True or False: Once a report of unauthorized use of a credit card has been made, the consumer must pay the disputed charge until the dispute is resolved.

The correct answer is false because under the guidelines set forth by the Fair Credit Billing Act (FCBA), consumers are not required to pay for any charges that they dispute during a formal investigation. When a consumer reports unauthorized use of their credit card, the credit card issuer must investigate the claim. During this period, the consumer is not obligated to pay the disputed amount. This consumer protection is designed to prevent financial harm while the validity of the charge is being assessed.

Additionally, once an unauthorized charge is reported, consumers are usually protected from liability for those charges, particularly if they report the loss or theft of their card in a timely manner. Therefore, they can refuse to pay the disputed charges until the resolution of the dispute, affirming the importance of consumer rights in safeguarding against fraud.