Rights Under the Fair Credit Billing Act (FCBA) Explained
You Don’t Have to Pay That Wrong Charge: Your Rights Under the Fair Credit Billing Act (FCBA) Explained
Think That Charge Is Wrong? - Don’t Pay Until You Read This
You open your credit card statement expecting the usual total. Instead, you see a charge you don’t recognize.
Maybe it’s from a place you’ve never visited. Maybe it’s duplicate. Maybe you returned the item — but the refund never appeared.
You call customer service. You wait. You’re told to “check next month.” Meanwhile, interest builds, and you’re left wondering whether not paying it will hurt your credit.
Here’s what most consumers don’t realize:
You are not relying on a company’s goodwill. You are protected by federal law. The Fair Credit Billing Act (FCBA) gives you the right to dispute certain billing errors, limits your liability for unauthorized charges, and requires creditors to follow strict rules when investigating disputes.
Used properly, it can stop improper charges and protect your credit.
Below, we explain how it works — and what you should do next.
What Is the Fair Credit Billing Act (FCBA)?
When credit card billing mistakes became a recurring problem for consumers, Congress stepped in. In 1974, lawmakers amended the Truth in Lending Act and created what is now known as the Fair Credit Billing Act (FCBA), a federal law designed to bring order and accountability to credit card disputes.
The FCBA applies to open-end credit accounts, meaning accounts you can use repeatedly and repay overtime. If you receive a monthly statement and have the option to carry a balance, the law likely applies to you.
This includes:
·Credit cards
·Store charge cards
·Revolving charge accounts
·Home equity lines of credit (HELOCs)
The FCBA does not apply to:
·Debit card transactions (covered by the Electronic Fund Transfer Act)
·Mortgages
·Auto loans
·Fixed installment loans
The law defines what qualifies as a billing error, sets strict dispute procedures, limits liability for unauthorized use, and provides legal remedies if creditors fail to comply.
The FCBA is codified under 15 U.S.C. § 1666 and Regulation Z (12 C.F.R. § 1026.13) — the federal provisions that require creditors to properly investigate and resolve billing disputes.
What Counts as a Billing Error?
The FCBA clearly defines what types of issues qualify for protection. You may have a valid dispute if your statement includes:
·Unauthorized charges (fraud or stolen card use)
·Duplicate charges
·Charges with incorrect dates or amounts
·Mathematical or calculation errors
·Charges for goods or services not delivered
·Charges for items returned but not credited
·Missing statement credits or refunds
·Bills sent to the wrong address (after proper notice)
·Charges requiring clarification or proof of purchase
It’s important to understand that a disagreement about the quality of a product is generally not considered a billing error under the FCBA.
The $50 Fraud Protection Rule
If your credit card is used without authorization, your liability is capped at $50, provided you report the issue within the required timeframe.
In practice, most major credit card issuers offer zero-liability fraud protection. However, the $50 cap is the minimum protection guaranteed by federal law.
The Most Important Rule: 60 Days
Timing is everything.
You must send a written dispute letter within 60 days of the date the statement containing the error was mailed to you.
Calling customer service does not trigger your legal protections under the FCBA. To activate your rights, your dispute must:
Be in writing
Include your name and account number
Identify the disputed amount
Clearly explain why you believe it is incorrect
Be sent to the creditor’s billing inquiries address (not the payment address)
It is strongly recommended to send the letter by certified mail and keep copies for your records.
You Filed the Dispute — Now the Law Steps In
Once your creditor receives your written dispute, the rules change.
Within 30 days, they must acknowledge it. Then within 90 days, they must investigate and either fix the error or explain in writing why they believe the charge is valid.
During that time:
·You may withhold payment on the disputed amount
·No interest can be added
·It cannot be reported as late
·Collection efforts must stop
You must still pay the undisputed portion of your bill.
If the creditor insists the charge is valid, you have 10 days to respond before collection may begin.
And importantly, filing a dispute does not hurt your credit score. The account may show as “in dispute,” but it cannot legally be reported as delinquent while under investigation.
If it is, that may violate federal law.
Common Mistakes That Can Cost You Protection
Even a strong billing dispute can fall apart because of small procedural mistakes. Waiting longer than 60 days to act, relying only on a phone call instead of sending a written notice, mailing the dispute to the payment address instead of the billing inquiries address, or refusing to pay the undisputed portion of your bill can all weaken your legal protection. Under the FCBA, the process matters just as much as the error itself and following the correct steps is what keeps your rights fully intact.
What If the Creditor Violates the FCBA?
Some creditors fail to follow the law. Common violations include:
·Ignoring written disputes
·Continuing to charge interest during investigation
·Reporting disputed amounts as late
·Failing to conduct a reasonable investigation
·Attempting collection before the dispute is resolved
If this happens, the FCBA allows you to pursue legal remedies.
You may be entitled to:
·Actual damages
·Statutory damages
·Twice the amount of any finance charge (between $100 and $1,000)
·Attorney’s fees and court costs
In certain cases, a creditor that violates the FCBA may lose the right to collect the disputed amount entirely
FCBA vs. FCRA: Don’t Confuse the Two
These laws protect consumers in different ways.
The FCBA applies to billing errors on your credit card statement.
The Fair Credit Reporting Act (FCRA) applies to errors appearing on your credit report with Experian, Equifax, or TransUnion.
If the issue is on your monthly bill — it’s likely an FCBA matter.
If the issue is on your credit report — it falls under the FCRA.
When Should You Speak to an FCBA Attorney?
You should contact us if:
·Your written dispute was ignored
·Interest continued to accrue on a disputed amount
·The creditor reported the charge as late during investigation
·You were pressured to pay before the dispute was resolved
·You feel overwhelmed navigating the process
You don’t have to fight a major credit card company alone.
The Fair Credit Billing Act exists for a reason — to level the playing field between consumers and creditors. If your rights have been violated, Tariq Law PC is ready to stand with you.
How Tariq Law PC Can Help
When banks and credit card companies ignore the rules, we step in.
At Tariq Law PC, we hold financial institutions accountable when they fail to follow federal consumer protection laws.
If your rights under the FCBA have been violated, we can:
·Examine your dispute to uncover legal violations
·Identify improper billing or reporting practices
·Stop unlawful collection efforts
·Challenge inaccurate or damaging credit reporting
·File federal lawsuits when necessary
·Seek statutory damages and attorney’s fees on your behalf
Many of our consumer protection cases are handled on a contingency basis — meaning you may not pay unless we successfully recover compensation for you.
Believe the Bank Crossed the Line?
Financial institutions have legal obligations, not suggestions. When they ignore those obligations, consumers have the right to take action.
If your bank failed to correct a wrongful charge or dismissed your valid dispute, Tariq Law PC is prepared to step in and protect your rights.
Contact Tariq Law PC today or complete our secure online form to request your consultation.
You don’t have to fight the system alone. We’re here to stand with you and enforce the law.
