What is the Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a federal law that applies to most banks and other lenders in Virginia. The FCBA protects consumers from unfair billing practices, such as unauthorized charges, billing errors, or unfair collection efforts. The FCBA requires lenders to investigate any dispute that a consumer raises concerning a bill sent to them. If a consumer notifies the lender of a problem with their bill, the lender must respond within 30 days of the consumer’s complaint. Lenders must also promptly correct any billing errors found and work with the consumer to resolve any disputes. The FCBA also protects consumers from unfair collection efforts. If a lender has debt that is more than 60 days past due, they must provide written notice to the consumer before attempting to collect the debt. This notice must include a description of the amount and date of the debt, and the name and address of the lender. In addition, the FCBA also prohibits lenders from taking certain collection actions, such as contacting a consumer’s employer or threatening to take legal action against them. The FCBA also provides consumers with other protections, such as the right to ask for a written explanation of the debt. Overall, the Fair Credit Billing Act helps protect consumers in Virginia from unfair and illegal billing practices by banks and other lenders. This law offers legal protection to consumers, and provides them with important rights and remedies if they are subjected to unfair billing practices.

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What is the Fair Credit Billing Act?

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