Fair Credit Billing Act

The video explains an amendment to the Truth in Lending Act, which offers consumer protection in credit relationships, primarily credit cards. It limits consumer liability for unauthorized charges to $50 and outlines procedures for disputing such charges. The Federal Trade Commission enforces these rules, requiring institutions to comply. Consumers must review account statements and report unauthorized charges within 60 days. If not, they may be liable for the full amount. Enforcement is through private action, allowing for damages and costs recovery. The amendment also protects consumers in transactions involving defective goods.

What is the maximum liability for a consumer for unauthorized credit card charges under the amendment to the Truth in Lending Act?

• $200

• $0

• $100

• $50

How many days does a consumer have to notify the credit agency of unauthorized charges after receiving their account statement?

• 45 days

• 30 days

• 60 days

• 90 days

What is the time frame for a credit agency to investigate unauthorized charges once notified by the consumer?

• 45 days

• 60 days

• 15 days

• 30 days

What type of action is available to enforce the rules against lenders or credit agencies?

• Private action

• Government action

• Public action

• Class action

In what scenario can a consumer dispute a transaction for a defective product?

• If the product was on sale

• If the product was purchased online

• If the product was defective or non-conforming

• If the product was delivered late