Glencoe Accounting

Chapter 7: Posting Journal Entries to General Ledger Accounts

Making It Personal

Federal Trade Commission: Fair Credit Billing

The last time you received a statement for a credit card account, did you check to be sure the charges were correct? It is easy to assume that the company has processed everything correctly, but that is not always the case. Take the time to review the bill for interest charges, credits, and late fees. The FTC's Fair Credit Billing Act Web site provides hints for how to navigate disputes on your account.

Destination Title: Federal Trade Commission, Fair Credit Billing

www.ftc.gov/bcp/conline/pubs/credit/fcb.htm

Guided Activity

Start at the Fair Credit Billing Web site. Record your answers to these questions separately.

1. What kinds of disputes are covered by the Fair Credit Billing Act?
2. If your bill contains an error, what is the creditor required to do?
3. Read the Other Billing Rights section. If you have an account with a credit balance of $50, what are your options?
4. Why do you think the Fair Credit Billing Act was created?