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Fair Credit Billing Act
As a part of United States federal law, the Fair Credit Billing Act was passed as an effort to protect consumers from unfair billing practices as well as to provide a vehicle for addressing billing errors in credit accounts that are termed as "open end" such as credit and charge cards.
The act defines billing errors as charges not made by the consumer, charges that appear in an incorrect amount, charges for goods that were not received by the consumer, charges for goods that were not delivered as agreed, a failure on the part of the statement to reflect payments made or credits issued, errors of calculation, and charges for which the consumer seeks proof or clarification.
In order to meet the requirements of the legislation a consumer must dispute a charge in writing within sixty days of receiving the account statement. The credit issuer must then respond and initiate an investigation within 90 days.
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