Legal Definitions - Fair Credit Billing Act (FCBA)

The Fair Credit Billing Act (FCBA) is a law that was passed in 1974 to protect consumers who use credit cards. The law requires credit card companies to follow certain billing practices and gives consumers the right to dispute charges on their credit card statements.

Under the FCBA, credit card companies must:

• Give consumers 60 days to dispute charges over $50
• Investigate and respond to disputes within a reasonable amount of time
• Correct any errors on the consumer's account
• Limit the liability of consumers for unauthorized charges to $50

Examples of disputes that can be made under the FCBA include:

• Charges for goods or services that were not received
• Charges for goods or services that were not as described
• Charges for goods or services that were not authorized
• Charges for the wrong amount

For example, if a consumer receives a credit card statement that shows a charge for a product they never received, they can dispute the charge under the FCBA. The credit card company must investigate the dispute and correct any errors on the consumer's account.