The federal Fair Credit Reporting Act (FCRA) as amended, imposes
responsibilities on all persons who furnish information to Consumer Reporting Agencies
(CRAs). These responsibilities are found in Section 623 of the FCRA.
State law may impose additional requirements. All furnishers of information to CRAs should
become familiar with the law and may want to consult with their counsel to ensure that
they are in compliance. The FCRA, 15 U.S.C. 1681 et seq., is set forth in full at the
Federal Trade Commission's Internet web site (http://www.ftc.gov)
Section 623 imposes the following duties:
General Prohibition on Reporting Inaccurate Information:
The FCRA prohibits information furnishers from providing information to a consumer
reporting agency (CRA) that they know (or consciously avoid knowing) 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)(a)(A) and
(a)(1)(C)
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 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 the 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. Section 623(a)(1)(B)
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. Section 623(a)(3)
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, 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 and that compile and maintain files on a
nationwide basis. Sections 623 (b)(1) (C) and (b) (1) (D)
Complete the above within 30 days from the date the CRA received the dispute (or 45
days, if the consumer later provides relevant additional information to the CRA). Section 623(b)(2)
Duty to Report Voluntary Closing of 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 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)