What was the primary purpose of the Fair Credit Billing Act (FCBA) enacted in 1974?

The primary purpose of the Fair Credit Billing Act (FCBA), enacted in 1974, is to eliminate unfair billing practices in consumer credit accounts. This law was designed to protect consumers from unfair and inaccurate billing practices by requiring that creditors provide consumers with clear and accurate bills and by offering a process for disputing charges. The FCBA addresses issues such as unauthorized charges, billing errors, and the need for a reasonable time for consumers to pay their bills.

Specifically, the FCBA allows consumers to dispute charges they believe are incorrect and require creditors to investigate those disputes. This helps ensure transparency and accountability in the billing process, ultimately fostering consumer trust in credit systems. By focusing on the rights of consumers to address discrepancies and unfair practices, the FCBA plays a crucial role in consumer protection within the credit industry.