Fair Credit Billing Act (Regulation Z billing-error resolution and claims-and-defences)

The clocks it starts

• Written billing-error notice to the creditor (60 days)Fatal if missedYour notice must reach the creditor within 60 days of the first periodic statement showing the error, at the billing-inquiries address disclosed on the statement — not the address you send payments to. Missing this deadline ends the billing-error claim.Regulation Z, 12 CFR § 1026.13(b)(1) — § 1026.13(b)(1) — notice received no later than 60 days after the creditor transmitted the first periodic statement reflecting the alleged billing errorNotice period
• Creditor's written acknowledgment (30 days)§ 1026.13(c)(1) requires the creditor to mail or deliver a written acknowledgment within 30 days of receiving your notice, unless it has already resolved the dispute. The clock runs from the date your notice reaches them. (Period: 30 days. We need the start date to work out your exact deadline.)Regulation Z, 12 CFR § 1026.13(c) — § 1026.13(c)(1)-(2) — written acknowledgment within 30 days; resolution within 2 complete billing cycles and in no event later than 90 daysResponse due
• Creditor must resolve (2 billing cycles, never more than 90 days)§ 1026.13(c)(2) requires resolution within two complete billing cycles and in no event later than 90 days after your notice is received. Blowing this deadline has a price: under 15 U.S.C. § 1666(e) the creditor forfeits the disputed amount and any finance charges on it, up to $50. (Period: 90 days. We need the start date to work out your exact deadline.)Regulation Z, 12 CFR § 1026.13(c) — § 1026.13(c)(1)-(2) — written acknowledgment within 30 days; resolution within 2 complete billing cycles and in no event later than 90 daysResponse due
• Civil action under TILA § 130 (1 year)If the creditor breaks the billing-error rules you can sue it under 15 U.S.C. § 1640, but an individual action must be brought within one year of the violation (§ 1640(e)). Missing this does not affect your right to have the charge removed; it removes only the damages action against the creditor.15 U.S.C. § 1640 — § 1640(a) civil liability; § 1640(e) one-year limitation period for an individual actionLimitation period

What it entitles you to, beyond money

• You may stop paying the disputed amount while the dispute is open§ 1026.13(d)(1): "The consumer need not pay (and the creditor may not try to collect) any portion of any required payment that the consumer believes is related to the disputed amount." Keep paying the undisputed balance — that part is still due, and paying it removes the creditor's only honest argument for a late fee.§ 1026.13(d)(1)-(2) — consumer need not pay the disputed amount, and the creditor may not report it as delinquent, while the dispute is open
• The creditor may not report the disputed amount as delinquent§ 1026.13(d)(2) forbids the creditor from reporting the disputed amount as delinquent to a credit bureau, or from threatening to, until the dispute is settled or judgment is entered. If it has already done so, that is a separate violation worth raising in the same letter.§ 1026.13(d)(1)-(2) — consumer need not pay the disputed amount, and the creditor may not report it as delinquent, while the dispute is open
• The creditor must acknowledge in 30 days and resolve within two billing cycles§ 1026.13(c). If it misses those deadlines, 15 U.S.C. § 1666(e) makes it forfeit the disputed amount and any finance charges on it, capped at $50 — small money, but a clean, citable consequence that concentrates minds.§ 1026.13(c)(1)-(2) — written acknowledgment within 30 days; resolution within 2 complete billing cycles and in no event later than 90 days
• You can demand the documents the creditor relied onIf the creditor concludes there was no billing error, § 1026.13(f) requires a written explanation, and § 1026.13(g)(4) entitles you to copies of the documentary evidence on request. Ask for it in the same breath as you dispute — a creditor that cannot produce a signed receipt or a delivery confirmation has usually not conducted the reasonable investigation the rule requires.§ 1026.13(f) — procedures if a billing error did not occur as asserted; § 1026.13(g)(4) documentary evidence on request

What the other side will say

Each of these is a refusal this regime lets a counterparty attempt, paired with the answer to it. Reading them before you write is worth more than any amount of polish on the letter itself.

Where to take it next

1. 01Written billing-error notice to the creditorSend it to the billing-inquiries address printed on your statement — § 1026.13(b)(1) requires the notice to be received at the address disclosed under § 1026.7(a)(9)/(b)(9). Notices sent to the payment address, or made by phone, do not start the statutory clock. Send it so you can prove delivery, state the account number, the dollar amount and why you believe it is wrong, and keep a copy.Claim direct·typically 30 days
2. 02Demand the documentary evidence and escalate internallyIf the creditor says no error occurred, request the documents under § 1026.13(g)(4) and put your rebuttal in writing within 10 days of their explanation. Doing so obliges the creditor, if it then reports the amount as delinquent, to disclose that the amount is disputed and to give the name and address of anyone it reported to (§ 1026.13(g)(3)).Internal appeal·typically 30 days
3. 03Complaint to the Consumer Financial Protection BureauThe CFPB routes the complaint to the issuer and requires a substantive response, usually within 15 days. It is free, takes about fifteen minutes, and creates a supervised paper trail that materially changes how a large issuer handles a file.Regulator·typically 60 days·official page
4. 04State attorney general and prudential regulatorYour state attorney general takes consumer complaints against card issuers, and national banks answer to the Office of the Comptroller of the Currency (helpwithmybank.gov). Running these in parallel with the CFPB costs nothing.Regulator·typically 90 days·official page
5. 05Small-claims action under TILA § 130A creditor that fails to follow § 1026.13 is civilly liable under 15 U.S.C. § 1640 for actual damages, statutory damages, costs and a reasonable attorney's fee. An individual action must be filed within one year of the violation. Small-claims courts handle these without a lawyer; filing fees are typically USD 30-100 and often recoverable.Small claims·typically 120 days