§ 703 — Notice of error and response

§ 703. Notice of error and response. If a creditor, having transmitted\nto a consumer a statement of the consumer's account, receives from the\nconsumer at an address designated therefor by the creditor in accordance\nwith section seven hundred five of this article, within sixty days of\nthe mailing of said statement, a written notice, on a document other\nthan a document provided by the creditor to accompany payment, setting\nforth sufficient information to enable the creditor to identify the\nconsumer and the account, the amount and transaction shown in the\nstatement which the consumer in good faith believes to be a billing\nerror, and the facts providing the basis for the consumer's belief that\nthe statement is in error; the creditor shall:\n 1. Not later than thirty days after receipt of the notice, mail a\nwritten acknowledgment to the consumer; and\n 2. Not later than ninety days after receipt of the notice and prior to\ntaking any action to collect the amount believed by the consumer to be a\nbilling error, (a) make appropriate corrections in the account of the\nconsumer and mail to the consumer a written notice stating that the\namount believed to be in error has been corrected and will be shown on\nthe next statement mailed to the consumer or (b) send a written notice\nto the consumer setting forth the reasons why the creditor believes the\naccount of the consumer was correctly shown in the statement; and\n 3. Not communicate unfavorable credit information concerning the\nconsumer to any person, including but not limited to credit bureaus or\ncredit reporting agencies, based upon the consumer's failure to pay the\namount believed by him to be a billing error, until the creditor has\ncomplied with this section.\n