|Posted on December 14, 2018 at 7:55 AM|
All furnishers of consumer reports must comply with all applicable regulations, including regulations promulgated after
this notice was first prescribed in 2004. Information about applicable regulations currently in effect can be found at the
Consumer Financial Protection Bureau's website,
NOTICE TO FURNISHERS OF INFORMATION:
OBLIGATIONS OF FURNISHERS UNDER THE FCRA
The federal Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681-1681y, imposes responsibilities on all persons who
furnish information to consumer reporting agencies (CRAs). These responsibilities are found in Section 623 of the
FCRA, 15 U.S.C. § 1681s-2. State law may impose additional requirements on furnishers. All furnishers of information to CRAs
should become familiar with the applicable laws and may want to consult with their counsel to ensure that they are in compliance.
The text of the FCRA is set forth in full at the Bureau of Consumer Financial Protection's website at
. A list of the sections of the FCRA cross-referenced to the U.S. Code is at the end of this
Section 623 imposes the following duties:
The banking and credit union regulators and the CFPB will promulgate guidelines and regulations dealing with the accuracy
of information provided to CRAs by furnishers. The regulations and guidelines issued by the CFPB will be available at
when they are issued. Section 623(e).
General Prohibition on Reporting Inaccurate Information
The FCRA prohibits information furnishers from providing information to a CRA that they know or have reasonable cause to
believe is inaccurate. However, the furnisher is not subject to this general prohibition if it clearly and conspicuously specifies
an address to which consumers may write to notify the furnisher that certain information is inaccurate. Sections 623(a)(1)(A)
Duty to Correct and Update Information
If at any time a person who regularly and in the ordinary course of business furnishes information to one or more CRAs
determines that the information provided is not complete or accurate, the furnisher must promptly provide complete
and accurate information to the CRA. In addition, the furnisher must notify all CRAs that received the information of any
corrections, and must thereafter report only the complete and accurate information. Section 623(a)(2).
Duties After Notice of Dispute from Consumer
If a consumer notifies a furnisher, at an address specified by the furnisher for such notices, that specific information is
inaccurate, and the information is, in fact, inaccurate, the furnisher must thereafter report the correct information to CRAs.
If a consumer notifies a furnisher that the consumer disputes the completeness or accuracy of any information reported by
the furnisher, the furnisher may not subsequently report that information to a CRA without providing notice of the dispute.
The federal banking and credit union regulators and the CFPB will issue regulations that will identify when an information
furnisher must investigate a dispute made directly to the furnisher by a consumer. Once these regulations are issued,
furnishers must comply with them and complete an investigation within 30 days (or 45 days, if the consumer later provides
relevant additional information) unless the dispute is frivolous or irrelevant or comes from a “credit repair organization.” The
CFPB regulations will be available at
. Section 623(a)(8).
Duties After Notice of Dispute from Consumer Reporting Agency
If a CRA notifies a furnisher that a consumer disputes the completeness or accuracy of information provided by the
furnisher, the furnisher has a duty to follow certain procedures. The furnisher must:
•Conduct an investigation and review all relevant information provided by the CRA, including information given to the
CRA by the consumer. Sections 623(b)(1)(A) and (b)(1)(B).
•Report the results to the CRA that referred the dispute, and, if the investigation establishes that the information was,
in fact, incomplete or inaccurate, report the results to all CRAs to which the furnisher provided the information that
compile and maintain files on a nationwide basis. Sections 623(b)(1)(C) and (b)(1)(D).
•Complete the above steps within 30 days from the date the CRA receives the dispute (or 45 days, if the consumer
later provides relevant additional information to the CRA). Section 623(b)(2).
•Promptly modify or delete the information, or block its reporting. Section 623(b)(1)(E).
Duty to Report Voluntary Closing of Credit Accounts
If a consumer voluntarily closes a credit account, any person who regularly and in the ordinary course of business furnishes
information to one or more CRAs must report this fact when it provides information to CRAs for the time period in which the
account was closed. Section 623(a)(4).
Duty to Report Dates of Delinquencies
If a furnisher reports information concerning a delinquent account placed for collection, charged to profit or loss, or subject
to any similar action, the furnisher must, within 90 days after reporting the information, provide the CRA with the month and
the year of the commencement of the delinquency that immediately preceded the action, so that the agency will know how
long to keep the information in the consumer's file. Section 623(a)(5).
Any person, such as a debt collector, that has acquired or is responsible for collecting delinquent accounts and that reports
information to CRAs may comply with the requirements of Section 623(a)(5) (until there is a consumer dispute) by reporting
the same delinquency date previously reported by the creditor. If the creditor did not report this date, they may comply with
the FCRA by establishing reasonable procedures to obtain and report delinquency dates, or, if a delinquency date cannot
be reasonably obtained, by following reasonable procedures to ensure that the date reported precedes the date when the
account was placed for collection, charged to profit or loss, or subjected to any similar action. Section 623(a)(5).
Duties of Financial Institutions When Reporting Negative Information
Financial institutions that furnish information to “nationwide” consumer reporting agencies, as defined in Section 603(p),
must notify consumers in writing if they may furnish or have furnished negative information to a CRA. Section 623(a)(7). The
Consumer Financial Protection Bureau has prescribed model disclosures, 12 CFR Part 1022, App. B.
Duties When Furnishing Medical Information
A furnisher whose primary business is providing medical services, products, or devices (and such furnisher's agents or
assignees) is a medical information furnisher for the purposes of the FCRA and must notify all CRAs to which it reports of
this fact. Section 623(a)(9). This notice will enable CRAs to comply with their duties under Section 604(g) when reporting
Duties when ID Theft Occurs
All furnishers must have in place reasonable procedures to respond to notifications from CRAs that information furnished is
the result of identity theft, and to prevent refurnishing the information in the future. A furnisher may not furnish information
that a consumer has identified as resulting from identity theft unless the furnisher subsequently knows or is informed by the
consumer that the information is correct. Section 623(a)(6). If a furnisher learns that it has furnished inaccurate information
due to identity theft, it must notify each consumer reporting agency of the correct information and must thereafter report
only complete and accurate information. Section 623(a)(2). When any furnisher of information is notified pursuant to the
procedures set forth in Section 605B that a debt has resulted from identity theft, the furnisher may not sell, transfer, or place
for collection the debt except in certain limited circumstances. Section 615(f).
The Consumer Financial Protection Bureau website,
, has more information about the FCRA.
Citations for FCRA sections in the U.S. Code, 15 U.S.C. § 1681 et seq.:
15 U.S.C. 1681
15 U.S.C. 1681a
15 U.S.C. 1681b
15 U.S.C. 1681c
15 U.S.C. 1681c-1
15 U.S.C. 1681c-2
15 U.S.C. 1681d
15 U.S.C. 1681e
15 U.S.C. 1681f
15 U.S.C. 1681g
15 U.S.C. 1681h
15 U.S.C. 1681i
15 U.S.C. 1681j
15 U.S.C. 1681k
15 U.S.C. 1681l
15 U.S.C. 1681m
15 U.S.C. 1681n
15 U.S.C. 1681o
15 U.S.C. 1681p
15 U.S.C. 1681q
15 U.S.C. 1681r
15 U.S.C. 1681s
15 U.S.C. 1681s-1
15 U.S.C. 1681s-2
15 U.S.C. 1681t
15 U.S.C. 1681u
15 U.S.C. 1681v
15 U.S.C. 1681w
15 U.S.C. 1681x
15 U.S.C. 1681y