What primary issue does the Fair Credit Billing Act address?

What primary issue does the Fair Credit Billing Act address?

• A. Consumer rights regarding price fixing
• B. Unfair billing practices and errors
• C. Consumer protection from radiation
• D. Competition between businesses

Answer: (B)

The Fair Credit Billing Act primarily addresses unfair billing practices and errors in consumer credit accounts. This legislation was enacted to protect consumers from billing discrepancies and fraudulent activities. It establishes guidelines for correcting billing errors, ensuring consumers cannot be held responsible for charges they did not authorize or for goods and services that were not received as described. Under this law, consumers have the right to dispute charges on their credit card statements, compelling credit card companies to investigate those disputes. This provides a safety net for consumers and promotes transparency and fairness in billing practices. By highlighting unfair practices and errors, the Act aims to foster a consumer-friendly credit environment, enhancing accountability for creditors.

The Fair Credit Billing Act primarily addresses unfair billing practices and errors in consumer credit accounts. This legislation was enacted to protect consumers from billing discrepancies and fraudulent activities. It establishes guidelines for correcting billing errors, ensuring consumers cannot be held responsible for charges they did not authorize or for goods and services that were not received as described.

Under this law, consumers have the right to dispute charges on their credit card statements, compelling credit card companies to investigate those disputes. This provides a safety net for consumers and promotes transparency and fairness in billing practices. By highlighting unfair practices and errors, the Act aims to foster a consumer-friendly credit environment, enhancing accountability for creditors.