Fair Credit Billing Act

The Fair Credit Billing Act is a federal law that was designed to protect consumers from unfair billing practices. It was established in 1975 and was designed to protect both the consumer and the creditor when potential disputes arise. It includes guidelines to help both parties, and if a billing error is detected and confirmed, it protects the consumer from having to pay any interest charges that may have been accrued due to the error. If a consumer feels that there has been an error, he must contact the creditor within 60 days of receiving the bill, by written letter. The creditor must respond by acknowledging the receipt of this letter within 30 days of receipt. Disputes may include a bill in the wrong amount, a bill sent to the wrong person, or a bill for goods or services that were never rendered or received.