Title 15 — Commerce and TradeRelease 119-73not60
§1666 Correction of Billing Errors
Title 15 › Chapter 41— CONSUMER CREDIT PROTECTION › Subchapter I— CONSUMER CREDIT COST DISCLOSURE › Part D— Credit Billing › § 1666
Summary
Creditors must handle billing complaints if a customer mails a written dispute to the address on the bill within 60 days of getting the statement. The notice must identify the account, say the customer thinks there is a billing error and give the amount, and explain why. The creditor must acknowledge the complaint in writing within 30 days unless it fixes the problem in that time. Within two complete billing cycles (but no more than 90 days) the creditor must either correct the account, credit any mistaken finance charges, and tell the customer what changed, or finish an investigation and send a written explanation and, if the customer asks, copies of documents showing the debt. If the complaint is that goods were not delivered, the creditor cannot say the charge is correct unless it proves the goods were actually sent. A “billing error” covers things like a charge that was not made or is the wrong amount; requests for more information or documents; goods not accepted or not delivered as agreed; payments or credits not shown correctly; math or accounting mistakes; failing to send the statement to the customer’s last disclosed address (unless that address was given less than 20 days before the billing cycle ended); and other errors in Bureau rules. Sending regular statements after a dispute is OK if the account is not closed or restricted and the creditor tells the customer payment of the disputed amount is not required while it investigates. If a creditor breaks these rules, it loses the right to collect the disputed amount and related finance charges, but that forfeiture cannot exceed $50.
Full Legal Text
Title 15, §1666
Commerce and Trade — Source: USLM XML via OLRC
(a)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)sets forth or otherwise enables the creditor to identify the name and account number (if any) of the obligor,
(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,
(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.
(b)For the purpose of this section, a “billing error” consists of any of the following:
(1)A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount reflected on such statement.
(2)A reflection on a statement of an extension of credit for which the obligor requests additional clarification including documentary evidence thereof.
(3)A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction.
(4)The creditor’s failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor.
(5)A computation error or similar error of an accounting nature of the creditor on a statement.
(6)Failure to transmit the statement required under section 1637(b) of this title to the last address of the obligor which has been disclosed to the creditor, unless that address was furnished less than twenty days before the end of the billing cycle for which the statement is required.
(7)Any other error described in regulations of the Bureau.
(c)For the purposes of this section, “action to collect the amount, or any part thereof, indicated by an obligor under paragraph (2)” does not include the sending of statements of account, which may include finance charges on amounts in dispute, to the obligor following written notice from the obligor as specified under subsection (a), if—
(1)the obligor’s account is not restricted or closed because of the failure of the obligor to pay the amount indicated under paragraph (2) of subsection (a), and
(2)the creditor indicates the payment of such amount is not required pending the creditor’s compliance with this section.
(d)Pursuant to regulations of the Bureau, a creditor operating an open end consumer credit plan may not, prior to the sending of the written explanation or clarification required under paragraph (B)(ii), restrict or close an account with respect to which the obligor has indicated pursuant to subsection (a) that he believes such account to contain a billing error solely because of the obligor’s failure to pay the amount indicated to be in error. Nothing in this subsection shall be deemed to prohibit a creditor from applying against the credit limit on the obligor’s account the amount indicated to be in error.
(e)Any creditor who fails to comply with the requirements of this section or section 1666a of this title forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph (2) of subsection (a) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed $50.
Legislative History
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.
Reference
Citations & Metadata
Citation
15 U.S.C. § 1666
Title 15 — Commerce and Trade
Last Updated
Apr 3, 2026
Release point: 119-73not60