Disclosures

• For existing accounts with a balance of more than $1, creditors must provide the consumer a periodic statement containing the responsibilities of both parties, according to the FCBA. Statements must comply with existing regulations and contain an address for the consumer to send billing inquiries and disputes.
  
  Creditors must establish a grace period during which the account balance, including any finance charges, can be paid without the incurring more finance charges. Disclosure are also required for interest rates, due dates, payment addresses and creditor phone numbers.
  
  

Billing Errors

• In the event of a billing error, the consumer must submit, and the creditor must receive, a written notice disputing the charges within 60 days of the date printed on the statement. Consumers should examine all transactions on the account upon receiving the statement and notify the creditor immediately of any errors. Some creditors will take a claim over the phone, but they may also require a written statement disputing the charges.
  
  

Confirmation and Investigation

• The creditor must provide written confirmation within 30 days of receiving the dispute, then has up to 90 days to investigate and resolve the claim, according to the FCBA. The confirmation must also advise the account holder that the consumer isn't required to make payments for the disputed amount during this period.
  
  The act allows creditors to continue collecting amounts not in dispute. They can also reduce the available credit limit by the disputed amount during the claim investigation. After investigating the dispute, the creditor must correct the billing error or send the consumer a notice explaining why the charges are believed to be legitimate.
  
  

Other Creditor Requirements

• Creditors may not report or threaten to report the disputed amount to a credit rating agency while the claim is investigated. If it is reported, the creditor must give the consumer the contact information of the third party and notify the consumer of subsequent corrections.
  
  With credit card transactions, creditors may not prohibit merchants from offering a discount to the consumer in exchange for payment by cash, check or other non-card means. A credit card issuer can't deduct money from a consumer's deposit account to pay a credit card debt unless this was authorized by the consumer.