1026.13 - Billing Error Resolution Flashcards
What are seven Reg provided scenarios for a billing dispute under FCBA?
The seven scenarios are…
1) Ext. on stmt not made by AH or person who has authority
2) Ext. on stmt that is not identified in accordance with description requirements.
3) Ext. on stmt for prop/serv. not accepted or delivered to consumer or their designee. (not same as C/D)
4) Creditors failure to properly credit pymt or other credit
5) Computational or similar error of accounting nature
6) Ext. that consumer requests further clarification incl. doc evidence. Requests for receipts, slips unaccompanied by error allegation do not trigger FCBA requirements.
7) Creditor’s failure to send stmt to consumer’s last known address if new address received in writing 20 days b4 stmt.
What’re requirements necessary for dispute to be treated under Reg?
1) Received by creditor at specific address no later than 60 days after SENDING of stmt that originally reflects error.
2) Creditor can reasonably identify AH name and acct #
3) Indicates AH belief and reasons that error exists, type, date and amount of error.
What are creditor’s timing requirements under FCBA?
1) Send acknowledgement letter to AH w/in 30 days of receiving dispute, unless resolved before then
2) Mail resolution letter to AH within two billing cycles but no longer than 90 days from date dispute received.
What are the rules pending resolution of FCBA dispute?
1) AH may withhold payment on disputed amount, including auto-pay if received at least 3 days before due date.
2) Collection on disputed amount is prohibited
3) Creditor can not report adversely on consumer or disputed amount.
4) Creditor cannot accelerate debt, debt payment or restrict account.
What are requirements if error occurred as alleged?
1) Correct billing error and any other discovered errors
2) Credit acct accordingly, including any related fees and interest.
3) Mail or deliver correction notice to AH
Procedure if different or no error occurred?
1) Mail/deliver explanation to consumer with reasons for creditor’s belief that alleged error is incorrect
2) Furnish copies of evidence upon AH’s request
3) If different error occurred, correct and credit acct accordingly including related fees and FC.
What are the creditor’s rights and duties after resolution and consumer owes all or part of disputed amt?
1) Notify AH in writing of time when payment is due and portion of disputed amount and fees/FC consumer still owes
2) If applicable, allow AH to make payments with necessary grace period.
3) May report acct as delinquent if AH does not pay amt from #2
4) May not report amt or acct as delinquent if creditor receives, within grace period timeframe, further written notice that amt is still in dispute. Unless, the creditor also reports amt/acct in dispute, creditor notifies AH of bureaus reported and promptly reports any subsequent resolution.
What are creditor’s responsibilities if AH continues disputes?
None so long as other requirements have been fully met.
What happens if creditor fails to comply with FCBA?
Failure may result in forfeiture of disputed amounts and may be subject to liability provisions of section 130 of Reg Z.
What are requirements for disputes involving 3rd Party Pay vendors such as PayPal, FB Pay, etc?
- Creditor not required to adhere to FCBA in the event that when ext. is funded through use of open end and ext. is made to fund 3rd party acct and funds are not simultaneously used to make trxn or; ext of credit is made to fund only portion of purchase amt and AH uses other sources.
Per Reg, what constitutes a “reasonable investigation”?
Cannot auto-decline AH’s claim based solely AH’s failure or refusal to comply with a particular request. May reasonably request the consumer’s cooperation. However, if creditor otherwise has no knowledge/facts to confirm the billing error, then creditor may reasonably terminate investigation. Investigation and it’s efforts should be documented and retained.
