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Fair Credit Billing Act (FCBA) and Electronic Fund Transfer Act (EFTA)
The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer protection for consumers and guidelines for creditors. This article will define the FCBA and EFTA and provide a guideline of the protections under the FCBA and the EFTA.
With technology, there has come a great increase in convenience. It is easy to make payments over the phone and via the Internet. Additionally, it is very simple to swipe a card at a store and pay for your purchases. But, as one might guess, all of this technology also brings more challenges. It is easier to steal someone else's identity, computers sometimes cause errors, and humans can enter incorrect information into the computer.
When mistakes are made – or fraud is perpetrated – using electronic means, it can be scary. However, you do not need to be worried about being held accountable for issues that are not your doing. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) both offer legal guidelines related to these electronic transactions.
FCBA and EFTA
While the Fair Credit Billing Act and the Electronic Funds Transfer Act are similar in their nature and protections, they technically cover different situations:
FCBA: The Fair Credit Billing Act applies only to revolving credit accounts. These are such accounts as credit cards, department store accounts and checking overdraft protection. (It is worth noting that in most cases, overdraft protection is considered a line of credit and charges interest and fees.) If you have an installment credit account, such as a car loan or a student loan, in which you pay a set amount each month, the FCBA does not apply.
EFTA: The Electronic Fund Transfer Act is designed to protect consumers who engage in transactions at the ATM, use debit cards in person at the store and other banking transactions that are done electronically.
Protections under the FCBA and the EFTA
Both the Fair Credit Billing Act and the Electronic Fund Transfer Act offer similar protections in their respective spheres. Here is what the law offers for guidelines with regard to credit billing and electronic fund transactions:
Additionally, it is important to note that you can request copies of documentation. Creditors and others are required to inform you of errors and the steps being taken to fix the problem. If you want documentation, it must be provided to you.
You can learn more about your rights as a consumer under the FCBA and the EFTA by visiting the Federal Trade Commission Web site at www.ftc.gov.
Related Article: Fair Debt Collection Practices Act (FDCPA) >>
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