Fair Credit Billing Act: How to Dispute Unauthorized Credit Card Charges

You check your credit card statement and see a charge you don't recognize. Or a subscription you cancelled is still billing you. Or a merchant charged you twice. Or a service you paid for was never delivered. These are all situations the Fair Credit Billing Act (FCBA) was specifically designed to protect you against.

The FCBA, passed in 1974 and enforced by the Federal Trade Commission, limits your liability and gives you the right to dispute billing errors formally. Used correctly, it means the charge must be removed while your bank investigates — and your liability is capped at $50 for unauthorized charges (and often $0 under Visa/Mastercard zero-liability policies).

What the Fair Credit Billing Act Covers

The FCBA applies to credit cards and charge cards (not debit cards — for debit, use the Electronic Fund Transfer Act). It covers these billing error types:

• Unauthorized charges — someone used your card without permission
• Wrong amounts — charged more than the agreed price
• Charges for goods/services not received — paid but not delivered
• Duplicate charges — same charge appears twice
• Charges for returned goods — refund not processed
• Accounting errors — payments not credited, finance charges calculated incorrectly
• Charges not sent to your correct address (if you provided your address)

Step 1: Try to Resolve With the Merchant First

Before filing a formal dispute, contact the merchant directly. Many billing issues are genuine errors the merchant will fix immediately. Document everything:

• Note the date, time, and name of the representative you spoke with
• Follow up via email so you have a written record
• Give them 5–7 business days to resolve it

If they ignore you, deny the refund, or can't be reached — proceed to a formal FCBA dispute with your card issuer.

Step 2: File a Written FCBA Dispute With Your Card Issuer

This is the legally protected step. Phone calls alone do NOT trigger FCBA protections — you need to dispute in writing. Your written dispute must:

• Be sent to the billing inquiries address on your statement (not the payment address)
• Include your name, account number, the charge amount, and the date it appeared
• Explain why it's a billing error
• Include copies (not originals) of supporting documents
• Be sent via certified mail, return receipt requested
• Arrive within 60 days of the statement date

What Happens After You File?

Once you've submitted a proper FCBA dispute, the law requires your card issuer to:

1. Acknowledge your dispute within 30 days of receiving it
2. Resolve the dispute within two billing cycles (but no more than 90 days)
3. Temporarily credit your account for the disputed amount while investigating (for most issuers)
4. Cannot report the disputed amount as delinquent while the dispute is open
5. If they rule against you, must provide written explanation and documentation

Chargeback vs. FCBA Dispute: What's the Difference?

Many people confuse these. Here's the key difference:

• FCBA dispute: Federal legal process for billing errors. Triggers specific legal protections. Requires written notice within 60 days of statement date.
• Chargeback: Card network process (Visa/Mastercard/Amex) for disputing a transaction. Can cover additional scenarios beyond FCBA (like "item not as described"). Can often be initiated by phone or online.

For maximum protection, file both simultaneously — a formal FCBA dispute letter to your card issuer AND initiate a chargeback through your bank's standard dispute process. The FCBA letter provides federal legal backup if the chargeback fails.

If Your Bank Denies Your Dispute

If your card issuer investigates and denies your FCBA dispute, you have further options:

1. Request the Documentation

Ask for the specific evidence the merchant provided that led to the denial. You have the right to see it. Often, it's a boilerplate response — and you can challenge its accuracy.

2. Re-dispute With Additional Evidence

A denial isn't final. Gather stronger evidence (screenshots, email correspondence, tracking showing non-delivery, etc.) and re-dispute.

3. File a CFPB Complaint

If you believe your card issuer mishandled your FCBA dispute, file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint. FCBA violations are within the CFPB's enforcement authority.

4. State Attorney General

File with your state AG's consumer protection division. Many state consumer protection laws provide additional remedies beyond federal FCBA protections.

Special Situations: Subscription Billing and "Free Trials"

One of the most common FCBA dispute scenarios is subscription billing after a "free trial" you cancelled — or thought you cancelled. Key points:

• Under the FTC's negative option rule (2024), companies must make cancellation as easy as signup
• If you cancelled and they kept billing, those are unauthorized charges disputable under FCBA
• If a free trial converted to paid without clear disclosure, that may be an FCBA billing error
• Save cancellation confirmation emails — they're critical evidence in your dispute

The Bottom Line

The Fair Credit Billing Act is one of the strongest consumer protection laws on the books. The 60-day rule is the critical detail most people miss — once you see a suspicious charge, the clock is ticking. A formal written dispute triggers federal legal protections that phone calls simply don't. Know your rights, act fast, and document everything.