What is the primary purpose of the Fair Credit Billing Act?

The Fair Credit Billing Act primarily serves to provide a method for correcting credit account errors. This legislation empowers consumers to dispute billing errors and requires creditors to investigate and resolve these disputes within a specified time frame. It includes protections for consumers against inaccurate billing, such as unauthorized charges or charges for goods and services not received. By ensuring a transparent process for addressing and resolving discrepancies, the act promotes consumer confidence and fairness in credit transactions.

This focus on resolving billing issues distinguishes it from other objectives, such as preventing fraud or lowering interest rates, which are not the primary concern of the Fair Credit Billing Act. Therefore, understanding this act's role in protecting consumer rights and facilitating accurate billing is crucial for individuals navigating credit usage and management.