Exercise your rights under the Fair Credit Billing Act to dispute unauthorized charges, billing errors, and merchant disputes. California law provides additional consumer protections.
60 Days
FCBA Dispute Deadline
$50 Max
Unauthorized Charge Liability
90 Days
Investigation Period
Credit Card Dispute Rights in California
The Fair Credit Billing Act (FCBA) is a powerful federal law that protects consumers from billing errors and unauthorized charges on credit cards. Combined with California's strong consumer protection statutes, cardholders have significant rights when disputing charges.
Key Protection: Under FCBA, you're liable for no more than $50 for unauthorized charges on your credit card - and most major issuers waive even that amount. You also have the right to withhold payment on disputed amounts during the investigation.
What You Can Dispute Under FCBA
Dispute Type
Description
Protection Level
Unauthorized Charges
Charges made without your permission, including stolen card fraud
Strong - $50 max liability
Billing Errors
Wrong amount, wrong date, duplicate charges, math errors
Strong - Full correction required
Goods Not Received
Charged for items that were never delivered
Strong - Chargeback available
Not As Described
Product/service materially different from what was advertised
Moderate - Must attempt resolution first
Merchant Credit Not Applied
Return or refund not reflected on statement
Strong - Full credit required
Your FCBA Rights
Written dispute required: Must be in writing, not phone
60-day deadline: From statement date showing error
Withhold payment: On disputed amount during investigation
No adverse credit reporting: During dispute period
Investigation required: Issuer must investigate and respond
Immediate Action Steps
Review statements: Check every charge monthly
Document everything: Save receipts, emails, screenshots
Send written dispute: Certified mail, return receipt
Keep copies: Of all correspondence
Track deadlines: 60 days from statement date
FCBA vs. Debit Cards: The Fair Credit Billing Act applies only to credit cards, not debit cards. Debit card disputes are covered by the Electronic Fund Transfer Act (EFTA), which provides weaker protections. If you have a choice, using a credit card for purchases offers better dispute rights.
Fair Credit Billing Act (FCBA) Rights
The FCBA (15 U.S.C. 1666) is your primary federal protection for credit card disputes. Understanding these rights is essential for successful disputes.
Fair Credit Billing Act
15 U.S.C. 1666-1666j
Enacted in 1974 as an amendment to the Truth in Lending Act. Establishes procedures for resolving billing errors and protects consumers from unfair billing practices. Enforced by the Consumer Financial Protection Bureau (CFPB) and FTC.
FCBA Dispute Procedures
1
Send Written Notice (Within 60 Days)
Send a written billing error notice to the creditor's billing inquiries address (not payment address). Include your name, account number, the error amount, and explanation of why you believe it's an error.
2
Creditor Acknowledges (Within 30 Days)
The creditor must send written acknowledgment of your dispute within 30 days of receiving your notice, unless they resolve the dispute within that time.
3
Investigation Completed (Within 90 Days)
The creditor must resolve the dispute within two complete billing cycles (not more than 90 days) after receiving your notice. They must either correct the error or explain why they believe the bill is correct.
4
Final Resolution
If the creditor finds an error, they must correct it and credit any finance charges. If they disagree, they must explain in writing and provide documentation. You have 10 days to respond if you disagree with their findings.
Your Rights During Dispute
You Can:
Withhold payment on the disputed amount
Continue using the card normally
Pay undisputed portions of the bill
Request documentation of charges
Escalate to regulators if violated
Creditor Cannot:
Close or restrict your account solely due to dispute
Report the amount as delinquent during investigation
Take collection action on disputed amount
Charge interest on disputed amount (if error found)
Threaten your credit for exercising rights
FCBA Penalties: If a creditor violates FCBA, they forfeit the right to collect the disputed amount up to $50, even if the bill was correct. For pattern violations, actual and statutory damages plus attorney fees may be available.
California Credit Card Protections
California provides additional consumer protections beyond federal law. These state statutes can provide broader remedies and longer timeframes for certain disputes.
California Consumer Legal Remedies Act (CLRA)
Civil Code 1750-1784
Prohibits unfair and deceptive practices in consumer transactions. Applies to credit card issuers and merchants who engage in deceptive billing practices. Provides actual damages, punitive damages up to 3x actual damages, and attorney fees.
California Unfair Competition Law (UCL)
Business & Professions Code 17200
Covers any "unlawful, unfair, or fraudulent business act or practice." Credit card issuers who violate FCBA also violate UCL. Provides restitution and injunctive relief. 4-year statute of limitations.
Song-Beverly Credit Card Act
Civil Code 1747-1748.95
California's credit card law prohibiting merchants from requiring personal information for credit card transactions, setting minimum purchase amounts (with exceptions), and other consumer protections.
California Statutes of Limitations
Claim Type
Deadline
Code Section
FCBA Written Dispute
60 days from statement
15 U.S.C. 1666
FCBA Lawsuit
1 year from violation
15 U.S.C. 1640
CLRA Claim
3 years
Civil Code 1783
UCL Claim
4 years
B&P Code 17208
Fraud
3 years from discovery
CCP 338(d)
Critical Distinction: The 60-day FCBA deadline is for your initial written dispute to preserve withholding rights. You may still have claims under California law even after 60 days, but you lose the powerful FCBA protections including the right to withhold payment.
Filing Complaints in California
If your credit card issuer violates your rights, file complaints with:
CFPB (Consumer Financial Protection Bureau): consumerfinance.gov/complaint - Primary federal regulator
California DFPI: dfpi.ca.gov/file-a-complaint - State financial regulator
California Attorney General: oag.ca.gov/consumers - Consumer protection division
FTC: reportfraud.ftc.gov - Federal trade practices
Credit Card Dispute Process
Follow this process to maximize your chances of a successful dispute while preserving all legal rights.
Step-by-Step Dispute Guide
Step 1: Document Everything
Screenshot the disputed charge from your statement
Save all related receipts, emails, and communications
Note dates: statement date, transaction date, discovery date
Calculate your 60-day FCBA deadline from statement date
If merchant dispute, document attempts to resolve with merchant first
Step 2: Contact Merchant First (If Applicable)
For disputes involving goods/services not as described, FCBA requires you to attempt resolution with the merchant first if:
The purchase was over $50, AND
The purchase was in your state or within 100 miles of your billing address
Document your attempts. This requirement doesn't apply to unauthorized charges or billing errors.
Step 3: Send Written Dispute to Card Issuer
Your dispute must be in writing to preserve FCBA rights. Phone disputes don't count!
Send to the "billing inquiries" address (not payment address)
You may withhold payment on the disputed amount (not your entire bill). Continue paying undisputed charges to avoid late fees and interest on those amounts.
Step 5: Track Issuer Response
Acknowledgment due within 30 days
Resolution due within 90 days (or 2 billing cycles)
If they find error: correction plus interest refund
If they disagree: written explanation required
You have 10 days to respond if you disagree
Common Mistakes to Avoid:
Disputing by phone only (doesn't preserve FCBA rights)
Missing the 60-day deadline from statement date
Sending dispute to payment address instead of billing inquiries
Failing to document merchant contact attempts
Not keeping copies of all correspondence
Sample Credit Card Dispute Demand Letter
Use this template for a formal FCBA billing error dispute. Customize the bracketed sections for your situation.
[Your Name]
[Your Address]
[City, CA ZIP]
[Your Email]
[Date]
[Credit Card Issuer Name]
Billing Inquiries Department
[Billing Inquiries Address]
Via Certified Mail, Return Receipt Requested
Re: Billing Error Dispute - FCBA Notice
Account Number: XXXX-XXXX-XXXX-[Last 4]
Statement Date: [Date of Statement]
Disputed Transaction: [Merchant Name] - $[Amount]
Transaction Date: [Date]
Dear Billing Inquiries Department:
Pursuant to the Fair Credit Billing Act, 15 U.S.C. 1666, I am writing to dispute the following billing error on my account:
DISPUTED CHARGE
Merchant: [Merchant Name]
Date: [Transaction Date]
Amount: $[Amount]
Reference/Transaction ID: [If available]
REASON FOR DISPUTE
[OPTION A - Unauthorized Charge:]
This charge was not authorized by me. I did not make this purchase, did not authorize anyone to use my card for this transaction, and did not receive any goods or services from this merchant. My card [was/was not] lost or stolen. I request that this unauthorized charge be removed from my account immediately.
[OPTION B - Billing Error:]
This charge contains a billing error. [Describe the error: wrong amount charged, duplicate charge, etc.]. The correct amount should be $[Correct Amount] based on [receipt/agreement/advertised price]. I have attached [documentation] showing the correct amount.
[OPTION C - Goods/Services Not Received:]
I was charged for goods/services that I never received. I ordered [description] on [date] and was charged $[amount]. Despite the charge posting on [date], the merchant has failed to deliver the goods/provide the services. I have attempted to resolve this with the merchant on [dates] without success.
[OPTION D - Goods Not As Described:]
The goods/services I received were materially different from what was described. I purchased [what was advertised] but received [what was actually delivered]. I contacted the merchant on [date] to request [refund/exchange] but [describe merchant response or lack thereof]. This constitutes a billing error under FCBA.
FCBA COMPLIANCE NOTICE
Under 15 U.S.C. 1666, you are required to:
1. Acknowledge this dispute in writing within 30 days
2. Resolve this dispute within two billing cycles (not more than 90 days)
3. Refrain from reporting this amount as delinquent during the investigation
4. Refrain from taking any collection action on the disputed amount
I am exercising my right under FCBA to withhold payment on the disputed amount of $[Amount] pending your investigation. I will continue to pay all undisputed amounts on my account.
DOCUMENTATION ENCLOSED
- Copy of statement showing disputed charge
- [Receipt/order confirmation]
- [Communications with merchant]
- [Other supporting documents]
REQUESTED RESOLUTION
I request that you:
1. Investigate this billing error
2. Remove the disputed charge of $[Amount] from my account
3. Credit any finance charges assessed on this amount
4. Provide written confirmation of the correction
If you determine this charge is valid, I request written documentation supporting your conclusion as required by FCBA.
California Consumer Protection Notice: In addition to federal FCBA rights, I reserve all rights under the California Consumer Legal Remedies Act (Civil Code 1750) and California Unfair Competition Law (B&P Code 17200).
Please respond to this dispute at the address above or via email at [Your Email].
Sincerely,
[Your Signature]
[Your Printed Name]
Enclosures:
- Statement showing disputed charge
- [List other attachments]
cc: [Optional - California DFPI if escalating]
Important: Send this letter to the "Billing Inquiries" address on your statement, NOT the payment address. Send via certified mail, return receipt requested. Keep copies of everything. The 60-day deadline runs from the statement date, not the transaction date.
How I Handle California Credit Card Disputes
I personally assist California consumers with credit card dispute letters and escalations. These cases require understanding both federal FCBA requirements and California consumer protection law.
Case Evaluation
Analyze whether your dispute qualifies under FCBA
Assess California law claims (CLRA, UCL)
Review issuer's investigation and response
Identify procedural violations by card issuer
Dispute Letter Drafting
Comprehensive FCBA-compliant dispute letters
California law claims where applicable
Escalation letters to executive offices
Regulatory complaint preparation
Escalation Support
CFPB complaint drafting and submission
California DFPI complaint preparation
State Attorney General referrals
Small claims court guidance
Typical Outcomes
Full credit for unauthorized charges
Billing error corrections with interest refunds
Chargebacks for merchant disputes
Regulatory action for pattern violations
Need Help With a Credit Card Dispute?
I handle California credit card dispute letters and bank/issuer negotiations personally. Contact me for a case evaluation.
Credit card dispute cases are typically handled on:
Flat fee: $350 for FCBA dispute letter preparation
Hourly: $240/hour for complex cases or regulatory complaint support
Contingency: 30% of recovery for cases requiring litigation
Free Initial Review: I review credit card disputes at no charge to assess whether a formal dispute letter is likely to succeed. Send your documentation to owner@terms.law with "Credit Card Dispute" in the subject line.