Credit Cards

Fair Credit Billing Act

The Fair Credit Billing Act is a federal law enacted to protect consumers from unfair billing practices, such as unauthorized charges, charges for unaccepted or undelivered goods and services and other disputed charges. Among its most important consumer protections: Your maximum liability under federal law for unauthorized use of your credit card is $50. If you report the loss before your credit cards are used, the act says the card issuer cannot hold you responsible for any unauthorized charges. The law applies to revolving charge accounts and open-end credit accounts, such as credit cards. To dispute a charge, send the creditor your name, address, account number and a description of the billing error to the address given for “billing inquiries.” The creditor must receive the letter within 60 days of sending the flawed bill and must acknowledge your complaint in writing within 30 days after receiving it. The dispute must be solved within two billing cycles, but no more than 90 days.