Definition
The Fair Credit Billing Act (FCBA) is an amendment to the Truth in Lending Act which specifies remedies that account holders may take to resove billing disputes as well as to ban unfair billing practices.
Analysis
The purpose of the FCBA was to hold creditors accountable for their billing practices. Additionally, they are required to report only reliable information to credit bureaus if they choose to report.
Other important provisions of the FCBA include:
- limits on bank’s ability to pay delinquent credit card bills from a cardholder’s bank account without their permission
- prohibits credit card companies from requiring merchants to charge the same price for a cash vs. credit transaction
- requires a 14 day notice prior to the due date on any credit account with a grace period
- credit bureau reporting must also include any disputes regarding the reported account
