The Fair Credit Billing Act

The Fair Credit Billing Act (FCBA) is a law that protects consumers from incorrect or unfair credit card bills. It requires creditors to provide an accurate and timely billing statement to credit card users and specify the rights of consumers when billing mistakes occur. It also requires debt collectors to abide by certain rules when attempting to collect a debt from a consumer. In addition, the FCBA offers consumers the ability to dispute charges on their credit card bills by contacting the creditor directly or filing a complaint with the Federal Trade Commission. The law also limits the amount of time a creditor can report a late payment to the credit bureaus—no more than 30 days after the due date—and requires a creditor to give at least 45 days notice before increasing the interest rate on existing balances. Finally, the FCBA also prohibits credit card issuers from imposing punitive late fees, charging interest on interest, or charging fees for use other than purchases.