A Guide to The Fair Credit Billing Act
The main purpose of the Fair Credit Billing Act was to give the consumer legal recourse to billing errors found on their credit card statements. It was signed into law by Congress October 28,1974 with amendments made to the Truth in Lending Act. Some of types of billing errors that are covered by this law are as follows:
1) Charges for goods and services not delivered
2) Charges that are higher than what was agreed on at time of purchase
3) Charges for unsatisfactory delivered services or good
4) Duplicate charges for the same item purchased
To be sure what types of purchases are covered by your creditor, check the back of your credit card billing statement. The billing error inquiry section may be listed under “Billing Rights Summary” heading or may be in the form of a “Customer Statement of Disputed Item” section.
There is a 60 day time period you must adhere to for reporting any possible billing error, starting from the date of your first credit card statement containing the possible billing error. To be certain that it is covered by federal law, you must write a letter explaining what you feel is in error and why to the specific billing inquiry address listed on the back of the credit card statement. Be sure to send it to the correct address. Your creditor must respond back within 30 days of receiving your letter.
Telephone calls are not covered by federal law. To be sure that any issues discussed by telephone will be preserved as your rights, you must write a detailed letter confirming what was agreed upon during the telephone conversation concerning the possible billing error.
In your letter written for either of the above purposes, be sure to include the following information:
a) Your name and your account number
b) The exact dollar amount of the possible billing error
c) Give a complete description of the possible billing error and why you feel it is an error
d) Date and time of telephone conversation, to whom you spoke and a detailed explanation of what was agreed upon to resolve the billing error
While the billing error is being investigated by your creditor, you do not have to pay the amount in question or any finance charge on that amount. But should it be determined that the questionable amount is not in error, the finance charge will be retroactively re-instated.
Also listed on the backside of most credit card statements is a section with the heading “Special Rules For Credit Card Purchases”. This section explains additional protection you are entitled to if you find there is a quality issue with goods or services purchased with a credit card. You may not have to pay the remaining balance due when the purchase amount is over $50 and if the purchase is made in your home state or within 100 miles of your mailing address. This is only after you have tried “in good faith” to work with the merchant to solve the problem.
Reference:
http://www.bankrate.com/brm/news/debt/debtcreditguide/credit-rights1.asp