Fair Credit Billing Act (FCBA)

The law concerns particular billing errors rather than every disagreement involving credit. Examples can include an unauthorised charge, an incorrectly stated amount or a charge for goods not delivered as agreed, and the classification affects which process and protections apply.

Covered open-end accounts can include credit cards and certain lines of credit, but the same process should not be assumed for every instalment loan, debit-card transaction or business account, so identify the account type and transaction before telling a customer which rights they have. Under the billing-error procedure, the consumer generally needs to send a written notice that reaches the creditor's specified address within 60 days after the first statement showing the alleged error was sent.

That timing is tied to the statement, not simply to the purchase date, and the notice should identify the account, disputed amount and reason. A creditor must generally acknowledge the notice within 30 days unless it has already resolved the matter, and resolution is generally required within two complete billing cycles after receipt, and not later than 90 days, so these are statutory-process deadlines, not a promise that a refund will appear immediately.

The creditor investigates and either corrects the error or explains why it believes the bill is correct. A consumer's allegation starts the process when the requirements are met, but it does not automatically prove the error, so keep receipts, statements and delivery information that support the dispute.

The disputed amount receives specific protections while the procedure is underway, yet the consumer still needs to meet obligations for amounts not in dispute, and withholding the entire account payment because one item is challenged can create a different problem. A charge for goods not delivered as agreed can differ from dissatisfaction with the quality of goods actually accepted, and other rights or merchant arrangements may apply to quality disputes.

Do not assume the billing-error procedure is the only route or that it covers every complaint in the same way. A card network's chargeback process and the FCBA framework are related in practice but not identical, and a merchant refund policy is another separate arrangement, so the consumer should preserve legal deadlines even while discussing a voluntary refund with the seller.

Instructions about the notice destination matter, since an address for billing inquiries can differ from an address for making payments. Sending a notice only to the merchant or putting it in an unrelated communication may not satisfy the creditor's required procedure.

Unauthorised-use issues can involve additional rules beyond the billing-error process, so the consumer should promptly contact the issuer and follow its fraud-reporting instructions, and a general FCBA explanation should not substitute for securing a compromised account. For a non-finance manager handling customer or employee questions, distinguish the consumer's right to an investigation from a guaranteed outcome.

Direct them to the issuer's process and reliable guidance, while preserving relevant records. The statutory protections are US-specific and should not be presented as a worldwide credit-card rule.