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Fair Credit Reporting Act
ß 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. ß 1681s-2]
(a) Duty of Furnishers of Information to Provide Accurate Information
(1) Prohibition
(A) Reporting information with actual knowledge of errors. A person shall not
furnish any information relating to a consumer to any consumer reporting agency
if the person knows or has reasonable cause to believe that the information
is inaccurate.
(B) Reporting information after notice and confirmation of errors. A person
shall not furnish information relating to a consumer to any consumer reporting
agency if
(i) the person has been notified by the consumer, at the address specified
by the person for such notices, that specific information is inaccurate; and
(ii) the information is, in fact, inaccurate.
(C) No address requirement. A person who clearly and conspicuously specifies
to the consumer an address for notices referred to in subparagraph (B) shall
not be subject to subparagraph (A); however, nothing in subparagraph (B) shall
require a person to specify such an address.
(D) Definition. For purposes of subparagraph (A), the term “reasonable
cause to believe that the information is inaccurate” means having specific
knowledge, other than solely allegations by the consumer, that would cause a
reasonable person to have substantial doubts about the accuracy of the information.
(2) Duty to correct and update information. A person who
(A) regularly and in the ordinary course of business furnishes information
to one or more consumer reporting agencies about the person's transactions or
experiences with any consumer; and
(B) has furnished to a consumer reporting agency information that the person
determines is not complete or accurate, shall promptly notify the consumer reporting
agency of that determination and provide to the agency any corrections to that
information, or any additional information, that is necessary to make the information
provided by the person to the agency complete and accurate, and shall not thereafter
furnish to the agency any of the information that remains not complete or accurate.
(3) Duty to provide notice of dispute. If the completeness
or accuracy of any information furnished by any person to any consumer reporting
agency is disputed to such person by a consumer, the person may not furnish the
information to any consumer reporting agency without notice that such information
is disputed by the consumer.
(4) Duty to provide notice of closed accounts. A person who
regularly and in the ordinary course of business furnishes information to a consumer
reporting agency regarding a consumer who has a credit account with that person
shall notify the agency of the voluntary closure of the account by the consumer,
in information regularly furnished for the period in which the account is closed.
(5) Duty to Provide Notice of Delinquency of Accounts
(A) In general. A person who furnishes information to a consumer reporting
agency regarding a delinquent account being placed for collection, charged to
profit or loss, or subjected to any similar action shall, not later than 90
days after furnishing the information, notify the agency of the date of delinquency
on the account, which shall be the month and year of the commencement of the
delinquency on the account that immediately preceded the action.
(B) Rule of construction. For purposes of this paragraph only, and provided
that the consumer does not dispute the information, a person that furnishes
information on a delinquent account that is placed for collection, charged for
profit or loss, or subjected to any similar action, complies with this paragraph,
if--
(i) the person reports the same date of delinquency as that provided by the
creditor to which the account was owed at the time at which the commencement
of the delinquency occurred, if the creditor previously reported that date of
delinquency to a consumer reporting agency;
(ii) the creditor did not previously report the date of delinquency to a consumer
reporting agency, and the person establishes and follows reasonable procedures
to obtain the date of delinquency from the creditor or another reliable source
and reports that date to a consumer reporting agency as the date of delinquency;
or
(iii) the creditor did not previously report the date of delinquency to a consumer
reporting agency and the date of delinquency cannot be reasonably obtained as
provided in clause (ii), the person establishes and follows reasonable procedures
to ensure the date reported as the date of delinquency precedes the date on
which the account is placed for collection, charged to profit or loss, or subjected
to any similar action, and reports such date to the credit reporting agency.
(6) Duties of Furnishers Upon Notice of Identity Theft-Related Information
(A) Reasonable procedures. A person that furnishes information to any consumer
reporting agency shall have in place reasonable procedures to respond to any
notification that it receives from a consumer reporting agency under section
605B relating to information resulting from identity theft, to prevent that
person from refurnishing such blocked information.
(B) Information alleged to result from identity theft. If a consumer submits
an identity theft report to a person who furnishes information to a consumer
reporting agency at the address specified by that person for receiving such
reports stating that information maintained by such person that purports to
relate to the consumer resulted from identity theft, the person may not furnish
such information that purports to relate to the consumer to any consumer reporting
agency, unless the person subsequently knows or is informed by the consumer
that the information is correct.
(7) Negative Information
(A) Notice to Consumer Required
(i) In general. If any financial institution that extends credit and regularly
and in the ordinary course of business furnishes information to a consumer
reporting agency described in section 603(p) furnishes
negative information to such an agency regarding credit extended to a customer,
the financial institution shall provide a notice of such furnishing of negative
information, in writing, to the customer.
(ii) Notice effective for subsequent submissions. After providing such notice,
the financial institution may submit additional negative information to a
consumer reporting agency described in section 603(p)
with respect to the same transaction, extension of credit, account, or customer
without providing additional notice to the customer.
(B) Time of Notice
(i) In general. The notice required under subparagraph (A) shall be provided
to the customer prior to, or no later than 30 days after, furnishing the negative
information to a consumer reporting agency described in section
603(p).
(ii) Coordination with new account disclosures. If the notice is provided
to the customer prior to furnishing the negative information to a consumer
reporting agency, the notice may not be included in the initial disclosures
provided under section 127(a) of the Truth in Lending Act.
(C) Coordination with other disclosures- The notice required under subparagraph
(A)--
(i) may be included on or with any notice of default, any billing statement,
or any other materials provided to the customer; and
(ii) must be clear and conspicuous.
(D) Model Disclosure
(i) Duty of board to prepare. The Board shall prescribe a brief model
disclosure a financial institution may use to comply with subparagraph
(A), which shall not exceed 30 words. See also 12 CFR Part
222, App B
(ii) Use of model not required. No provision of this paragraph shall be construed
as requiring a financial institution to use any such model form prescribed
by the Board.
(iii) Compliance using model. A financial institution shall be deemed to
be in compliance with subparagraph (A) if the financial institution uses any
such model form prescribed by the Board, or the financial institution uses
any such model form and rearranges its format.
(E) Use of notice without submitting negative information. No provision of
this paragraph shall be construed as requiring a financial institution that
has provided a customer with a notice described in subparagraph (A) to furnish
negative information about the customer to a consumer reporting agency.
(F) Safe harbor. A financial institution shall not be liable for failure to
perform the duties required by this paragraph if, at the time of the failure,
the financial institution maintained reasonable policies and procedures to comply
with this paragraph or the financial institution reasonably believed that the
institution is prohibited, by law, from contacting the consumer.
(G) Definitions. For purposes of this paragraph, the following definitions
shall apply:
(i) The term “negative information” means information concerning
a customer's delinquencies, late payments, insolvency, or any form of default.
(ii) The terms “customer” and “financial institution”
have the same meanings as in section 509 Public Law 106-102.
(8) Ability of Consumer to Dispute Information Directly with Furnisher
(A) In general. The Federal banking agencies, the National Credit Union Administration,
and the Commission shall jointly prescribe regulations that shall identify the
circumstances under which a furnisher shall be required to reinvestigate a dispute
concerning the accuracy of information contained in a consumer report on the
consumer, based on a direct request of a consumer.
(B) Considerations. In prescribing regulations under subparagraph (A), the
agencies shall weigh--
(i) the benefits to consumers with the costs on furnishers and the credit
reporting system;
(ii) the impact on the overall accuracy and integrity of consumer reports
of any such requirements;
(iii) whether direct contact by the consumer with the furnisher would likely
result in the most expeditious resolution of any such dispute; and
(iv) the potential impact on the credit reporting process if credit
repair organizations, as defined in section 403(3) [15 U.S.C. §1679a(3)],
including entities that would be a credit repair organization, but for
section 403(3)(B)(i), are able to circumvent the prohibition in subparagraph
(G).
(C) Applicability. Subparagraphs (D) through (G) shall apply in any circumstance
identified under the regulations promulgated under subparagraph (A).
(D) Submitting a notice of dispute- A consumer who seeks to dispute the accuracy
of information shall provide a dispute notice directly to such person at the
address specified by the person for such notices that--
(i) identifies the specific information that is being disputed;
(ii) explains the basis for the dispute; and
(iii) includes all supporting documentation required by the furnisher to
substantiate the basis of the dispute.
(E) Duty of person after receiving notice of dispute. After receiving a notice
of dispute from a consumer pursuant to subparagraph (D), the person that provided
the information in dispute to a consumer reporting agency shall--
(i) conduct an investigation with respect to the disputed information;
(ii) review all relevant information provided by the consumer with the notice;
(iii) complete such person's investigation of the dispute and report the
results of the investigation to the consumer before the expiration of the
period under section 611(a)(1) within which a consumer
reporting agency would be required to complete its action if the consumer
had elected to dispute the information under that section; and
(iv) if the investigation finds that the information reported was inaccurate,
promptly notify each consumer reporting agency to which the person furnished
the inaccurate information of that determination and provide to the agency
any correction to that information that is necessary to make the information
provided by the person accurate.
(F) Frivolous or Irrelevant Dispute
(i) In general. This paragraph shall not apply if the person receiving a
notice of a dispute from a consumer reasonably determines that the dispute
is frivolous or irrelevant, including--
(I) by reason of the failure of a consumer to provide sufficient information
to investigate the disputed information; or
(II) the submission by a consumer of a dispute that is substantially the
same as a dispute previously submitted by or for the consumer, either directly
to the person or through a consumer reporting agency under subsection (b),
with respect to which the person has already performed the person's duties
under this paragraph or subsection (b), as applicable.
(ii) Notice of determination. Upon making any determination under clause
(i) that a dispute is frivolous or irrelevant, the person shall notify the
consumer of such determination not later than 5 business days after making
such determination, by mail or, if authorized by the consumer for that purpose,
by any other means available to the person.
(iii) Contents of notice. A notice under clause (ii) shall include--
(I) the reasons for the determination under clause (i); and
(II) identification of any information required to investigate the disputed
information, which may consist of a standardized form describing the general
nature of such information.
(G) Exclusion of credit repair organizations. This paragraph shall not apply
if the notice of the dispute is submitted by, is prepared on behalf of the consumer
by, or is submitted on a form supplied to the consumer by, a credit repair organization,
as defined in section 403(3), or an entity that would be a credit repair organization,
but for section 403(3)(B)(i).
(9) Duty to provide notice of status as medical information furnisher. A person
whose primary business is providing medical services, products, or devices, or
the person's agent or assignee, who furnishes information to a consumer reporting
agency on a consumer shall be considered a medical information furnisher for purposes
of this title, and shall notify the agency of such status.
(b) Duties of Furnishers of Information upon Notice of Dispute
(1) In general. After receiving notice pursuant to section 611(a)(2)
[§ 1681i] of a dispute with regard to the completeness or accuracy of any
information provided by a person to a consumer reporting agency, the person shall
(A) conduct an investigation with respect to the disputed information;
(B) review all relevant information provided by the consumer reporting agency
pursuant to section 611(a)(2) [§ 1681i];
(C) report the results of the investigation to the consumer reporting agency;
(D) if the investigation finds that the information is incomplete or inaccurate,
report those results to all other consumer reporting agencies to which the person
furnished the information and that compile and maintain files on consumers on
a nationwide basis; and (E) if an item of information disputed by a consumer
is found to be inaccurate or incomplete or cannot be verified after any reinvestigation
under paragraph (1), for purposes of reporting to a consumer reporting agency
only, as appropriate, based on the results of the reinvestigation promptly–
(i) modify that item of information;
(ii) delete that item of information; or
(iii) permanently block the reporting of that item of information.
(2) Deadline. A person shall complete all investigations, reviews, and reports
required under paragraph (1) regarding information provided by the person to a
consumer reporting agency, before the expiration of the period under section
611(a)(1) [§ 1681i] within which the consumer reporting agency is required
to complete actions required by that section regarding that information.
(c) Limitation on liability. Except as provided in section
621(c)(1)(B), sections 616 and 617 do
not apply to any violation of--
(1) subsection (a) of this section, including any regulations issued thereunder;
(2) subsection (e) of this section, except that nothing in this paragraph shall
limit, expand, or otherwise affect liability under section 616
or 617, as applicable, for violations of subsection (b) of
this section; or
(3) subsection (e) of section 615.
(d) Limitation on enforcement. The provisions of law described in paragraphs (1)
through (3) of subsection (c) (other than with respect to the exception described
in paragraph (2) of subsection (c)) shall be enforced exclusively as provided under
section 621 by the Federal agencies and officials and the State officials identified
in section 621.
(e) Accuracy Guidelines and Regulations Required
(1) Guidelines. The Federal banking agencies, the National Credit Union Administration,
and the Commission shall, with respect to the entities that are subject to their
respective enforcement authority under section 621, and in
coordination as described in paragraph (2)--
(A) establish and maintain guidelines for use by each person that furnishes
information to a consumer reporting agency regarding the accuracy and integrity
of the information relating to consumers that such entities furnish to consumer
reporting agencies, and update such guidelines as often as necessary; and
(B) prescribe regulations requiring each person that furnishes information
to a consumer reporting agency to establish reasonable policies and procedures
for implementing the guidelines established pursuant to subparagraph (A).
(2) Coordination. Each agency required to prescribe regulations under paragraph
(1) shall consult and coordinate with each other such agency so that, to the extent
possible, the regulations prescribed by each such entity are consistent and comparable
with the regulations prescribed by each other such agency.
(3) Criteria. In developing the guidelines required by paragraph (1)(A), the
agencies described in paragraph (1) shall--
(A) identify patterns, practices, and specific forms of activity that can compromise
the accuracy and integrity of information furnished to consumer reporting agencies;
(B) review the methods (including technological means) used to furnish information
relating to consumers to consumer reporting agencies;
(C) determine whether persons that furnish information to consumer reporting
agencies maintain and enforce policies to assure the accuracy and integrity
of information furnished to consumer reporting agencies; and
(D) examine the policies and processes that persons that furnish information
to consumer reporting agencies employ to conduct reinvestigations and correct
inaccurate information relating to consumers that has been furnished to consumer
reporting agencies.
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Fair Credit Reporting Act: FCRA Responsibilities of consumer reporting agencies
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