Definitions for "Fair Credit Billing Act"
A federal law that ensures creditors follow specific procedures regarding customer billing disputes.
Federal law giving rights to consumers when an error occurs on their credit card statement. Consumers have 60 days to report the error after they are mailed the bill. Companies must then correct the mistake within 30 days, and must then correct the error within 90 days or explain why it believes the credit card statement is valid.
Credit and charge card bills are governed, in the United States, by the Fair Credit Billing Act, which is included in the Truth in Lending Act (see Truth in Lending Act). If you think your bill is wrong, write to your card issuer at the address listed on your statement. You must write no later than 60 days after receiving the first statement where the error appeared. The card issuer must acknowledge your letter within 30 days, and correct the error or explain why it thinks the statement was correct, within two billing cycles (but in no event later than 90 days) after receipt of your letter. You do not have to pay the amount in question while it is being investigated, but you must pay the rest of your bill.