CHARGE THE FCBA – Consumer Rights for Disputed Credit Card Charges Under the Fair Credit Billing Act

Understanding Your Rights Under the Fair Credit Billing Act (FCBA)

Have you ever reviewed your credit card statement and noticed a charge that just didn’t seem right? Whether it’s a charge for goods you didn’t receive, an unauthorized transaction, or a mathematical error, mistakes happen. Fortunately, the Fair Credit Billing Act (FCBA) exists to protect consumers from unfair billing practices. But like many consumer protection laws, the FCBA comes with strict deadlines and specific steps that you must follow to preserve your rights.

What Is the Fair Credit Billing Act?

The FCBA, passed in 1974, provides consumers with the ability to dispute billing errors on open-end credit accounts, such as credit cards or revolving credit lines. This federal law allows you to challenge mistakes like unauthorized charges, incorrect amounts, or charges for goods not delivered.

CONSUMERS MUST SUBMIT A WRITTEN DISPUTE WITHIN 60 DAYS!

However, time is critical under the FCBA. Consumers must act quickly—within 60 days of receiving the statement with the error. If you fail to meet this deadline, you could lose your right to challenge the mistake.

What Qualifies as a Billing Error?

According to the FCBA, billing errors can include:

• Unauthorized Charges

  • Example: You find a charge for $500 from an online retailer, but you never made that purchase. This could be due to fraud or identity theft. You can dispute this charge under the FCBA.

• Incorrect Amount Charged

  • Example: You purchase a $50 item, but your credit card statement shows a charge of $100. The amount billed does not match the actual transaction.

• Goods or Services Not Delivered

  • Example: You ordered a laptop online, but it never arrived. However, your credit card statement shows that the charge has gone through. You can challenge this charge because you never received the product.

• Payment Not Applied Properly

  • Example: You paid $1,000 towards your credit card bill, but your statement only reflects a $500 credit. This payment error can be disputed under the FCBA.

• Mathematical Errors

  • Example: Your credit card company miscalculates the interest or fees due on your statement, resulting in a higher charge than expected. You can dispute this miscalculation as a billing error.

• Failure to Send Statement to Correct Address

  • Example: You updated your address with your credit card company, but they continue to send bills to your old address. As a result, you miss payments and incur late fees. This would qualify as a billing error if the creditor failed to update your address within 21 days of notification

This list is not exhaustive, but it covers most common billing errors. If your situation seems unusual, it’s worth consulting with an attorney to confirm whether your issue qualifies as a billing error under the FCBA  .

Always Dispute Billing Errors In Writing Via Certified Mail

To dispute an error, you must send a written dispute letter to the creditor within the 60-day window. The letter should include:

• Your name and account number

• A clear description of the error

• The amount of the error

• A brief explanation of why you believe the error exists

It’s essential to send this letter to the address designated by your creditor for billing disputes (usually found on your statement). Be sure to send it via certified mail with a return receipt requested, so you have proof of your timely submission .

Why a Phone Call Won’t Suffice

Calling your creditor might seem like a quick fix, but under the FCBA, only written disputes are valid. Even if you speak with a customer service representative who promises to resolve the issue, that won’t protect your legal rights. Always submit a formal written letter to preserve your rights under the law .

What Happens After Filing a Dispute?

Once your creditor receives the dispute, they have 30 days to acknowledge it and then 90 days (or two billing cycles) to investigate the error. During this period, they cannot try to collect the disputed amount, report it as unpaid to credit bureaus, or charge interest or late fees on it. If the error is confirmed, they must correct it and remove any associated charges or fees  .

What if Your Dispute Is Denied?

If the creditor denies your claim without a proper investigation, or fails to follow the FCBA’s dispute procedures, you have the right to sue under 15 U.S.C. § 1640. This section provides for the recovery of:

• Actual damages

• Statutory damages (twice the finance charge, up to $5,000)

• Attorney’s fees and costs  

This means if you are successful in your case, the court can order the creditor to cover your legal fees, reducing the financial burden on you.

Business Credit Cards Are Not Covered

It’s important to note that the FCBA does not apply to business credit cards. The law only covers open-end consumer credit accounts, so businesses must look to other remedies if a dispute arises on a commercial credit card  .

The Importance of Timely Action

The FCBA’s protections are powerful, but only if used correctly. Failing to act within the law’s strict deadlines can leave you without recourse. If you believe there’s an error on your credit card statement, don’t wait—send your written dispute as soon as possible to protect your rights.

CONTACT R23 LAW’S CALIFORNIA FAIR CREDIT BILLING ACT LAWYERS FOR MORE HELP!

Navigating billing disputes under the FCBA can be daunting, but you don’t have to do it alone. At R23 Law, we specialize in protecting consumers from unfair billing practices.

Contact R23 Law’s California Consumer Protection and Fair Credit Billings Act Lawyers for a free consultation to discuss your case today. The deadlines are strict, but we are here to help you every step of the way.