PRIA, Government Policy, Made Personal

Summary

If you think your credit card or loan statement is wrong, you must send a written notice to the address the creditor gave within 60 days after the statement was sent. The notice must say who you are and the account, state that you believe there is a billing error and the amount, and explain why. A “billing error” includes wrong or extra charges, charges that need more proof, goods or services you didn’t accept or didn’t get, payments or credits the creditor didn’t show, math or accounting mistakes, a statement not sent to the last address you gave (unless you gave that address less than 20 days before the billing cycle ended), and other errors the Bureau lists. The creditor must acknowledge your letter within 30 days unless it fixes or investigates the issue sooner. Within two billing cycles, but no more than 90 days, and before trying to collect the disputed amount, the creditor must either correct the account (and fix any finance charges) and tell you what changed, or finish an investigation and send a written explanation. If you say goods were not delivered, the creditor can only say the charge is correct if it proves the goods were actually sent and tells you. The creditor may keep sending normal statements while it looks into your dispute, as long as it does not close or restrict your account just because you won’t pay the disputed amount and it tells you payment is not required while investigating. For open-end plans, the creditor cannot close or limit your account for nonpayment of the disputed amount before giving the written explanation, though it can count the disputed amount against your credit limit. If the creditor fails to follow these rules, it loses the right to collect the disputed amount and any finance charges on it, but the forfeited amount cannot be more than $50.

Title 15, §1666

Commerce and Trade, Source: USLM XML via OLRC

(a)Written notice by obligor to creditor; time for and contents of notice; procedure upon receipt of notice by creditor (b) Billing error (c) Action by creditor to collect amount or any part thereof regarded by obligor to be a billing error (d) Restricting or closing by creditor of account regarded by obligor to contain a billing error (e) Effect of noncompliance with requirements by creditor

If a creditor, within sixty days after having transmitted to an obligor a statement of the obligor’s account in connection with an extension of consumer credit, receives at the address disclosed under section 1637(b)(10) of this title a written notice (other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates with the disclosure required under section 1637(a)(7) of this title) from the obligor in which the obligor— (1)

(2)indicates the obligor’s belief that the statement contains a billing error and the amount of such billing error, and

(3)sets forth the reasons for the obligor’s belief (to the extent applicable) that the statement contains a billing error,

the creditor shall, unless the obligor has, after giving such written notice and before the expiration of the time limits herein specified, agreed that the statement was correct—

(A)not later than thirty days after the receipt of the notice, send a written acknowledgment thereof to the obligor, unless the action required in subparagraph (B) is taken within such thirty-day period, and

(B)not later than two complete billing cycles of the creditor (in no event later than ninety days) after the receipt of the notice and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under paragraph (2) either—

(i)make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditor’s explanation of any change in the amount indicated by the obligor under paragraph (2) and, if any such change is made and the obligor so requests, copies of documentary evidence of the obligor’s indebtedness; or

(ii)send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligor’s indebtedness. In the case of a billing error where the obligor alleges that the creditor’s billing statement reflects goods not delivered to the obligor or his designee in accordance with the agreement made at the time of the transaction, a creditor may not construe such amount to be correctly shown unless he determines that such goods were actually delivered, mailed, or otherwise sent to the obligor and provides the obligor with a statement of such determination.

After complying with the provisions of this subsection with respect to an alleged billing error, a creditor has no further responsibility under this section if the obligor continues to make substantially the same allegation with respect to such error.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub L. 111–203, § 1100A(2), which directed the substitution of “Bureau” for “Board” wherever appearing in title I of Pub. L. 90–321, was executed to this section, which is section 161 of title I of Pub. L. 90–321. section 1087 of Pub. L. 111–203, which directed the making of an identical amendment in title III of Pub. L. 93–495, which added this section to title I of Pub. L. 90–321, has not been executed.

Amendments

2010—Subsecs. (b)(7), (d). Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board”. See Codification note above. 1980—Subsec. (a). Pub. L. 96–221, § 613(g), substituted “(b)(10)” for “(b)(11)” and “(a)(7)” for “(a)(8)”. Subsec. (b)(6), (7). Pub. L. 96–221, § 620(a), added par. (6) and redesignated former par. (6) as (7). Subsec. (c). Pub. L. 96–221, § 620(b), inserted provisions respecting finance charges on amounts in dispute.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date

of 1980 AmendmentAmendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all

Regulations

, forms, and clauses required to be prescribed to be promulgated at least one year prior to such

Effective Date

, and allowing any creditor to comply with any

Amendments

, in accordance with the

Regulations

, forms, and clauses prescribed by the Board prior to such

Effective Date

, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.

Effective Date

Pub. L. 93–495, title III, § 308, Oct. 28, 1974, 88 Stat. 1517, provided that: “This title [enacting this section and sections 1666a to 1666j of this title, amending section 1601, 1602, 1610, 1631, 1632, and 1637 of this title, and enacting provision set out as a note under section 1601 of this title] takes effect upon the expiration of one year after the date of its enactment [Oct. 28, 1974].”

Short Title

Title III of Pub. L. 93–495, which is classified principally to this part, is known as the “Fair Credit Billing Act”. For complete classification of Title III to the Code, see

Short Title

of 1974 Amendment note set out under section 1601 of this title and Tables.

§1666 Correction of Billing Errors

Summary

Title 15, §1666

Notes & Related Subsidiaries

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Regulations

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