The U.S. Fair Credit Billing Act provides a formal billing-error process for covered open-end consumer credit accounts under TILA and Regulation Z.
The Fair Credit Billing Act (FCBA) is a U.S. federal law that amended the Truth in Lending Act to create billing-error rights and procedures for covered open-end consumer credit accounts. Regulation Z section 1026.13 implements the core notice, investigation, and resolution process.
FCBA commonly applies to credit cards and revolving charge accounts. It is not the primary error-resolution law for ordinary debit-card transactions, and it does not generally govern closed-end installment loans in the same way.
Regulation Z identifies categories that include:
The exact definition matters. General dissatisfaction, a request for a receipt only, or a dispute about a closed-end loan is not automatically a Regulation Z billing error.
Identify the first periodic statement containing the alleged error. Record the transmission date, transaction date, amount, merchant, and statement due date.
Send a written notice to the address designated for billing inquiries, not merely the payment address. Include the consumer’s name and account information and, to the extent possible, the type, date, amount, and reason for the asserted error.
The periodic statement may explain whether an electronic notice is treated as written. A telephone call can be useful operationally but may not preserve the formal billing-error rights.
The creditor generally must receive the qualifying notice within 60 days after it transmitted the first periodic statement reflecting the error. Proof of sending and receipt can be important.
During a compliant investigation, the consumer can generally withhold the disputed amount and related finance charges while remaining responsible for undisputed required payments. The disputed amount can still affect the available credit limit.
If the creditor finds an error, it corrects the account and applicable charges. If it concludes no error occurred, it provides a written explanation and, on request, relevant documentary evidence as required by the rule.
A card statement transmitted on April 5 shows a $420 purchase that the cardholder says was never made. The statement lists a separate billing-inquiries address.
The cardholder sends a written notice identifying the account, transaction, amount, and reason for the dispute. The creditor receives it on May 10, within 60 days after the statement was transmitted.
Unless the creditor fully resolves the issue sooner, it generally must acknowledge the notice within 30 days and complete the applicable resolution within two complete billing cycles, no later than 90 days after receipt. The cardholder should continue paying undisputed minimum amounts and preserve the statement, notice, delivery proof, and responses.
This example assumes the transaction and account are covered. Actual rights depend on current law and facts.
| Process | Main focus | Key distinction |
|---|---|---|
| FCBA billing-error notice | Errors on covered open-end credit statements | Statutory and regulatory written-notice process |
| Unauthorized-use liability | Consumer liability for unauthorized card use | Addressed through separate TILA and Regulation Z provisions, though an unauthorized transaction can also be a billing error |
| Chargeback | Card-network or issuer process involving merchant transactions | Contractual process with its own reason codes and deadlines |
| Claims and defenses | Withholding payment against a card issuer for certain merchant disputes | Separate conditions under Regulation Z section 1026.12(c) |
| Regulation E error process | Electronic fund transfers, commonly debit-card and deposit-account transactions | Different coverage, notice, and investigation rules |
During the investigation, Regulation Z restricts collection and adverse treatment of the disputed amount while allowing collection of undisputed portions. The creditor may request information needed for a reasonable investigation and can temporarily credit the account without ending its duty to complete the required process.
These protections do not permit a consumer to stop all payments on the account. The current statement, designated address, and precise disputed amount matter.
Deadlines and remedies are fact-specific. This page provides general education, not legal advice or instructions for a particular dispute.