What is the main purpose of the Federal Fair Credit Billing Act?

The main purpose of the Federal Fair Credit Billing Act is to protect consumers against unfair credit billing practices. This act provides consumers with specific rights regarding billing errors, including the ability to dispute charges that they did not authorize or that appear to be incorrect. It establishes procedures that credit card issuers must follow in responding to consumer disputes, ensuring that individuals have a way to rectify errors and protect themselves from potential fraud and unfair practices.

This protection is essential because it helps to maintain consumer confidence in credit systems, ensuring that billing mistakes can be addressed effectively and that customers are not held responsible for charges that should not appear on their accounts. By focusing on consumer protection in the billing process, the act aims to promote fairness and transparency in the credit industry.

In contrast, promoting credit card use, establishing credit limits, or enhancing credit score tracking does not directly align with the primary intent of the Federal Fair Credit Billing Act, which is specifically concerned with correcting billing errors and resolving disputes between consumers and creditors.