What is required from the creditor once a billing error is disputed?

The requirement for creditors to acknowledge a disputed billing error within 30 days is established under the Fair Credit Billing Act (FCBA), which specifies the rights of consumers regarding billing errors on credit card accounts. When a consumer reports a billing error, the creditor is obligated to investigate the claim. Within this 30-day period, they must send a written acknowledgment to the consumer to confirm that they have received the dispute.

This requirement serves to protect consumers by ensuring they are informed that their dispute is being addressed and provides a timeline for the creditor to rectify the situation. Acknowledgment within this timeframe also helps facilitate communication between the creditor and the consumer, which is essential in resolving disputes efficiently.

The other options suggest timelines and actions that do not align with FCBA requirements for billing disputes. For example, while timely resolution is important, correcting the mistake within one week or providing a refund within 14 days are not mandated by law. Similarly, freezing the account is not a standard action required once a dispute is raised; rather, the focus is on acknowledgment and investigation.