How does the Fair Credit Billing Act protect me from fraudulent charges?
Curious about Fraudulent charges
The Fair Credit Billing Act (FCBA) is a federal law in the United States that protects consumers from unfair billing practices and provides a dispute resolution process for billing errors, including fraudulent charges. The FCBA allows consumers to dispute charges on their credit card bill and requires credit card issuers to investigate and resolve disputes within a certain timeframe.
Under the FCBA, consumers must report any billing errors, including fraudulent charges, to their credit card issuer in writing within 60 days of the first bill containing the error. The credit card issuer must acknowledge receipt of the dispute within 30 days and must resolve the dispute within 90 days. During this time, the credit card issuer cannot report the disputed amount as delinquent to credit reporting agencies, nor can they attempt to collect the disputed amount or take legal action against the consumer.
If the credit card issuer determines that the disputed charge is a billing error, they must remove the charge from the consumer's account and credit any interest or fees associated with the charge. If the charge is determined to be fraudulent, the consumer is not liable for the charge, and the credit card issuer must take steps to prevent further fraudulent charges.
Overall, the FCBA provides important protections for consumers who are victims of fraudulent charges and can help them to quickly resolve disputes and recover any financial losses.