Fair Credit Billing Claims

A. The Fair Credit Billing Act, FCBA

When a credit company makes errors it refuses to correct, claims can be filed. 

Congress enacted the FCBA in order to regulate billing disputes involving "open end consumer credit plans." See 15  U.S.C. § 1666; Gray v. Am. Express Co., 743 F.2d 10, 13 (D.C.Cir.1984) ("The Fair Credit Billing Act seeks to prescribe an orderly procedure for identifying and resolving disputes between a cardholder and a card issuer as to the amount due at any given time."). If a credit-card holder sends a written notice disputing a charge within sixty days of receiving a bill, the FCBA requires a credit-card issuer to acknowledge the dispute within thirty days, investigate the matter, and provide a written explanation of its decision within ninety days. 15 U.S.C. § 1666(a); Am. Express Co. v. Koerner, 452 U.S.  233, 234-37, 101 S.Ct. 2281, 68 L.Ed.2d 803 (1981).

"The creditor must send its explanation before making any attempt to collect the disputed amount." Koerner, 452 U.S.  at 237, 101 S.Ct. 2281; see also 15 U.S.C. § 1666(a)(3)(B). Further, "the card issuer must notify the cardholder on subsequent statements of account that he need not pay the amount in dispute until the card issuer has complied with § 1666." Gray, 743 F.2d at 14 (citing 15 U.S.C. § 1666(c)(2)). Additionally, "a creditor or his agent may not directly or indirectly threaten to report to any person adversely on the obligor's credit rating ... and such amount may not be reported as delinquent to any third party until the creditor has met [these] requirements." 15 U.S.C. § 1666a(a). If a creditor fails to comply with any of these provisions, it is subject to civil liability under 15 U.S.C. § 1640 and forfeiture of the disputed amount under § 1666(e).

Free Consultation on Fair Credit Billing Claims (973)598-1980