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1. How do I file a complaint against a bank/credit card company?
Banks and other regulated financial institutions are exempt from the Virginia Consumer Protection Act, which this Office enforces. The Bureau of Financial Institutions (BFI) is a division within the Virginia State Corporation Commission. The BFI has jurisdiction over Virginia state-chartered financial institutions and certain out-of-state entities that have been granted authority to do business in the Commonwealth.
It is important to remember that the BFI does not act as the complainant's attorney. It also does not have the power to adjudicate complaints. If a dispute turns on facts that do not involve a supervised entity's violation of a specific law or regulation (such as a matter concerning internal policies or guidelines) the BFI will advise the complainant about other ways to pursue the complaint, such as through consulting a private attorney and/or initiating a court proceeding. Check the BFI's FAQs for more information about banking issues and complaints.
The BFI does not have the authority to resolve complaints involving entities that are not under Virginia jurisdiction. Some institutions are regulated by federal government agencies. For example:
Commercial banks having the word "National" or using the title "N.A." (national association) in their title, are organized under and subject to federal law. Requests for information or complaints concerning these national banks should be directed to:
Office of the Comptroller of the Currency
Phone: 1-800-613-6743
Savings banks and savings and loan associations having the word "Federal" in their name or which use the initials "FSB" (federal savings bank), "FSA" (federal savings association), "FA" (federal association) or "FSLA" (federal savings and loan association) are regulated by the Office of Thrift Supervision, a federal agency. Inquiries or complaints should be directed to:
Office of Thrift Supervision
Phone: 1-800-842-6929
Federally regulated credit unions are similarly identified by the word "federal" in their name. Inquiries and complaints concerning federal credit unions should be directed to:
National Credit Union Administration
Phone: (703) 518-6300
If the complaint relates to a mortgage loan that is secured by a property outside of Virginia, you should contact that state's banking authority.
2. Can you give me information about payday lenders?
The Bureau of Financial Institutions is a regulatory division of the Virginia State Corporation Commission (SCC.) This division administers state laws regarding banking and savings institutions, as well as mortgage brokers and lenders, including payday lenders and others.
Legislation has been enacted allowing payday lenders to transact business in Virginia. The legislation became effective on July 1, 2002 and allowed payday lenders licensed by the State Corporation Commission (SCC) to begin such business on that date.
From the Va. Bureau of Financial Institutions Consumer Guide to Payday Lending:
PAYDAY LOANS
Payday loans can offer quick and easy access to money for consumers who may be having temporary cash flow problems or are facing a financial emergency and need to borrow funds for a short length of time. Although these loans are convenient to obtain, consumers are strongly advised to carefully review the contract before they sign it to ensure that they fully understand their obligations as well as the fees charged for these short-term loans. Once a loan agreement is signed, the borrower becomes legally responsible to fulfill the obligations stated in the contract. It is also important that consumers are aware of the significant additional costs they can incur if they are unable to repay these loans when they are due.
PAYDAY LOAN EXAMPLE
The typical payday loan works as follows: A lender signs a contract with a borrower, agreeing to take the borrower's personal check as collateral for a cash advance. The lender agrees to not deposit the check for a specified period of time, yet pays cash immediately to the borrower. Let's say you want to borrow $200 until you get your next paycheck in two weeks. You write a check to a payday lender for $230 (15% of $200 = $30 lender's fee + $200 loan amount = $230) and you get $200 cash in return. The $30 interest you pay on the loan calculates to an Annual Percentage Rate (APR) of 391%.
Read More About Payday Lending
3. Summary of your rights under the Fair Credit Reporting Act
Fair Credit Reporting Act Summary
The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness and privacy of information in the files of consumer reporting agencies.
4. Summary of your rights under the Fair Debt Collection Practices Act
Fair Debt Collection Practices Act Summary
The federal Fair Debt Collection Practices Act (FDCPA) requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.
5. Summary of your rights under the Fair Credit Billing Act
Fair Credit Billing Act Summary
The federal Fair Credit Billing Act (FCBA) applies to “open end” credit accounts, such as credit cards and revolving charge accounts such as department store accounts. It does not apply to installment contracts – loans or extensions of credit you repay on a fixed schedule. The FCBA also establishes procedures for resolving billing errors on your credit card accounts. The summary provided in the link above includes a sample dispute letter.
6. New Bankruptcy Law Requires Credit Counseling Before Filing
Before You File For Personal Bankruptcy
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within six months before they file. They also must complete a debtor education course to have their debts discharged.
7. New Law Promotes Access to Free Credit Reports
Free Credit Report Information
The federal Fair Credit Reporting Act (FCRA) requires: each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.
A Warning About “Imposter” Websites Offering Free Credit Reports - there’s only one website authorized to fill orders for the free annual credit report you are entitled to under law – annualcreditreport.com. Beware of others that look and sound similar!
Other websites that claim to offer “free credit reports,” “free credit scores” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.
Annualcreditreport.com and the nationwide consumer reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message. It’s probably a scam. Forward any such email to the FTC at spam@uce.gov.
8. Privacy - Information to help you protect your personal financial information
As you know, advances in computer technology have made it possible for detailed information about people to be compiled and shared more easily and cheaply than ever. This technology has produced many benefits but at the same time, as personal information becomes more accessible, each of us - companies, associations, government agencies, and consumers - must take precautions to protect against the misuse of our information.
9. Pretexting – Gaining access to your personal financial information by false pretenses
Protections Against Pretexting