Fair Credit Billing Act
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The Fair Credit Billing Act is a federal law which was enacted as an amendment to the Truth in Lending Act. The Fair Credit Billing Act ensures that consumers are protected from unfair billing practices.
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The Fair Credit Billing Act also provides a mechanism to correct billing errors in credit accounts like credit cards and charge card accounts.
This said, many of us at some time or the other have received credit card statements with errors, and we all know that it can be very frustrating to get those errors rectified. You call the credit card company who will direct you to the merchant. You call the merchant who will direct you to the credit card company. Ultimately you are forced to make the payment even if you did not make the purchase because you do not want any problems.
However, the Fair Credit Billing Act has brought about a change. Under this Act, you do not have to pay for something you did not buy. In addition, the Fair Credit Billing Act also ensures that you should be held responsible for billing errors. Under the Fair Credit Billing Act any item on your credit card statement that you do not recognize will be termed as billing error.
The Act does protect your interests but in order to get benefit from it you would have to notify your credit card company in writing by bringing the error to their notice. This has to be done within 60 days of the issue date of your credit card statement. Never send the letter by fax or email. Also do not telephone to inform them and then just sit back. Make sure you send your complaint as a letter using the US mail services.
The credit card company then has to investigate your complaint and respond to it. This can either be in the form of refund for the said amount or they have to giving a written explanation as to why billing is correct.
This is how the Fair Credit Billing Act works and you should use it to your advantage if you feel you are receiving erroneous statements from your credit card company.
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