charging the wrong account, calcuation errors and charges for goods that haven't been received.

RELATED TERMS
  1. Cycle Billing

    The practice of billing different customers based on a scheduled ...
  2. Back Charge

    A billing made to collect an expense incurred in a previous billing ...
  3. Descriptive Billing

    A type of credit card billing that includes the date, merchant's ...
  4. Billing Statement

    A periodic report that credit card companies issue to credit ...
  5. Bill Announcement

    An announcement published by the U.S. Treasury regarding the ...
  6. Recurring Billing

    When a merchant automatically charges a cardholder for specified ...
Related Articles
  1. Personal Finance

    5 Steps To Disputing A Credit Card Charge

    Federal and state laws offer protection to consumers when credit card charges are in question.
  2. Personal Finance

    The History Of Consumer Credit Rights

    The Fair Credit Billing Act of 1974 gave consumers the power to dispute credit card charges.
  3. Personal Finance

    Procrastinator's Guide To Bill Payment

    Avoid punishing late fees and keep your credit score intact with these 10 tips.
  4. Personal Finance

    Automating Your Bill Payments

    Automation can be a painless (and free) way to remove the stress of bill scheduling from your life - if you do it right.
  5. Personal Finance

    How To Dispute a Credit Card Charge

    Follow these steps if you've been ripped off or spot an error on your bill.
  6. Personal Finance

    8 Steps To An Organized Financial Life

    Disorganization makes planning difficult, and that can cost you big time.
  7. Managing Wealth

    Should You Pay Your Bills On Autopilot?

    Now that you can sign up to have your bills paid automatically online, it it a smart way to make your life more efficient? A look at the pros and cons.
  8. Insurance

    20 Ways To Save On Medical Bills

    Handy tips to cut the cost of hospital bills, co-pays, prescription drugs and more.
  9. Investing

    Bill of Exchange

    A bill of exchange is a document used in international trade to pay for goods or services. It is signed by the person promising to pay, and given to the person entitled to receive the money. ...
  10. Investing

    Credit Report Alert!

    Chances are your credit report has mistakes – which could cost you hundreds a year in mortgage, car loan or credit card interest. Here's how to correct it.
RELATED FAQS
  1. What are some examples of credit report errors that I can dispute?

    Discover how to get access to your consumer credit report, identify incorrect information, and communicate with creditors ... Read Answer >>
  2. How do I fix an error on my credit report?

    Take control over your credit report by disputing false claims, accounts and information to the three major credit reporting ... Read Answer >>
  3. Who uses bills of exchange?

    Find out who uses bills of exchange, why they are important in international trade and what happens when a bill is traded ... Read Answer >>
  4. How long does it take for items to show up on my credit report?

    Find out how long missed payments, collections and requests for credit take to show up on a credit report and how often most ... Read Answer >>
  5. What is the difference between a bill of exchange and a bill of lading?

    Understand what a bill of exchange and a bill of lading are and the different purposes they each serve as documents used ... Read Answer >>
Hot Definitions
  1. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  2. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  3. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  4. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  5. The Bernie Madoff Story

    Bernie Madoff ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.
  6. Pyramid Scheme

    An illegal investment scam based on a hierarchical setup. New recruits make up the base of the pyramid and provide the funding, ...
Trading Center