Fair Credit Billing Act

The Fair Credit Billing Act provides for the prompt correction of errors on open-end credit accounts (department store credit accounts, for example) and protects consumers' credit ratings, while they are settling disputes.

Under this law, if a consumer is disputing a charge to report to creditors rather than the consumer's account delinquent. This applies to open-end credit instruments such as credit cards, revolving charge accounts and overdraft checking. Consumers who question an item are responsible for informing the creditor in writing within 60 days of receipt of the invoice. The creditor must accept within 30 days and can not do anything to the consumer's credit rating damage while the item in dispute.