Fair Credit Billing Act - FCBA

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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. Consumer Advisory Council - CAC

    A legislative body established by Congress in 1976. The Consumer ...
  2. Financial Stability Plan (FSP)

    A plan unveiled by the Obama administration in April, 2009, that ...
  3. Credit

    1. A contractual agreement in which a borrower receives something ...
  4. Credit Card

    A card issued by a financial company giving the holder an option ...
  5. Identity Theft

    The crime of obtaining the personal or financial information ...
  6. Charge Card

    A card that charges no interest but requires the user to pay ...
Related Articles
  1. How To Dispute A Credit Card Charge
    Credit & Loans

    How To Dispute A Credit Card Charge

  2. Identity Theft: How To Avoid It
    Insurance

    Identity Theft: How To Avoid It

  3. How Much Debt Can You Handle?
    Budgeting

    How Much Debt Can You Handle?

  4. Should You Close Your Credit Card?
    Credit & Loans

    Should You Close Your Credit Card?

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center