Legal Definitions - FCBA

FCBA

The FCBA stands for Fair Credit and Billing Act of 1974. This law created rules for how credit card companies and other lenders must handle billing and disputes with their customers.

Let's say you have a credit card and you notice a charge on your bill that you don't recognize. Under the FCBA, you have the right to dispute that charge with your credit card company. They must investigate the charge and provide you with a response within a certain timeframe.

Another example is if you make a payment on your credit card, but the company doesn't apply it correctly. The FCBA requires them to fix the mistake and credit your account appropriately.

The FCBA is a law that protects consumers from unfair billing practices by credit card companies and other lenders. The examples show how the law gives consumers the right to dispute charges and have mistakes corrected. This helps ensure that customers are only charged for what they actually owe and that their payments are applied correctly.