What is the Fair Credit Billing Act?

The Fair Credit Billing Act (FCBA) is a federal law that governs credit card dispute resolution in the state of Virginia. It was passed in 1975 by the United States Congress in order to protect consumers from unfair billing practices from credit card companies. The FCBA outlines procedures for cardholders to dispute charges with the card issuer. To begin the dispute resolution process, the cardholder must notify the credit card issuer in writing of the billing error within sixty days of receiving the bill. The issuer is then required to investigate the bill, acknowledge the dispute in writing within thirty days, and correct any mistakes. The FCBA also outlines how the credit card issuer must respond to disputes. It states that the issuer cannot report the disputed amount to credit reporting agencies until the investigation is complete. If a dispute is valid, the FCBA requires the issuer to reverse the charges, return any finance charges and late fees due to the dispute, and remove any negative information reported to the credit bureau. The FCBA is a helpful tool for credit cardholders in Virginia who may be dealing with unfair billing practices and incorrect charges. It provides an protections to consumers and outlines an effective dispute resolution process.

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What is the Fair Credit Billing Act?

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