"Your Rights Under The Fair Credit Billing Act”

The Fair Credit Billing Act (FCBA)

This federal law provides dispute settlement procedures for consumers who have billing issues related to "open end" credit accounts, such as credit cards, and revolving charge accounts. It does not cover installment contracts - loans or extensions of credit you repay on a fixed schedule. The FCBA settlement procedures apply only to disputes about "billing errors,” such as those listed below:

• Unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
• Charges that list the wrong date or amount;
• Charges for goods and services you didn't accept or weren't delivered as agreed;
• Math errors;
• Failure to post payments and other credits, such as returns;
• Failure to send bills to your current address - provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and
• Charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.

Consumers are not responsible for paying the portion of their bill that is in dispute, but must continue to pay all items not in dispute, including finance charges. The creditor may not take any legal or other action to collect the disputed amount and related charges (including finance charges) during the investigation. While your account cannot be closed or restricted, the disputed amount may be applied against your credit limit.

The creditor may not threaten your credit rating or report you as delinquent while your bill is in dispute. However, the creditor may report that you are challenging your bill. In addition, the Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants who exercise their rights, in good faith, under the FCBA. Simply put, you cannot be denied credit just because you've disputed a bill.

To exercise your rights under FCBA:

• Write to the creditor at the address given for "billing inquiries," not the address for sending your payments, and include your name, address, account number and a description of the billing error.
• Send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you.

Send your letter by certified mail, return receipt requested, so you have proof of what the creditor received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter. The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.