If you’ve ever found an incorrect charge on your credit card bill, the Fair Credit Billing Act (FCBA) is what gives you the right to dispute it—and avoid paying while the issue is being resolved.
The FCBA is a federal law that protects consumers from unfair billing practices on credit cards and other open-end credit accounts. It gives you the legal right to dispute errors like duplicate charges, unauthorized transactions, or items you never received. Even better, it temporarily pauses your responsibility to pay the disputed amount while your credit card company investigates.
In this guide, we’ll break down how the Fair Credit Billing Act works, when it applies, and how to use it to protect your credit and your wallet.
What Is the Fair Credit Billing Act?
The Fair Credit Billing Act (FCBA) is a federal law that protects consumers from unfair billing practices on credit card accounts. It gives you the legal right to dispute billing errors and temporarily pauses your obligation to pay the disputed amount while the issue is under review.
The FCBA was passed in 1974 as an amendment to the Truth in Lending Act. Its purpose is to give consumers a way to challenge incorrect charges and to require credit card issuers to investigate disputes in a timely and fair manner.
The law applies to open-end credit accounts, which include:
- Traditional credit cards
- Store-branded credit cards
- Any other revolving credit accounts that allow you to carry a balance month to month
The FCBA does not apply to installment loans, such as:
- Auto loans
- Student loans
- Personal loans with fixed payments
- Mortgages
These types of accounts follow different dispute procedures and are not covered by FCBA protections.
What types of billing errors are covered?
The FCBA is designed to help you dispute specific types of errors that show up on your credit card statement. Common examples include:
- Unauthorized charges – Transactions you didn’t make or approve
- Charges for items not received – You were billed, but the product or service never arrived
- Incorrect transaction amounts – You were charged more than the agreed amount
- Duplicate charges – The same transaction shows up more than once
- Charges for returned items – You sent something back, but weren’t refunded
- Math errors – Totals or interest calculations on your statement are wrong
- Charges for services not delivered as agreed – A contractor or business didn’t follow through
If you see any of these on your billing statement, the FCBA gives you the right to dispute them and request an investigation.
How to Dispute a Credit Card Billing Error Under the FCBA
You have rights under the FCBA, but you need to follow the proper steps to make sure your dispute is covered.
Step 1: Review Your Statement Promptly
The clock starts ticking as soon as your billing statement is mailed. You have 60 days from that date to report any errors in writing.
To stay on top of it, make a habit of reviewing your statements every month—even if you usually pay them off without looking closely. The sooner you catch something, the easier it is to fix.
Step 2: Send a Written Dispute Letter
To trigger FCBA protections, you must submit your dispute in writing. Calling customer service or sending an email doesn’t count under the law.
Your letter should include:
- Your name and address
- Your account number
- A clear explanation of the error
- The dollar amount in question
- A note mentioning any documents you’re including
Send your letter to the address listed for billing inquiries, not the payment address. To protect yourself, send it by certified mail with return receipt so you have proof it was delivered.
Step 3: Keep Copies and Documentation
Always keep a copy of your letter and anything else you send. If you have documents that help support your case—like receipts, screenshots, tracking numbers, or return confirmations—it’s smart to include those too.
You don’t need supporting documents to open a dispute, but they can help strengthen your position and speed up the process.
What Happens After You File a Dispute
Once your credit card company receives your dispute letter, they’re required to follow a specific timeline and process under the FCBA.
Credit Card Company’s Obligations
- Acknowledgment within 30 days – They must send a written acknowledgment that they received your dispute.
- Resolution within two billing cycles – They have up to two full billing cycles (but no more than 90 days) to complete the investigation and send you a decision.
- No negative credit reporting – While the dispute is under review, they can’t treat the amount as past due or report it as late to the credit bureaus.
What You Still Have to Pay
Even if part of your bill is under dispute, you still need to pay the rest of it. If you don’t pay the undisputed charges, you could be hit with late fees, interest, or even negative marks on your credit report. Keep the account current while the issue is being reviewed.
What if the dispute is denied?
If your credit card company decides that the charge is valid, they have to notify you in writing and explain their reasoning. You have the right to request the documents they used to make that decision.
If you still believe the charge is incorrect, you can submit a new dispute or escalate the issue. And if you disagree with the outcome, you can ask the credit card company to add a note to your credit report. You must make this request within 10 days of receiving the denial.
Special Protections for Lost or Stolen Cards
If someone uses your credit card without your permission, the FCBA limits your liability for those fraudulent charges—even if the card is physically stolen or hacked while in your possession.
- $0 liability if you report the card lost or stolen before any charges are made
- $50 maximum liability if fraudulent charges happen before you report it
Unlike billing disputes, you don’t need to send a letter. A phone call to your issuer is enough, and it should be done as soon as you notice something suspicious.
When to Consider a Chargeback Instead
A chargeback is different from an FCBA dispute. It’s a request for your credit card issuer to reverse a charge—usually because the merchant didn’t hold up their end of the deal.
Chargebacks are useful when:
- The item was poor quality or not as described
- The merchant refused to issue a refund
- You tried to resolve it directly and got nowhere
To be eligible, the purchase usually must be unpaid, and it may need to have occurred in your state or within 100 miles of your billing address. Each credit card issuer has its own chargeback policy, so check their terms before filing.
What to Do If the Credit Card Company Won’t Cooperate
If your card issuer ignores your dispute or refuses to investigate it properly:
- Double-check the address – Make sure your letter went to the billing inquiries address listed on your statement.
- File a complaint – Contact the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC).
- Consider legal help – If you’re hitting a wall, a consumer attorney can advise you on whether it’s worth taking legal action.
Related Consumer Protection Laws
The FCBA isn’t the only law that may apply to your situation. Here are two others that could also help:
- Fair Credit Reporting Act (FCRA) – Gives you the right to dispute inaccurate or outdated information on your credit report. For example, if a charge you disputed is reported as late, the FCRA allows you to request a correction.
- Fair Debt Collection Practices Act (FDCPA) – Protects you from harassment, deception, or other unfair tactics by debt collectors. If a collector is pressuring you over a charge you’ve already disputed, this law may help limit what they can do.
Final Thoughts
The Fair Credit Billing Act is one of the most important tools consumers have to fight back against credit card billing errors. It puts the burden on the credit card issuer to investigate mistakes and protects you from paying for charges that don’t belong.
But the clock starts ticking the moment your billing statement is sent. Acting quickly—and in writing—is the key to getting the protection the law provides. Keep good records, follow the steps, and don’t be afraid to escalate if your card issuer doesn’t take your dispute seriously.
